3.3 Impact of the Internet The explosive growth of the Internet has also brought new meaning to building customer relationships. Greater customer access to the organization, such as online ordering and around the clock operations, has set the stage for a shifting paradigm in customer service. A recent report describes how successful Web sites are in building lasting relationships with “e-customers” by offering services in traditionally impossible ways (Peppers and Rogers, 2000). Using a series of richly detailed case studies, they also contended that in the broad arena of business-to-business commerce, organizations would rise or fall on the basis of their capabilities to cultivate one-to-one relationships with their
customers (Peppers and Rogers, 2001). Customers expect organizations to anticipate their needs and provide consistent service at levels above their expectations. In return, customers are loyal to the organization for longer periods of time. For instance, the American Airlines Web site builds customized customer views in real time allowing two million frequent fliers to have a unique experience each time they log on (Peppers and Rogers, 1999). Prior to the Internet, there was not a cost-effective way to tell millions of customers fitting a certain profile about an immediately available special fare.
With the interactive capability of the Internet, American Airlines can do exactly that without having to tell everyone about every special fare. As a part of CRM, American Airlines offers loyal customers promotional fares and special discounts to partner businesses based on individual customer preferences.
3.3 Impact of the Internet The explosive growth of the Internet has also brought new meaning to building customer relationships. Greater customer access to the organization, such as online ordering and around the clock operations, has set the stage for a shifting paradigm in customer service. A recent report describes how successful Web sites are in building lasting relationships with “e-customers” by offering services in traditionally impossible ways (Peppers and Rogers, 2000). Using a series of richly detailed case studies, they also contended that in the broad arena of business-to-business commerce, organizations would rise or fall on the basis of their capabilities to cultivate one-to-one relationships with their
customers (Peppers and Rogers, 2001). Customers expect organizations to anticipate their needs and provide consistent service at levels above their expectations. In return, customers are loyal to the organization for longer periods of time. For instance, the American Airlines Web site builds customized customer views in real time allowing two million frequent fliers to have a unique experience each time they log on (Peppers and Rogers, 1999). Prior to the Internet, there was not a cost-effective way to tell millions of customers fitting a certain profile about an immediately available special fare.
With the interactive capability of the Internet, American Airlines can do exactly that without having to tell everyone about every special fare. As a part of CRM, American Airlines offers loyal customers promotional fares and special discounts to partner businesses based on individual customer preferences.
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