The One to One Future: Building Relationships One Customer at a Time

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The One to One Future revolutionized marketing when it was first published. Then considered a radical rethinking of marketing basics, this bestselling book has become today's bible for marketers. Now finally available in paperback, this completely revised and updated edition--with an all-new User's Guide--takes readers step-by-step through the latest strategies needed for any business to compete, and succeed, in the Interactive Age.

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Overview

The One to One Future revolutionized marketing when it was first published. Then considered a radical rethinking of marketing basics, this bestselling book has become today's bible for marketers. Now finally available in paperback, this completely revised and updated edition--with an all-new User's Guide--takes readers step-by-step through the latest strategies needed for any business to compete, and succeed, in the Interactive Age.

Most businesses follow time-honored mass-marketing rules of pitching their products to the greatest number of people. However, selling more goods to fewer people is not only more efficient but far more profitable. The One to One Future is a radically innovative business paradigm focusing on the share of customer--one customer at a time--rather than just the share of market.

Authors Don Peppers and Martha Rogers reveal one to one strategies to:

* Find the 20 percent--or 2 percent--of your own customers and prospects who are the most loyal and who offer the biggest opportunities for future profit;

* Collaborate with each customer, one at a time, just as you now work with individual suppliers or marketing partners;

* Nurture your relationships with each customer by relying on new one to one media vehicles--not just the mail, but the fax machine, the touch-tone phone, voice mail, cell phones, and interactive television.

Leading-edge companies such as MCI, Lexus, Levi Strauss, and Nissan Canada, and thousands of smaller enterprises, have already adopted the one-to-one perspective. The strategies outlined in this book work just as well--often even better--for small companies, from two-person accounting firms to flower shops to furniture stores.

Using the 1 to 1 techniques, readers will discover what their customers want today and what they will want tomorrow. Already being tested in companies such as Procter & Gamble, Nissan, and American Express, the 1 to 1 system represents a major evolution in business.

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Editorial Reviews

From the Publisher
"Book of the Year"
--Tom Peters

"Peters was wrong. This is not the book of the year. It's not even the book of the decade. It's one of the two or three most important business books ever written."
--George Gendron, Inc. magazine

The book that's revolutionizing marketing in the '90s."
--David Weinberger, Wired

"A unique perspective on the fundamental, structural changes that technology is already bringing to the real world of business competition."
--Esther Dyson, President, EDventure Holdings

"Hands down...the best marketing book for the interactive age."
--Andrew Jaffe, Vice President and Executive Editor, Adweek

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Product Details

  • ISBN-13: 9780385485661
  • Publisher: Crown Publishing Group
  • Publication date: 6/28/1997
  • Series: One to One Series
  • Edition description: Reprint
  • Pages: 429
  • Product dimensions: 4.97 (w) x 7.26 (h) x 1.20 (d)

Read an Excerpt

That Was Then. This Is Now.

When we wrote The One to One Future in 1993, the Internet was still primarily a tool for college professors, and the Worldwide Web was just an interesting graphical user interface from some computer lab in Europe. Mass customization was still considered by some a contradiction in terms.

Since its publication, readers have turned to The One to One Future for insight into using the Internet to better communicate with their customers. More and more companies have realized that interacting with customers is no longer an option, but a competitive necessity. And now they have questions, How should an interactive company treat its customers? What objectives should a business set for the interactions that take place at its site? How can it measure success? Should different customers be treated differently? Is it sometimes necessary to reward customers for participating in Internet dialogue?

Parallel with development of the Worldwide Web and interactivity, we've seen a surge of mass customization technologies, from bicycles to blue jeans. And while customization might be a difficult and unusual capability for most firms, it is a total question mark for others. How do we customize this commodity product? Will a mass-customized pair of slacks ever cost less than a standardized pair?

The answers to these questions and many more are within the pages of The One to One Future. They are simple, but not obvious.

If anything, this book is even more useful today than it was three years ago. It is more in demand by marketing professionals. It is more popular than ever before in countries like Japan, Portugal, Spain, Germany, China, Korea, and Israel. It's not only more interesting to today's businesses, but more relevant.

And now it's more affordable.

User's Guide

The One to One Future: Building Relationships One Customer at a Time
Don Peppers and Martha Rogers, Ph.D.

The One to One Future addresses a way of doing business that wasn't feasible just ten years ago--although it is a direct reflection of business as it was practiced a  hundred and ten years ago! Technology has brought us back to a very old-fashioned way of doing business by making it possible to remember relationships with individual customers sometimes millions of them--one at a time, just as shop owners and craftspeople did with their few hundred customers 150 years ago.

We've developed the User's Guide to help you begin thinking in the 1:1 mindset and applying the principles and examples in Future to your own business. Before we begin asking the kinds of questions that we ask our clients, we will summarize some of the basic principles of 1:1 marketing.

The One to One Future: Lessons and Study Notes

* We are facing a paradigm shift of epic proportions--from the industrial era to the Information Age. As a result, we are witnessing a meltdown of the mass marketing paradigm that has governed business competition throughout the twentieth century. The new paradigm is one to one (1:1)--mandated by cheaper and faster data management, individually addressable and interactive media, and increasing capabilities for mass customization.

* Definition of 1:1 Marketing: The basis for 1:1 marketing is share of customer, not just market share. Instead of selling as many products as possible over the next sales period to whomever will buy them, the goal of the 1:1 marketer is to sell one customer at a time as many products as possible, over the lifetime of that customer's patronage. Mass marketers develop a product and try to find customers for that product. But 1:1 marketers develop a customer and try to find products for that customer.

* The ability to identify each customer makes it possible to calculate share of customer--the company's share of all the business this customer does--as well as lifetime value of each customer. One to one marketers can differentiate customers, and not just products, in order to ascertain and predict which customers are worth more than others, and how to meet each one's individual needs.

* Mass marketing companies know exactly how to manage products, and reward their successful product managers for selling more product and winning market share. But customer managers at 1:1 organizations know how to manage and grow their customers' value, and are rewarded for increasing the share of customers and lifetime value for each customer, one at a time.

* Mass marketing is adversarial. 1:1 marketing is collaborative.

* Each point of market share costs more to attain than the last point (because of increased discounts, as well as media weight) and thus each additional point of market share achieved comes at a lower profit margin. Just the opposite is true for each additional point of share of customer, which requires fewer introductory discounts and lower per-customer communication costs.

* The organizational structure required to implement 1:1 marketing will be based on customer management, rather than product or brand management. Under customer management, each customer is assigned to a customer portfolio, and is the responsibility of one (and only one) customer manager. Customer managers are evaluated and rewarded for current actions which improve the individual lifetime values of the individual customers in their portfolios.

* The store of the future will transcend geography by separating the information-exchange function and the inventory function of the traditional retailer. Channels will emerge as one of the most compelling management issues of the 1:1 future. Who will own the customer relationship--the manufacturer or the retailer?

* While the mass media advertising's goal is to acquire new customers, 1:1 marketers want and to build dialogues with--individual customers and establish relationships based on mutual learning.

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Table of Contents

Acknowledgments
Preface
Ch. 1 Back from the Future 3
Ch. 2 Share of Customer, Not Share of Market 18
Ch. 3 Collaborate with Your Customers 51
Ch. 4 Differentiate Customers, Not Just Products 95
Ch. 5 Economies of Scope, Not Economies of Scale 139
Ch. 6 Manage Your Customers, Not Just Your Products 174
Ch. 7 Engage Your Customers in Dialogue 208
Ch. 8 Take Products to Customers, Not Customers to Products 267
Ch. 9 Make Money Protecting Privacy, Not Threatening It 309
Ch. 10 Society at Light Speed 350
Notes 395
Index 432
Sample Currency Books by Fax! 442
Survey Response Form 444
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Sort by: Showing 1 – 2 of 1 Customer Reviews
  • Posted May 4, 2014

    Over 20 years ago, these authors wrote an incredibly prophetic b

    Over 20 years ago, these authors wrote an incredibly prophetic book, actually saw part of the future and told us what would happen. It was a marketing-focused work, but it examined the way people bought things, and how businesses dealt with those relationships.

    It talked about market disruption and discontinuous change, which when properly handled, is the way we grow up. But too many business are terrified of any change (which to them means an uncertain future) and want to remain the same, well, forever. And we know this does not work.

    The book says it's better to take products to customers, not customers to products (selling model for physical bookstores). If this sounds familiar, it's because it is the Amazon method, which caused enormous market disruption. Jeff Bezos must had read this and used it as a strategy planning guide. It's talking about putting the "store" on the home computer- years before this was a comfortable reality.

    So cool to see someone write with accuracy on how the world is changing and to see it has come true. Read this book- it will help you understand how the world has changed.

    Was this review helpful? Yes  No   Report this review
  • Anonymous

    Posted January 25, 2010

    No text was provided for this review.

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