Permission Marketing is introduced by Seth Godin used in marketing in general and e-marketing specifically. According to Seth Godin, Permission Marketing is the privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them.
Sometimes, customers ignore marketing, so that’s why many experts said that to treat customer respectively is the best way to earn their attention. Nowadays, it’s important to know that customers’ satisfaction and attention is the best power to drive our marketing strategy become successful. Seth Godin stated that permission marketing is an old concept with a new relevance because Permission Marketing can take advantage of new technology better than other forms of marketing. Permission Marketing can use internet to boost it method through direct mail and it is known that internet offered low cost. Permission Marketing is the tool that unlocks the power of the internet. The leverage it brings to this new medium, combined with the pervasive clutter that infects the internet and virtually every other medium makes Permission Marketing the most powerful trend in marketing for the next decade.
Permission Marketing is an investment. Permission Marketing lets you turn strangers, folks that might otherwise ignore your unsolicited offer, into people willing to pay attention when your message arrives in expected, appreciated way. Permission Marketing encourages customer to participate in a long-term, interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant message.
Permission Marketing demands that in addition to looking downstream, marketers now look upstream. The challenge facing most companies is that they notice people too late. The process of getting new customers needs to be reengineered, so that there are five step cycle to obtain prospect: Strangers – Friends – Customer – Loyal Customer – Former Customer. Today, most marketers don't notice, track or interact with people until they are a customer. And some don't even pay close attention until the consumer becomes a loyal customer. Unfortunately, a few don't notice their customers until they become disgruntled former customers.
It's essential, given the high cost of talking to strangers, that marketers move their focus of attention up the stream. They need to have a process in place that nurtures total strangers from the moment they first indicate an interest.
At that moment, a suite of marketing messages must begin to be applied. The goal is to teach, cajole and encourage this stranger to become a friend. And once he/she becomes a friend, to apply enough focused marketing to create a customer.
Permission Marketing allows a marketer to speak to prospects as friends, not strangers. This personalized, anticipated, frequent, and relevant communication has infinitely more impact than a random message displayed in a random place at a random moment.
Permission Marketing is anticipated, personal, and relevant. Its means:
Permission Marketing is like dating a customer. To date customer, there are five steps to go:
So, this is important to B2C to use Permission Marketing to reach the customers. The conclusions about the description above, Permission Marketing give benefit to not only B2C, but also to other types. The benefits are:
The way to do permission marketing can be shown like this below picture:
To talk with a stranger, get their attention and permissions, after that, don’t forget to do a tracking to maintain relationship. This way is starting even they are just a strangers.
Permission Intensity and Models
Consumers define the boundaries of their relationship with firms in such businesses. In some cases, they give the business tremendous leeway and in others the firms are held on a tight leash. Formally, permission intensity is defined as the degree to which a consumer empowers a marketer in the context of a communicative relationship. High permission intensity is characterized by three factors: high information quantity, high information quality and information usage flexibility.
There are four business models of Permission Marketing below:
Model 1. Direct relationship maintenance
Very little additional information is asked for and hence, there is no sophisticated targeting being conducted here. This is seen as an additional service offered to customers to maintain a strong relationship
Model 2. Permission partnership
The consumer provides a portal or media site with the permission to send him or her promotional offers. After receiving this permission, the intermediary alerts its partners who wish to send out promotional offers. All consumers signed on receive all offers
Model 3. Ad market
A consumer provides an infomediary with detailed information about his or her preferences and interests. The infomediary then uses this information to identify advertisers. The ads supplied by these advertisers are then carefully targeted to be consistent with the consumer’s tastes. Consumers win by reducing clutter and are paid to participate in the process, advertisers find target customers for their promotions with lower cost of targeting and the infomediary makes a profit by facilitating this exchange.
Model 4. Permission pool
Different consumers provide different firms with the permission to send them promotional offers. These firms pool the information provided by the consumer and then promotional messages are sent out targeting this larger pool.
The difference between model 1 and the rest is that in the former, an individual firm directly transacts with its customers while in Model 2, an intermediary such as a portal plays this role and in Models 3 and 4, an infomediary matches consumer demand for ads with firm ad supply. Naturally, since it may be inefficient for a consumer to sign up with several firms in the manner of model 1, the other models are likely to be more common.
Example:
SAP Newsletter
Sources:
Sometimes, customers ignore marketing, so that’s why many experts said that to treat customer respectively is the best way to earn their attention. Nowadays, it’s important to know that customers’ satisfaction and attention is the best power to drive our marketing strategy become successful. Seth Godin stated that permission marketing is an old concept with a new relevance because Permission Marketing can take advantage of new technology better than other forms of marketing. Permission Marketing can use internet to boost it method through direct mail and it is known that internet offered low cost. Permission Marketing is the tool that unlocks the power of the internet. The leverage it brings to this new medium, combined with the pervasive clutter that infects the internet and virtually every other medium makes Permission Marketing the most powerful trend in marketing for the next decade.
Permission Marketing is an investment. Permission Marketing lets you turn strangers, folks that might otherwise ignore your unsolicited offer, into people willing to pay attention when your message arrives in expected, appreciated way. Permission Marketing encourages customer to participate in a long-term, interactive marketing campaign in which they are rewarded in some way for paying attention to increasingly relevant message.
Permission Marketing demands that in addition to looking downstream, marketers now look upstream. The challenge facing most companies is that they notice people too late. The process of getting new customers needs to be reengineered, so that there are five step cycle to obtain prospect: Strangers – Friends – Customer – Loyal Customer – Former Customer. Today, most marketers don't notice, track or interact with people until they are a customer. And some don't even pay close attention until the consumer becomes a loyal customer. Unfortunately, a few don't notice their customers until they become disgruntled former customers.
It's essential, given the high cost of talking to strangers, that marketers move their focus of attention up the stream. They need to have a process in place that nurtures total strangers from the moment they first indicate an interest.
At that moment, a suite of marketing messages must begin to be applied. The goal is to teach, cajole and encourage this stranger to become a friend. And once he/she becomes a friend, to apply enough focused marketing to create a customer.
Permission Marketing allows a marketer to speak to prospects as friends, not strangers. This personalized, anticipated, frequent, and relevant communication has infinitely more impact than a random message displayed in a random place at a random moment.
Permission Marketing is anticipated, personal, and relevant. Its means:
- Anticipated – People look forward to hearing from you.
- Personal – the messages are directly related to the individual.
- Relevant – the marketing is about something the prospect interest in.
Permission Marketing is like dating a customer. To date customer, there are five steps to go:
- Offer the prospect an incentive to volunteer
Every marketer must offer prospective customer an incentive for volunteering. The incentive you offer to the customer can range from information, to entertainment, to a sweepstakes, to outright payment for the prospect's attention. But the incentive must be overt, obvious and clearly delivered. - Using the attention offered by the prospect, offer a curriculum over time, teaching the customer about product or service
- Reinforce the incentive to guarantee that the prospect maintains permission
- Offer additional incentives to get even more permission from the customer
- Over time, leverage the permission to change customer behavior toward profits
So, this is important to B2C to use Permission Marketing to reach the customers. The conclusions about the description above, Permission Marketing give benefit to not only B2C, but also to other types. The benefits are:
- Permission Marketing let us to have a permission from customer and it help us to free from many bulk email and its not recognized as a spam since they choose to “opt-in” our newsletter.
- Giving us the effective marketing communication similarly with one-to-one marketing as our marketing message is sent to the appropriate customers.
- The growth in technology let Permission Marketing to be done in a low cost than other types of marketing strategies.
- Permission Marketing give the opportunity to have a long lived in the industry, because its such an investment to change the strangers into our loyal customer.
- Using Permission Marketings, Marketers can get trust from customers. B2C industry using internet media in their transaction really needs trust from their customers and Permission Marketing can accommodate it.
The way to do permission marketing can be shown like this below picture:
To talk with a stranger, get their attention and permissions, after that, don’t forget to do a tracking to maintain relationship. This way is starting even they are just a strangers.
Permission Intensity and Models
Consumers define the boundaries of their relationship with firms in such businesses. In some cases, they give the business tremendous leeway and in others the firms are held on a tight leash. Formally, permission intensity is defined as the degree to which a consumer empowers a marketer in the context of a communicative relationship. High permission intensity is characterized by three factors: high information quantity, high information quality and information usage flexibility.
There are four business models of Permission Marketing below:
Model 1. Direct relationship maintenance
Very little additional information is asked for and hence, there is no sophisticated targeting being conducted here. This is seen as an additional service offered to customers to maintain a strong relationship
Model 2. Permission partnership
The consumer provides a portal or media site with the permission to send him or her promotional offers. After receiving this permission, the intermediary alerts its partners who wish to send out promotional offers. All consumers signed on receive all offers
Model 3. Ad market
A consumer provides an infomediary with detailed information about his or her preferences and interests. The infomediary then uses this information to identify advertisers. The ads supplied by these advertisers are then carefully targeted to be consistent with the consumer’s tastes. Consumers win by reducing clutter and are paid to participate in the process, advertisers find target customers for their promotions with lower cost of targeting and the infomediary makes a profit by facilitating this exchange.
Model 4. Permission pool
Different consumers provide different firms with the permission to send them promotional offers. These firms pool the information provided by the consumer and then promotional messages are sent out targeting this larger pool.
The difference between model 1 and the rest is that in the former, an individual firm directly transacts with its customers while in Model 2, an intermediary such as a portal plays this role and in Models 3 and 4, an infomediary matches consumer demand for ads with firm ad supply. Naturally, since it may be inefficient for a consumer to sign up with several firms in the manner of model 1, the other models are likely to be more common.
Example:
SAP Newsletter
Sources:
Wednesday, May 13, 2009 |
Category:
e-business,
marketing,
permission,
permission marketing
|
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