The advent of Internet and wireless technology has expanded the effectiveness of one-to-one marketing. While the principles of one-to-one marketing is not new, technology has made it more cost-effective to:
Identify and profile customer segments
Send only specific messages to targeted customer segments
Interact with customers in a meaningful manner
Allow customers to spread the message among themselves speedily
There's a new powerful marketing medium in SMS. SMS messages can arrive the instant they are sent. You have the ability to create campaigns that are time-sensitive and relevant to customers.
Mass advertising is gradually becoming ineffective. Advertising, while a good medium for branding and imaging, is limited to an emotional need and not a functional need. Customers are better affected if the messages sent are relevant to their lives and will only agree to receive marketing messages if the message is of value to them.
At the same time, the company can educate customers about its brand and its products and services while retrieving valuable data and building a customer database.
A RM20 million budget spent on mass advertising doesn't necessarily reach everyone; some customers may choose to (and do) ignore it. A RM20 million budget
for advertising can be utilised to send approximately 100 million personalised SMS messages (where each SMS message is highly relevant to the receiver).
Would every individual spend enough to justify the expenses thrown at him or her?
Wouldn't it be more efficient to spend, say, RM30 worth of ads on a retiree and more than RM300 on a chief executive officer?