What are the pitfalls of one-to-one/relationship marketing? Given the constant intrusion in their lives, is there a possibility of consumer backlash in the long term?
A. A lot of people start loyalty programmes (the outward face of relationship marketing), reward programmes with the intention of retaining customers. But one has to be careful that rewards are not a substitute for customer satisfaction. Just by having a strong reward programme you cannot expect customers to be happy and stay with the product. The other thing is what I call the 901st transaction. That is, you can have the best loyalty or customer retention programme, but if you are not tracking the customer on the last experience with your product or service, the best programme may fail. Again, do not start a programme you cannot sustain. The worst thing you can do is build the expectation of the customer and then not deliver.