A01 chaf6542 06 se fm indd

Part 2  Strategy and applications

  Customer  extension 

  

Customer extension

  has the aim of increasing the  lifetime

 

value  of the customer to the com-

pany by encouraging  cross-  sales, for example an Egg credit card customer may be offered 

the option of a loan or a deposit account. When a customer returns to a website this is an 

opportunity for  cross-  selling and such offers can be communicated. Direct email is also an 

excellent way for informing a customer about other company products and it is also useful in 

encouraging repeat visits by publicising new content or promotions. Email is vitally impor-

tant to achieving online CRM as it is a push medium where the customer can be reminded 

why they should visit the website.     

 Many companies are now only proactively marketing to favoured customers. Seth Godin 

(1999) says, ‘ Focus on share of customer, not market share – fi re 70 per cent of your customers 

and watch your profi ts go up! ’ One UK financial services provider has analysed characteristics 

of  high-  churn-  rate customers, and when a new prospect fitting this profile contacts the call 

centre they are actively discouraged. Using these techniques it is possible to increase share of 

customer.