ELECTRONIC MARKETING

• Internet marketing, also referred to as i-marketing, web-

marketing, online-marketing, or e-Marketing, is the marketing
of products or services over the Internet.

• The Internet has brought media to a global audience. The

interactive nature of Internet marketing in terms of providing
instant response and eliciting responses, is a unique quality of
the medium. Internet marketing is sometimes considered to
have a broader scope because it not only refers to the
Internet, e-mail, and wireless media, but it includes
management of digital customer data and electronic
customer relationship management (ECRM) systems.

• Internet marketing ties together creative and technical

aspects of the Internet, including: design, development,
advertising, and sales.
• Internet Marketing Also Refers To The Placement Of
Media Along Different Stages Of The
Customer Engagement Cycle Through
Search Engine Marketing (SEM),
Search Engine Optimization (SEO), Banner Ads On
Specific Websites, E-mail Marketing, And Web 2.0
Strategies. In 2008 The New York Times, Working
With Comscore, Published An Initial Estimate To
Quantify The User Data Collected By Large Internet-
based Companies. Counting Four Types Of
Interactions With Company Websites In Addition To
The Hits From Advertisements Served From
Advertising Networks, The Authors Found The
Potential For Collecting Data Upward Of 2,500 Times
On Average Per User Per Month.[1]
 BUSINESS MODELS
Internet marketing is associated with several business models:
• E-Commerce — this is where goods are sold directly to consumers (B2C) or businesses
(B2B)

• Publishing — this is the sale of advertising

• Lead-based websites — this is an organization that generates value by acquiring sales

leads from its website

• Affiliate Marketing — this is process in which a product or service developed by one

person is sold by other active seller for a share of profits. The owner of the product
normally provide some marketing material (sales letter, affiliate link, tracking facility).

• Local Internet Marketing- this is the process of a locally based company traditionally
selling their products and utilizing the Internet to find and nurture relationships, later to
take those relationships offline.

• Black hat Marketing - this is a form of internet marketing which employs deceptive, less
than truthful methods to drive web traffic to a website or affiliate marketing offer. This
method sometimes includes spam, cloaking within search engine result pages, or routing
users to pages they didn't initially request.
 OTHER BUSINESS MODEL ON THE SPECIFIC
NEEDS
• One-to-one approach: The targeted user is typically browsing the Internet
alone therefore the marketing messages can reach them personally. This
approach is used in search marketing, where the advertisements are based on
search engine keywords entered by the user.
And now with the advent of Web 2.0 tools, many users can interconnect as
"peers."

• Appeal to specific Interest: Internet marketing and geo marketing places an

emphasis on marketing that appeals to a specific behaviour or interest, rather
than reaching out to a broadly-defined demographic. "On- and Off-line"
marketers typically segment their markets according to age group, gender,
geography, and other general factors. Marketers have the luxury of targeting
by activity and geolocation. For example, a kayak company can post
advertisements on kayaking and canoeing websites with the full knowledge
that the audience has a related interest.
Internet marketing differs from magazine
advertisements, where the goal is to appeal to the projected demographic of
the periodical, but rather the advertiser has knowledge of the target audience
—people who engage in certain activities (e.g., uploading pictures, contributing
to blogs)— so the company does not rely on the expectation that a certain
group of people will be interested in its new product or service.
• Geo targeting: Geo targeting (in internet marketing) and geo
marketing are the methods of determining the geolocation
(the physical location) of a website visitor with geo location,
and delivering different content to that visitor based on his or
her location, such as country, region/state, city, metro code/
zip code, organization, Internet Protocol (IP) address, ISP or
other criteria.

• Different content by choice: A typical example for different

content by choice in geo targeting is the FedEx website at
FedEx.com where users have the choice to select their
country location first and are then presented with a different
site or article content depending on their selection.

• Automated different content: With automated different

content in Internet marketing and geomarketing, the delivery
of different content based on the geographical geolocation
and other personal information is automated.
 ADVANTAGES
• Internet marketing is relatively inexpensive when compared to the ratio of
cost against the reach of the target audience. Companies can reach a wide
audience for a small fraction of traditional advertising budgets. The nature of
the medium allows consumers to research and purchase products and
services at their own convenience. Therefore, businesses have the advantage
of appealing to consumers in a medium that can bring results quickly. The
strategy and overall effectiveness of marketing campaigns depend on
business goals and cost-volume-profit (CVP) analysis.

• Internet marketers also have the advantage of measuring statistics easily and
inexpensively. Nearly all aspects of an Internet marketing campaign can be
traced, measured, and tested. The advertisers can use a variety of methods:
pay per impression, pay per click, pay per play, or pay per action. Therefore,
marketers can determine which messages or offerings are more appealing to
the audience. The results of campaigns can be measured and tracked
immediately because online marketing initiatives usually require users to
click on an advertisement, visit a website, and perform a targeted action.
Such measurement cannot be achieved through billboard advertising, where
an individual will at best be interested, then decide to obtain more
information at a later time..
• Because exposure, response, and overall efficiency of
Internet media are easier to track than traditional off-
line media—through the use of web analytics for
instance—Internet marketing can offer a greater
sense of accountability for advertisers. Marketers and
their clients are becoming aware of the need to
measure the collaborative effects of marketing (i.e.,
how the Internet affects in-store sales) rather than
soiling each advertising medium. The effects of
multichannel marketing can be difficult to determine,
but are an important part of ascertaining the value of
media campaigns.
 LIMITATIONS
• Internet marketing requires customers to use newer
technologies rather than traditional media. Low-speed
Internet connections are another barrier. If companies build
large or overly-complicated websites, individuals connected
to the Internet via dial-up connections or mobile devices
experience significant delays in content delivery.
• From the buyer's perspective, the inability of shoppers to
touch, smell, taste or "try on" tangible goods before making
an online purchase can be limiting. However, there is an
industry standard for e-commerce vendors to reassure
customers by having liberal return policies as well as
providing in-store pick-up services.
• A survey of 410 marketing executives listed the following
barriers to entry for large companies looking to market
online: insufficient ability to measure impact, lack of internal
capability, and difficulty convincing senior management.
 SECURITY CONCERNS
• Information security is important both to companies and consumers that
participate in online business. Many consumers are hesitant to purchase
items over the Internet because they do not trust that their personal
information will remain private. Encryption is the primary method for
implementing privacy policies.
• Recently some companies that do business online have been caught giving
away or selling information about their customers. Several of these
companies provide guarantees on their websites, claiming that customer
information will remain private. Some companies that purchase customer
information offer the option for individuals to have their information
removed from the database, also known as opting out. However, many
customers are unaware if and when their information is being shared, and
are unable to stop the transfer of their information between companies if
such activity occurs.
• Another major security concern that consumers have with e-commerce
merchants is whether or not they will receive exactly what they purchase.
Online merchants have attempted to address this concern by investing in
and building strong consumer brands (e.g., Amazon.com, eBay,
Overstock.com), and by leveraging merchant/feedback rating systems and e-
commerce bonding solutions. All of these solutions attempt to assure
consumers that their transactions will be free of problems because the
merchants can be trusted to provide reliable products and services.
Additionally, the major online payment mechanisms (credit cards, PayPal,
Google Checkout, etc.) have also provided back-end buyer protection
systems to address problems if they actually do occur.
 BROADBAND-INDUCED TRENDS
• Online advertising techniques have been dramatically affected by
technological advancements in the telecommunications industry. In fact,
many firms are embracing a new paradigm that is shifting the focus of
online advertising from simple text ads to rich multimedia experiences.
As a result, advertisers can more effectively engage in and manage online
branding campaigns, which seek to shape consumer attitudes and
feelings towards specific products. The critical technological development
fueling this paradigm shift is Broadband.
• In March 2005, roughly half of all American homes were equipped with
broadband technology. By May 2008, broadband technologies had
spread to more than 90% of all residential Internet connections in the
United States. When one considers a Nielsen’s study conducted in June
2008, which estimated the number of U.S. Internet users as 220,141,969,
one can calculate that there are presently about 199 million people in the
United States utilizing broadband technologies to surf the Web.
• As a result, all 199 million members of this burgeoning market have the
ability to view TV-like advertisements with the click of a mouse. And to
be sure, online advertisers are working feverishly to design rich
multimedia content that will engender a “warm-fuzzy” feeling when
viewed by their target audience. As connection speeds continue to
increase, so will the frequency of online branding campaigns.
 EFFECTS ON INDUSTRIES
• The number of banks offering the ability to perform banking tasks over
the internet has also increased. Online banking is appeals to customers
because it is often faster and considered more convenient than visiting
bank branches. Currently over 150 million U.S. adults now bank online,
with increasing Internet connection speed being the primary reason
for fast growth in the online banking industry. Of those individuals
who use the Internet, 44 percent now perform banking activities over
the Internet.
• Internet auctions have become a multi-billion dollar business. Unique
items that could only previously be found at flea markets are now
being sold on Internet auction websites such as eBay. Specialized
e-stores sell an almost endless amount of items ranging from antiques,
movie props, clothing, gadgets and much more. As the premier online
reselling platform, eBay is often used as a price-basis for specialized
items. Buyers and sellers often look at prices on the website before
going to flea markets; the price shown on eBay often becomes the
item's selling price. It is increasingly common for flea market vendors
to place a targeted advertisement on the Internet for each item they
are selling online, all while running their business out of their homes.
• In addition to the major effect internet marketing
has had on the technology industry, the effect on
the advertising industry itself has been profound.
In just a few years, online advertising has grown
to be worth tens of billions of dollars annually.
PricewaterhouseCoopers reported that
US$16.9 billion was spent on Internet marketing
in the U.S. in 2006.
• This has had a growing impact on the
electoral process. In 2008 candidates for
President heavily utilized Internet marketing
strategies to reach constituents. During the 2007
primaries candidates added, on average, over
500 social network supporters per day to help
spread their message.President Barack Obama
raised over US$1 million in a single day during his
extensive Democratic candidacy campaign,
largely due to online donors.
 DIRECT MARKETING
• Direct marketing is a sub-discipline and type of marketing.
There are two main definitional characteristics which
distinguish it from other types of marketing. The first is that it
attempts to send its messages directly to consumers, without
the use of intervening media. This involves commercial
communication (direct mail, e-mail, telemarketing) with
consumers or businesses. The second characteristic is that it
is focused on driving a specific "call-to-action." This aspect of
direct marketing involves an emphasis on trackable,
measurable, positive responses from consumers (known
simply as "response" in the industry) regardless of medium.
• If the advertisement asks the prospect to take a specific
action, for instance call a free phone number or visit a
website, then the effort is considered to be direct response
advertising.
 BENEFITS AND DRAWBACKS
• Direct marketing is attractive to many marketers, because in many cases its
positive effect (but not negative results) can be measured directly. For
example, if a marketer sends out one million solicitations by mail, and ten
thousand customers can be tracked as having responded to the promotion,
the marketer can say with some confidence that the campaign led directly to
the responses. The number of recipients who are offended by the junk
mail/spam, however, is not easily measured. By contrast, measurement of
other media must often be indirect, since there is no direct response from a
consumer. Measurement of results, a fundamental element in successful
direct marketing, is explored in greater detail elsewhere in this article. Yet
since the start of the Internet-age the challenges of Chief Marketing Officers
(CMOs) are tracking direct marketing responses and measuring results.

• While many marketers like this form of marketing, some direct marketing
efforts using particular media have been criticized for generating unwanted
solicitations. For example, direct mail that is irrelevant to the recipient is
considered junk mail, and unwanted email messages are considered spam.
Some consumers are demanding an end to direct marketing for privacy and
environmental reasons,which direct marketers are able to provide by using
"opt out" lists, variable printing and more targeted mailing lists.
• Many of the world's largest marketing and
advertising agencies started off as direct
marketing specialist agencies. Due to declining
client budgets and the proliferation of audiences,
many of these agencies have diversified and
expanded to offer "integrated marketing" rather
than simply selling DM services. The term
“Integrated Marketing” is used by agencies to
describe how they sell the complete marketing
communications package, covering DM, digital,
SP, PR, events and advertising.
 CHANNELS
• Direct mail: The most common form of direct marketing is
direct mail, sometimes called junk mail, used by advertisers
who send paper mail to all postal customers in an area or to
all customers on a list.

• Any low-budget medium that can be used to deliver a

communication to a customer can be employed in direct
marketing. Probably the most commonly used medium for
direct marketing is mail, in which marketing communications
are sent to customers using the postal service. The term
direct mail is used in the direct marketing industry to refer to
communication deliveries by the Post Office, which may also
be referred to as "junk mail" or "admail" or "crap mail" and
may involve bulk mail.
• Telemarketing: The second most common form of direct
marketing is telemarketing, in which marketers contact
consumers by phone. The unpopularity of cold call
telemarketing (in which the consumer does not expect or
invite the sales call) has led some US states and the US federal
government to create "no-call lists" and legislation including
heavy fines. This process may be outsourced to specialist call
centres.
• Email Marketing :Email Marketing may have passed
telemarketing in frequency at this point, and is a third type of
direct marketing. A major concern is spam, which actually
predates legitimate email marketing. As a result of the
proliferation of mass spamming, ISPs and email service
providers have developed increasingly effective programs.
These filters can interfere with the delivery of email
marketing campaigns, even if the person has subscribed to
receive them, as legitimate email marketing can possess the
same hallmarks as spam.
• Door to Door Leaflet Marketing: services are used
extensively by the fast food industries, and many
other business focusing on a local catchment
Business to consumer business model, similar to
direct mail marketing, this method is targeted purely
by area, and costs a fraction of the amount of a mail
shot due to not having to purchase stamps,
envelopes or having to buy address lists and the
names of home occupants.
• Broadcast faxing:A fourth type of direct marketing,
broadcast faxing, is now less common than the other
forms. This is partly due to laws in the United States
and elsewhere which make it illegal.
• Voicemail Marketing :A fifth type of direct marketing has emerged out of the
market prevalence of personal voice mailboxes, and business voicemail
systems. Due to the ubiquity of email marketing, and the expense of direct mail
and telemarketing, voicemail marketing presented a cost effective means by
which to reach people directly, by voice.
• Abuse of consumer marketing applications of voicemail marketing resulted in
an abundance of "voice-spam", and prompted many jurisdictions to pass laws
regulating consumer voicemail marketing.
• More recently, businesses have utilized guided voicemail (an application where
pre-recorded voicemails are guided by live callers) to accomplish personalized
business-to-business marketing formerly reserved for telemarketing. Because
guided voicemail is used to contact only businesses, it is exempt from Do Not
Call regulations in place for other forms of voicemail marketing.
• Couponing: Couponing is used in print media to elicit a response from the
reader. An example is a coupon which the reader cuts out and presents to a
super-store check-out counter to avail of a discount. Coupons in newspapers
and magazines cannot be considered direct marketing, since the marketer
incurs the cost of supporting a third-party medium (the newspaper or
magazine); direct marketing aims to circumvent that balance, paring the costs
down to solely delivering their unsolicited sales message to the consumer,
without supporting the newspaper that the consumer seeks and welcomes.
• Direct response television marketing
Direct marketing on TV (commonly referred to as DRTV) has two basic forms: long
form (usually half-hour or hour-long segments that explain a product in detail and
are commonly referred to as infomercials) and short form which refers to typical
0:30 second or 0:60 second commercials that ask viewers for an immediate
response (typically to call a phone number on screen or go to a website).
• TV-response marketing—i.e. infomercials—can be considered a form of direct
marketing, since responses are in the form of calls to telephone numbers given on-
air. This both allows marketers to reasonably conclude that the calls are due to a
particular campaign, and allows the marketers to obtain customers' phone
numbers as targets for telemarketing. Under the Federal Do-Not-Call List rules in
the US, if the caller buys anything, the marketer would be exempt from Do-Not-
Call List restrictions for a period of time due to having a prior business relationship
with the caller. Major players are firms like QVC, Thane Direct, and Interwood
Marketing Group then cross-sell, and up-sell to these respondents.
• One of the most famous DRTV commercials was for Ginsu Knives by Ginsu
Products, Inc. of RI. Several aspects of ad, such as it's use of adding items to the
offer and the guarantee of satisfaction were much copied and came to be
considered part of the formula for success with short form direct response TV ads
(DRTV)
• Direct selling: Direct selling is the sale of products by face-to-
face contact with the customer, either by having salespeople
approach potential customers in person, or through indirect
means such as Tupperware parties.
• Integrated Campaigns: For many marketers, a
comprehensive direct marketing campaign employs a mix of
channels. It is not unusual for a large campaign to combine
direct mail, telemarketing, radio and broadcast TV, as well as
online channels such as email, search marketing, social
networking and video. In a report[5] conducted by the Direct
Marketing Association, it was found that 57% of the
campaigns studied were employing integrated strategies. Of
those, almost half (47%) launched with a direct mail
campaign, typically followed by e-mail and then
telemarketing.
 Online Customer Service
• In a traditional brick-and-mortar store, if a
customer needs help, he or she can look
around and find someone. In e-commerce,
obviously, that's not an option. So how can
you provide customer service as a part of your
online sales experience? It's probably easier
than you think.

• There are several ways to provide high-

quality customer service with a minimum
amount of work.
 Live Chat
• Live chat is probably the best option for most start-up
e-businesses. It gives you the option of providing
real-time help to more than one customer at a time.
The downside is that you or your employees have to
staff the chat utility. Make sure that your site clearly
states when representatives are available to help.
Once you have set your live chat hours, do your best
to stick to them.
• Using a live chat utility is much like instant
messaging. After you install the utility on your site,
customers can simply click on a link to contact you
immediately. Normally, a small browser window will
open, and you can communicate with your customer
in real time.
 Order Tracking
• Many of the inquiries that you'll receive from customers will be about the status of
their orders. Automating the order-tracking process can free up time to manage
the more pressing aspects of your business.
• Many shopping cart programs offer integrated order tracking, which can
dramatically reduce the amount of email you receive from customers who are
looking for their merchandise.
• Once you ship an order, you will mark it as shipped and enter the appropriate
tracking information into your shopping cart application. Most shopping carts will
even generate an automated email message to provide the customer with the
appropriate tracking information. If your cart supports notifications, you can set
your cart to notify the customer automatically when the status of their order
changes -- from pending to shipped, or from shipped to deliver -- which will reduce
the amount of work that you have to do.
• Just because your customer receives the order does not mean that your work is
Just because your customer receives the order does not mean that your work is
done. Invariably, some percentage of merchandise will be damaged in shipping, or
a customer may need to exchange a product or have some other concern.
Implementing a support-ticket process can further streamline the support process.
• Support ticket applications are fairly simple: customers visit your site, click a
support link, and are prompted to submit their order information. The support
program will send you the information, and you can craft your response. This
system works very well if you have a lot of customers. When your customer logs
back in to the support area, he or she will receive your response, along with the
appropriate return or exchange instructions.
 Phone Support
• If all else fails, there's always the telephone. It can be
expensive and time-consuming to provide phone support,
but sometimes it's the best way to communicate with your
clients. You may be able to hash out in two or three minutes
on the phone what it would take 10 emails to achieve.
• Customers also appreciate live phone support, and it can
add a personal touch to your e-business. Most companies
can't afford to provide 24-hour phone support, so don't
forget to prominently post your phone hours. Reiterate
these hours on your voice mail system or answering
machine.
• Customer support for online businesses isn't really that
different from traditional business support. As long as you
take care of your customers, they will keep coming back.
 Top 10 Customer Service Mistakes
• Strong customer service is a valuable asset, especially
in today's high-tech-oriented, increasingly impersonal
business world. Therefore, if you are aware of
common customer service mistakes and avoid them,
you may strengthen your position in a competitive
market.

• Untrained staff. It does not matter whether you have

two or 200 employees, you must train everyone in the
art of customer service. Customers and clients will not
tolerate rudeness, incorrect information, or apathy on
the part of your staff. Not training the staff — and this
should include everyone — is a major mistake made
by too many businesses.
• Trying to win the argument. It is worth remembering that it
takes five times more effort and cost to gain one new customer
as it takes to maintain one current customer. Therefore, to win
an argument and lose a steady customer, you are punishing
your business.

• Inaccessibility. If you want to see repeat business, you need to

be accessible to your customers. If it is difficult to contact the
customer service department or speak to a manager, customers
may not return. Many businesses, especially on the Internet, try
to maintain a distance from their customers. This rarely works.
Check out Online Customer Service Basics for tips on a positive
online customer service experience.

• Standing by your policy. While the clerk who is scared that he or

she may lose their job can say "That's our policy," customer
service representatives and managers should be able to find
ways to bend policies to build customer relationships. The
phrase "If I do that for you, I'll have do to it for everyone," is one
of the fastest way to lose customers.
• Unfulfilled promises. If you promise a customer that something
would be ready by Thursday, then it should be there by Thursday.
When you cannot make this happen, do not make excuses; the only
words you need to remember are "We're sorry," backed up by an
extra effort to make the customer happy.

• Poor record keeping. If you keep referring to Mrs. Johnson of

Jackson Avenue as Mrs. Jackson of Johnson Avenue, you can be sure
that she will not continue to do business with your company. While
any business can make a mistake, constantly misspelled names and
similar foul-ups do not encourage regular customers to return.

• The runaround. When someone calls for customer service, they

expect a service representative to be the first or second person to
whom they speak, following a receptionist perhaps. People do not
like being passed from one person to another or sent from one
department to another in a retail location. Passing the buck is akin to
passing the customer on to your competitor.
• Email/online cop outs. Since email is impersonal, many
businesses send a form letter or a programmed response that
answers 10 common FAQs, none of which may apply to a
particular customer. Other businesses simply ignore customer
complaints hoping that the customer will simply forget the
issue. These are email cop outs, or excuses for not providing
adequate customer service. It is very simple for a customer
representative to respond to each inquiry in a timely fashion.

• Failure to listen. Customer service representatives routinely

do not listen closely to customers. Typically they respond with
an answer that does not match the problem because they
were not paying attention. Customer relation representatives
need to be trained, particularly in the art of listening and even
taking notes.
• Forgetting the basics. "Please," "thank you," "we're sorry
about the inconvenience," and so on are simple phrases that
cost nothing, take little effort, and win big points.
 10 Rules for Great Customer Service
• Think about the last time you had a negative buying
experience. Did an e-commerce site fail to respond to your
email query? Did a sales associate at your neighborhood
computer store fail to know the difference between a floppy
drive and a hard drive? Perhaps you were left on hold for an
inordinate amount of time when you called a mail-order
company's toll-free line.
• Negative buying experiences are almost always linked to
shoddy customer service. Even though most businesses claim
that they put people first, it's rare to find good customer
support.
• But customer service isn’t extinct. In fact, after consumer
groups and the media took potshots last year at e-commerce
sites for leaving customers in the lurch, many businesses
began to focus more attention on their service.

• Strong customer service is a business essential. Providing it

isn’t as difficult if you and your employees achieve these 10
basic rules:
• Commit to quality service. Everyone in the company needs to
be devoted to creating a positive experience for the
customer. Always try to go above and beyond customer
expectations.

• Know your products. Convey an articulate and in-depth

knowledge of products and services to win customer trust
and confidence. Know your company’s products, services, and
return policies inside and out. Try to anticipate the types of
questions that customers will ask. Update and amend your
FAQ page frequently.

• Know your customers. Try to learn everything you can about

your customers in order to tailor your service approach to
their needs and buying habits. Talk to customers about their
experience with your company, and listen to their complaints.
In this way, you can get to the root of customer
dissatisfaction.
• Treat people with courtesy and respect. Remember that every time that
you, your employees, and your colleagues make contact with a customer
— whether it’s by email, phone, written correspondence, or a face-to-face
meeting — the interaction leaves an impression with that customer. Use
conciliatory phrases — "Sorry to keep you waiting," "Thanks for your
order," "You’re welcome," and "It’s been a pleasure helping you" — to
demonstrate not only your commitment to customer satisfaction but your
dedication to courtesy.

• Never argue with a customer. You know very well that the customer isn’t
always right. However, it is important that you do not focus on the
missteps of a particular situation; instead, concentrate on how to fix it.
Research shows that 7 out of 10 customers will do business with a
company again if that business resolves a complaint in their favor.

• Don’t leave customers in limbo. Repairs, callbacks, and emails need to be

handled with a sense of urgency. Customers want immediate resolution,
and if you can give it to them, you will probably win their repeat business.
Research shows that the instance of repeat business goes up to 95
percent when complaints are resolved on the spot.
• Always provide what you promise. Fail to do this and you’ll lose both credibility and
customers. If you guarantee a quote within 24 hours, get the quote out in a day or less. If
and when you neglect to make good on your promise, apologize to the customer and
offer some type of compensation, such as a discount or free delivery. Overall, only make
promises that you are confident that you and your business can keep.

• Assume that your customers tell the truth. Even though it may appear that customers
lie to manipulate a situation to their advantage, it is to your advantage to give them the
benefit of the doubt. The majority of customers don’t like to complain; in fact, they’ll go
out of their way — perhaps all the way to a competitor — to avoid it. If you hear
unhappy rumblings from your customers, take their complaints to heart and do your
best to appease their dissatisfaction.

• Focus on making customers — not on sales. Salespeople, especially those who get paid
on commission, sometimes focus on the volume instead of on the quality of the sale.
Remember that to keep a customer’s business is more important than to close a sale.
Research shows that it costs six times more to attract a new customer than it does to
keep an existing one. Moreover, happy customers are the best and most effective way to
find new customers. To ensure that you accurately track your customers, your business
might want to invest in CRM software. Read our overview, to get a handle on that type
of program.

• Make it easy to buy. The buying experience in your store, on your Web site, or through
your catalog should be as easy as possible. Eliminate unnecessary paperwork and forms,
help people to find what they need, explain how products work, and do whatever else
you can to facilitate transactions.