The Customer Loyalty Solution : What Works (and What Doesnt) in Customer Loyalty Programs

What do these case studies tell us about how database marketing and the Web are helping suppliers to make their customers profitable?

• In the first case, CSC decided to analyze the firm’s customer database, append D&B information, and determine the next best product and top 10 prospects for 1800 independent agents.

• BenefitMall.com used the Web to help thousands of independent brokers determine the best benefit systems for their customers, signing up 2500 new brokers in the process.

• Isuzu used the Web to provide its dealers with customized postcards to be mailed to prospects in their area.

• Radisson Hotels used the Web to encourage 80,000 independent travel agents to increase bookings by $4.5 million, benefiting both the agents and Radisson.

• Intel used the Web to conduct vendor-managed inventory for Dell, thus reducing Dell’s inventory to 8 days, while Dell’s competitor Compaq had an inventory level of 3 weeks.

• FedEx used the Web to help National Semiconductor cut the time required for delivery of parts to customers by 3 weeks per order and cut delivery costs in half.

None of these activities would have been possible without a customer database or without the Web. The combination of the two has created a powerful shift in the relationships between suppliers and their customers.