Using CRM systems to track customers and improve sales, marketing and customer service will be key weapons in the arsenal of successful companies this year. The winners will use these systems to improve their service levels and empower their sales force and marketing departments with customer analytics. CRM is the manner by which efficiencies in customer acquisition and retention budgets can be realized. Gone are freebies and, to a large extent, advertisement-based subsidies. The real surprise here may be customers won't mind the price increases.
Many online consumers shop for convenience.
When e-tailers market themselves on the value they provide in better selection, service and convenience, customers will be willing to pay for it. You will still be able to get great prices on the Net, of course, but the market leaders won't feel the need to discount everything to compete with the Joneses - because the Joneses aren't in business anymore. It was widely assumed that they didn't get it, were too slow and would have their lunch eaten by upstart pure plays. Today, many of those threatening dot-coms are bankrupt or in survival mode. Having avoided excessive spending on Internet initiatives and having been spared seeing their brands whipsawed by the stock market, traditional retailers are in good shape to build their e-channel over time.