What is CyberMarketing?
If we defi ne Direct Marketing as the discipline of
fi nding profi table customers and communicating
with them in a way that maximizes the business
relationship, then Internet Marketing is the
technological evolution of this discipline.
One of the foundations of Direct Marketing is the
concept of Customer Lifetime Value. This concept
values customers based on the future profi ts
that will be gained through a prolonged business
relationship with them.
Companies that apply the lifetime value principle
use it to fi gure out who their best customers are in
order to develop special marketing programs for
them. Acquiring customers is an investment for
the future, and success depends on two things:
1. Keeping the acquisition cost per customer below
the lifetime value.
2. Keeping customers a long time in order to
recover the investment and make a profi t.
Internet technology provides powerful tools that
will help you lower acquisition costs, and increase
the lifetime value of customers.
Direct marketers rely on testing and statistical
analysis in order to refi ne their marketing
activities aimed at acquiring and developing
customers. Through this trial and error approach
companies can fi gure out who their ideal
customers are, what they want, how they want it,
and when they want it.
CyberMarketing reduces the cost and timeframe of
this learning process signifi cantly because it allows
you to interact with customers directly, and lets
them tell you their needs and their terms on real
time, any time.
Outbound telemarketing and direct mail are
ways direct marketers deliver their message to
prospective consumers. All of these techniques
are not welcomed by most of them because they
consider it an invasion of their privacy.
When carried out correctly, CyberMarketing relies
on initiating contact in a way that is anticipated
by the customer, and the message is delivered
in a manner that is welcomed. Additionally, the