INMA_A01.QXD

The IDIC approach to relationship building

An alternative process for building customer relationships online has been suggested by

Peppers and Rogers (1998) and Peppers et al. (1999). They suggest the IDIC approach as

a framework for customer relationship management and using the web effectively to

form and build relationships (Figure 6.8). Examples of the application of IDIC include:

1 Customer identification. This stresses the need to identify each customer on their first

visit and subsequent visits. Common methods for identification are use of cookies or

asking a customer to log on to a site. In subsequent customer contacts, additional cus-

tomer information should be obtained using a process known as ‘drip irrigation’.

Since information will become out-of-date through time, it is important to verify,

update and delete customer information.

2 Customer differentiation. This refers to building a profile to help segment customers.

Appropriate services are then developed for each customer. Activities suggested are

identifying the top customers, non-profitable customers, large customers that have

ordered less in recent years and customers that buy more products from competitors.

3 Customer interaction. These are interactions provided on-site such as customer service

questions or creating a tailored product. More generally, companies should listen to

the needs and experiences of major customers. Interactions should be in the cus-

tomer-preferred channel, for example e-mail, phone or post.

4 Customer communication. This refers to dynamic personalisation or mass customisa-

tion of content or e-mails according to the segmentation achieved at the acquisition

stage. This stage also involves further market research to find out if products can be

further tailored to meet customers’ needs.

APPROACHES TO IMPLEMENTING E-CRM

Drip irrigation
Collecting information
about customer needs
through their lifetime.

Figure 6.8 The elements of the IDIC framework

Communicate

Identify

Differentiate

Interact

• Incentivise visitors in order
  to be able to profile them and
  recognise them on repeat visits.


• Place customers in segments and
  develop differentiated content,
  offers and possibly products for each
  group.


• Communicate differentiated
  proposition.


• Learn more about customer needs
  through continuous dialogue,
  incentivised where necessary.