The 'Segment of One' marketing describes tracking the task and preferences of a solitary possible customer then customizing items or advertisements for that individual according to their habits. The research suggests that when a person senses a business being respectful or trying to comprehend their problems, the individual begins to move along the engagement journey from interest to commitment. It's evident that clients are showing an increasing inclination for brands to adopt a more personalized approach towards them. To connect with the future generation of customers, marketers must think about the next generation of client interaction and what that indicates in practice. Segment of One marketing has been very easy to use in today's era because of the new opportunities opening due to the widespread use of internet that is allowing companies to collect data throughout multiple sources. In this chapter, an attempt will be made to recognize some of the most effective methods being adopted by the top companies under this Segment-of-One marketing in order to drive business growth.
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Core product or service difference is becoming more challenging in many sectors today, as competitors may simply replicate, and match product offers. We've seen an incredible explosion of offers and line expansions inside product and service categories. In an increasingly global marketplace, there is also the threat of foreign competition. Consumers have more choices than ever before and standing out has become increasingly difficult. Consumers have less time to make a buying decision due to an overload of information and options, as well as changing lifestyles. Consumers are getting more sophisticated in their shopping habits, opting for traditional shopping channels, Internet or other electronic commerce, televised home shopping networks, direct mail shoots or catalogues, and virtual shopping. These changes are affecting the characteristics of shopping behaviour, as well as how organisations segment their markets. Electronic buying is unlikely to totally replace traditional purchasing channels. Customers will instead select their shopping destination based on the goods or service they are purchasing, the time available, or simply their mood. Even the most steadfast clients may investigate new channels if the technology is simple to use and the rewards are obvious. All these things are weakening the customer-supplier relationship. The information technology revolution has had a significant impact on the scale and scope of marketing changes. From marketing and new product development to distribution leverage and price realisation, a customer bond can have a significant impact on an organisation. Better customer relationships will provide companies with feedback on product performance, opportunities for improvement, and new product ideas. Customer loyalty and the potential to re-establish the value of one’s brand in the minds of consumers are both enhanced by a better relationship with the customers. Rather than relying on lists of target group characteristics or what customers think their preferences are, it is now possible to establish what consumers consume and enjoy. These innovations have created opportunities for customer-centric marketing and market segmentation on a one-to-one basis.
The ability to track, understand, and most importantly, respond to individual client behaviour is the cornerstone for “Segment-of-One” marketing (Otalvaro et al., 2021; Verma and Kaur, 2022). Instead of being a logistical nightmare, information becomes a competitive asset. A successful segment-of-one programme develops proprietary knowledge of one's own customers—how they feel, buy, need, and respond. It enables businesses to create a more empowered company that is more focused on the demands of end users. It enables the introduction of new products and services more quickly. Finally, organisations may harness their experience and advance faster down the learning curve by having closer touch with and a greater understanding of their customers.
Direct response segment-of-one methods have been employed by various companies in a variety of industries. They are consuming an increasing portion of the advertising communication budget. The national database has become a significant tool for packaged goods businesses to cut through the clutter and zero in on certain customer categories. Because heavy product users drive consumer businesses, identifying as many of them as possible is advantageous. Automobile purchases, for example, are now considered to be predictable and may be forecasted for individual households in the consumer durables sector. If you can get information from the customer, you can predict the time of purchase, the model, and even the price with astonishing accuracy.
Even direct mail, which isn't always the most enticing channel in today's crowded marketplace, has proven to be beneficial when combined with a strong “Segment-of-One” strategy (Khatri and Kale, 2022). Other forms of personalised communication media are beginning to appear. Selective binding technology is in the works, allowing publications to be customised to specific subscribers. Videotext, point-of-purchase communication, and customised coop mailers are all becoming increasingly popular. Addressable cable television is a technical, if not yet commercial, reality.
Figure 1.
Comparison of organisational imperatives required under Mass Marketing, Segment Marketing, and Segment of One Marketing