A series of benefits may be realized when a firm effectively utilizes the Internet. For example, the Internet makes it easier for firms to communicate with loyal consumers. This makes it possible to solidify the relationships they have with the company.

To secure this advantage, the process begins by identifying the heavy product users. Remember, being a heavy user is not always synonymous with feeling strong brand loyalty. Some individuals or companies are heavy users because of price or convenience or for some other reason. When another firm emerges offering a better price or an improved delivery schedule, the heavy user often will switch while the brand loyal consumer will not.

Brand loyal consumers make purchases for reasons beyond the price, the convenience or the product itself. Often they experience a type of - - psychic - - or affective feeling towards the brand or company. Also, in nearly every instance of brand loyalty, consumers believe the brand is superior in quality. Inferior items are not likely to create brand loyalty. Lower quality products are more likely to capture repeat purchase behavior rather than loyalty.

The experience or feelings a consumer develops towards a brand are often the result of marketing communications between the firm and the consumer. Although advertising is a major component or communication channel used to develop brand loyalty, the Internet is becoming increasingly valuable.

The Internet provides three opportunities that are not possible with advertising. First, the Internet can be designed to make shopping and other contacts more pleasurable experiences. Buyers return to the websites because they enjoyed the experience previously. These feelings may be similar to what a customer encounters at Starbucks. Consumers are loyal to Starbucks because of the total experience and atmosphere of the establishment. Not only is the coffee good, but much more is involved in the feelings of loyalty towards the company.

The second opportunity the Internet provides is the ability to establish one to one communication between the consumer and the firm. Database technology permits the company to retain a detailed history of groups of consumers as well as information about individual shoppers. Using these data, the company can develop a one on one relationship that ties the consumer to the firm. These communications (special offers, customized ads, etc) often move heavy users towards brand loyalty.

Thirds, the Internet offers the potentials to contact niche customers. Computer Economics research analyst Adam Harris notes that - - The Internet offers a unique opportunity for companies to target market - - . Potential niches include African Americans, gays, women, Latinos, persons of Asian descent and even Christian Web surfers.

In communicating with consumers, it is important to provide rewards for loyalty. These rewards are not promotions, but actual rewards. The gift or offer may be the same as for a promotion, but the dialogue with the consumer is different. For loyal consumers, these rewards are mentioned as a way to say - - thank you - - for that loyalty. On the other hand, consumer promotions are merely used to entice the price sensitive consumer or the light user to make a purchase. A reward helps the firm to say that the persons or business is important and the psychological impact of this type of message can be very strong.

The Internet is an ideal medium for direct marketing. Consumers and businesses now order directly from numerous companies through the Internet. Internet patrons can also be sent
e-mails promoting specific products. Businesses, however, have to be careful about sending unsolicited e-mails because many customers and businesses are frustrated by the practice of spamming or sending out mass unwanted e-mails.

Spamming on the Internet is equivalent to sending out junk mail to an untargeted audience. Instead, the firm should develop a more targeted Internet e-mail direct-marketing program. To do so, the first step is to get the customer’s permission. Obtaining this permission is easier when some type of reward is offered.

Most companies that market on the Internet adopt the above technique where in they use Web built-in forms that customers can check in order to receive company’s free newsletter then click the confirmation email which they get in their inbox to start receiving those newsletters and updates. Also, from the company’s perspective, the form is designed to obtain names for a database which may then be used in later direct-mail and e-mail marketing programs.

Some florists, for instance, have been successful using email to encourage direct sales. These companies obtain the client’s permission and then send reminders about anniversaries, birthdays and other important dates. Many customers find these personalized e-mails to be beneficial. It takes time to develop this type of program because the company needs a great deal of information from customers. When the relation is established, however, it can be a very strong direct-marketing technique.

The most recent trend in direct marketing via the Internet is interactive marketing. Interactive marketing is individualizing and personalizing everything from the Internet Web content to the product being promoted to e-mail messages. NCR produces a software called Relationship Optimizer and Prime Response that uses powerful data analysis techniques to personalize direct offers. The NCR software analyzes customer interactions such as click-stream data traffic, any type of customer interaction with the firm and combines it with demographic information from external or internal direct-marketing database. As the data are being processed, the software can launch complex interactive and personalized Web and e-mail campaigns.

Levi-Strauss uses a similar software called Blue Martini E-Merchandising, to customize both Levis.com and the Dockers.com Websites. The Home Shopping Network uses Edify’s Smart Options software to track user preferences and suggest product based on the customer’s past activities and current purchases. These Technologies blur the line between selling and marketing because the messages and product a customer sees are based on past purchasing activities. These programs are designed to increase the odds that the customer will see something he or she wants rather than being forced to wade through scores of products he or she has no interest in purchasing at a more standardized website.

As the technology improves and grows, other forms of direct-marketing programs through the Internet will emerge. Also, as more people access the Web while on the move - - through mobile phones and other carry-around devices - -, Web Marketers undoubtedly will develop methods to reach customers with on-demand goods and services. It is likely that direct-marketing has only scratched the surface of the potential that the Internet offers.