Information Technology Reference
In-Depth Information
Technology-enabled relationship management is a new twist on establishing direct
customer relationships made possible when firms promote and sell on the Web.
Technology-
enabled relationship management
occurs when a firm obtains detailed information about a
customer's behavior, preferences, needs, and buying patterns and uses that information to
set prices, negotiate terms, tailor promotions, add product features, and otherwise customize
its entire relationship with that customer.
Cliff Conneighton, senior vice president of e-commerce platform provider Art
Technology Group (ATG), says: “The secret to improved sales on the Web is to deliver the
right offer to someone at the right time. [You have] to know something about who you're
selling to, and try to show them the goods and the offer that's more relevant.” American
Eagle Outfitters, an ATG client, followed this advice and doubled the revenue generated at
its Web site in only one year.
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technology-enabled
relationship management
Occurs when a firm obtains detailed
information about a customer's
behavior, preferences, needs, and
buying patterns and uses that
information to set prices, negotiate
terms, tailor promotions, add
product features, and otherwise
customize its entire relationship
with that customer.
Investment and Finance
The Internet has revolutionized the world of investment and finance. Perhaps the changes
have been so significant because this industry had so many built-in inefficiencies and so much
opportunity for improvement.
The brokerage business adapted to the Internet faster than any other arm of finance. The
allure of online trading that enables investors to do quick, thorough research and then buy
shares in any company in a few seconds and at a fraction of the cost of a full-commission
firm has brought many investors to the Web. Online brokerage firms have consolidated, with
Ameritrade acquiring TD Waterhouse, and E-Trade acquiring Harrisdirect and the online
brokerage services of JP Morgan. In spite of the wealth of information available online, the
average consumer buys stocks based on a tip or a recommendation rather than as the result
of research and analysis. It is the more sophisticated investor that really takes advantage of
the data and tools available on the Internet.
E-Trade is an online brokerage site
that offers information, tools, and
account-management services for
investors.
Online banking customers can check balances of their savings, checking, and loan
accounts; transfer money among accounts; and pay their bills. These customers enjoy the
convenience of not writing checks by hand, tracking their current balances, and reducing
