by Don Peppers and Martha Rogers, Ph.D. 1997, 436 pages, $24.95, ISBN 0-385-48205-1. Published by Doubleday.

A major theme that runs through practically all marketing books is that you must know your customers. A very long list of products and services that failed due to violating this principle may be prepared. Not only products by individual inventors, but products by long established corporations make up this list.

Today a major tool for understanding customers has come into existence. This, of course, is the computer and the interlinking systems for computers. The authors of this book argue that this is now the beginning of the age of interactive business. In the past the emphasis was on the mass product, one size fits all. Today, products and services can be tailored to one customer. This fact can be used to create customer loyalty and "lock-in" a customer to your business.

One of the many examples cited in the book is the ordinary greeting card. Up until now the greeting card companies have, in fact, thought of the retailers as their customers. Now it is not only possible, but it is becoming practical to establish a "1:1 relationship with end users". This is made possible by "the computer, modem, and at-home color printer."

Note this new "one to one" relationship with your customers may also have a tremendous affect on current distribution systems. It will, in many cases, result in new companies being formed because many current firms cannot offer this sort of direct service without antagonizing their present wholesalers, distributors, and retailers. Greet Street in greeting cards is an example.

Perhaps the greeting card business may seem remote to your product, but consider that this same one to one relationship principle is being applied to such diverse items as used cars and shoes. One firm (Custom Foot) that offers custom shoes has only sample shoes in their stores along with their foot measuring machine. Shoes in other styles may be ordered at any time by phone or modem because the firm's computer retains all your measurements.

An important concept emphasized by the writers is the "Learning Relationship" concept. Whether it is your shoe dimensions, car accessory preferences, or hotel accommodations, the one to one age computer will know what you prefer. Think of the loyalty factor here. It is like the bar where everyone knows your name.

Yet another example is Amazon.com, Inc. This interactive book store is now one of the world's largest. Yet its physical inventory is very small. In fact, its turnover is 150 times per year, whereas the average bookstore is four times a year!

In the past, we might have visualized the computer as an enormous impersonal machine, but in this interactive mode it can remember your birthday, your taste in books, or dozens of other personal bits of information. The book offers a good piece of advice: "Any company that treats a customer the same as "everybody" is treating that customer like nobody."

The new marketplace is not without problems. How do you supply documents, for a price that the customer will not duplicate and resell or give away to friends? One technique is the "watermark" or a slight variation that can be used to trace the source of a copy. Then there is the problem of using credit cards without theft possibilities. Guaranteeing privacy is a must in many areas.

This interactive, one to one concept also has and will affect manufacturing methods. A lady offering custom knit-wear bought a German made computerized loom and is able to offer dresses made to the customer's specified color, style, and size.

In many cases, the applications cited in the book are for those who can afford to pay more for their "tailor-made" product, but note the tremendous drop in computer prices over the years. A home table top computer today has the capabilities of a multi-million dollar computer of a few years ago.

This book is an easy read even though it often resorts to abbreviations such as LTV (long term value), NPV (net present value), and MVC (most valuable customers). However, these are explained in the text and in its Glossary and Principles section. Also, diagrams are provided to enable you to better visualize the concepts presented.

You should read this book because your competition surely will and because "the future" has already begun.