Purpose of CRM
Relationship marketing aims to build equally satisfying long-term relationships with key partners in order to earn and retain their business. The four main components are customers, employees, marketing partners, (i.e. suppliers, distributors, dealers) and financial partners (i.e. shareholders, investors) (Kotler & Keller, 2014). The outcome of relationship marketing is a company asset called marketing network. The marketing network consists of the company and supporting stakeholders with whom it has built mutually profitable business relationships. Customer relationship marketing is often confused with customer relationship management, however, they have two different meanings. “CRM is a range of one-on-one relationship marketing programs based on the level of company and customer value.” (Best, 2013) Customer relationship management manages those relationships. Hoyer stated that customer relationship management is the process of carefully managing detailed information about individual customers and all customers “touch points” to maximize loyalty. (293) Customer touch points occur from an actual experience they are described as any occasion when a customer encounters a brand and product. Customer relationship marketing includes three different strategies. Th...
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... preferences, and usage behaviors.
Step 3: Create individualized customer solutions based on the customer’s unique needs.
Step 4: Track customer experiences and all aspects of customer satisfaction to ensure that high levels of customer satisfaction and customer loyalty are achieved.
In closing, we have discussed the purpose of customer relationship marketing, the customer’s value versus the company’s value, strategies used to implement CRM, and mentioned companies that have successfully implemented customer relationship marketing programs. Customer relationship marketing has proven to be an essential tool for enhancing customer loyalty and growing company profits. It is an important tool for marketing and strategic development.
Best, Roger. Market-Based Management, “Strategies for Growing Customer Value and Profitability.” NJ: Pearson, 2013.
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