Organisations should increase the number of products and services that add value for the customer and are profitable for the organisation, since it can ensure that the rewarding lifetime value of the relationship is maximised. The impact of existing market information helps to manage the relationship with customers effectively, and the linkage between marketing, communication and CRM must be strong. CRM adds information regarding marketing, sales and service functions through organisation process automation, technology advancements and information resources like market research institutions in order to maximise customer contact. Therefore understanding customers’ needs and purchasing behavior, effectively manage interaction which they have with a customer. These interactions can arise when customers interact with employees in the organisation through customer contact centres, but also through advertising and sales promotion activities.
Customer relationship management or CRM for short is a model for managing a company’s interactions with current and future customers. When CRM is utilized correctly it will increase profitability and customer loyalty, which are both very important to an organization. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support. Customer relationship management is very important in many ways to help a company become and stay successful. CRM can help businesses gain a competitive edge through communication, marketing, gathering customer information, social media and mobile technology.
Customer Relationship Marketing (CRM) is more focused on what happens after a customer is acquired. The goal is to develop a long-term customer relationship that benefits both the customer and the company. This summary will discuss the purpose of customer relationship marketing, the customer’s value versus the company’s value, strategies used to implement CRM, and review companies that have successfully implemented customer relationship marketing programs. 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.
This essay is a critical literature review of Relationship Marketing in relation to customer satisfaction, customer loyalty and technology. In this review, I will provide a brief orientation of relationship marketing; identify the benefits of relationship marketing for companies and customers and critically analyse the concept of RM with regards to customer satisfaction, customer loyalty and analyse the role of technology in relationship marketing. Leahy (2011:651) defined relationship marketing as “attracting and keeping customers for a long period of time”. RM is used by firms to change consumer attitudes and increase the frequency of purchase in a business using marketing techniques such as promotions and advertising. According to Ndubisi and Chan (2005), relationship marketing provides an organisation the opportunity to get access to the right information about their customers, meet the customers’ needs effectively, efficiently and gain competitive advantage.
Measuring the benefits will help companies identify their best customers and eliminate negative information flow between customers and the company. Customer Relationship Management has impacted the business world and changed the way customers are handled and the way customer satisfaction is valued. Murphy, John A. (2001). The Lifebelt: The Definitive Guide to Managing Customer Retention.
Cross-selling is when sales representatives improve their sales by offering extra products (O’Brien, A & Ma... ... middle of paper ... ...s long as possible. They are able to customize and personalize customers’ information so they can better attend customers based on their needs and characteristics. This benefit will help sales representative to better attend and satisfy their customers next time they need services t o increased revenue. Other benefit of CRM is that it enables companies to exploit new markets. In order to succeed, it is important for CRM to have employees that accept the change and that customers are one of the most important thing of a company.
A societal marketing approach is carried out by making good marketing decisions through considering consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests. This tactic focuses on delivering value to customers to improve the consumer and the society’s well-being. Office Depot appears to be focusing on the building profitable customer relationships process of marketing to build value. They are taking their customer relationship management process into account to build their customer relations by delivering superior customer value and satisfaction. They are also realizing that their customers are very important to the success of their firm and are striving to fix any problems associated with their actions.
The employees would be motivated to figure out ways of keeping the existing customer, while at the same time figuring out how to cost-effectively reach for new customers. The client department needs to segment the firm’s customer base into groups with same characteristics. This would enable the organization to better understand their clients and formulate the value proposition accordingly. The degree to which such segmentation is obtained is reflected in a firm’s commercial side structure. The segment balance has numerous long lasting effects on the direction of the firm’s optimization efforts as well as the ultimate competitive advantage.
Nowadays, most companies tend to compete to gain the customer’s loyalty by providing purchasers diverse programs namely creating brand communities, offering excellent customer service and developing loyalty programs. Customer loyalty means people buy products from the same manufacturer repeatedly rather than from other suppliers. Typically, as marketing managers, are providing excellent facility to obtain the customer’s needs and interest in long-lasting relationship, for instance, loyalty program. It considered one of the value propositions that a marketer can offer a potential customer whichever can come in many forms. In our competitive market, maintaining customer loyalty is obviously a key goal for any marketing managers, customer experience programs are the most effective way to drive customer loyalty when customers are engaged on an emotional, intellectual, or even spiritual level, and when a customer cherishes a product or service before, during and after its use (Bloemer and Kasper, 1995).
It’s very important for a company has ability to attract and retain customers successfully. Customer loyalty relies on the strong desire of product or services by customers, and availability of supplier selection based on their reference (Dick and Basu, 1994; Otim and Grover, 2006). Therefore, for a business to retain its customers, it is important that focus should be laid on satisfaction of customers’ need. According to Berry (2006), customers evaluate the level of services due to its performance instead of objects, so in order to m...