The Importance Of Customer Relationship Management

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No matter howbig or small your company may be,building loyalty with a retailer’s most valued customers is one of the most important things.With the help ofCustomer Relationships managements (CRM), many organizations are able to build customers loyalty for long term business success. In this paper, I will be addressing the definition of CRM, how has it changed from the past and what causes these change. While giving examples of successful companiesthat use customer relationships management system to improve their organization and keep their customer satisfied.
Before CRM system was applied, relationshipmarketing was used in most of the organizations. It is a marketing strategy where organizationsfocus onbuilding and developing relationship with customer and delivering ongoing quality products and services in order to increase their profit. By doing so, organizations provide them with all the informations about particular productthat directly suited to their needs and interest in order to ensure that they will get what they aspect. In relationship marketing, firms mainlyfocus on increasing the number of individual sales and client attraction but not their retention.
However, due to the development oftechnology, change in consumers’ behaviors, organizational attitudes, market situation and increase in number of competitors in global market, the concept of relationship marketing has changed as well. Consumers no longer see themselves as passive consumers and their attention spans are much shorter. Moreover, advance in technology such as, smartphones, online application, multi-touch devices, 3D technology andHD Video Recordinghas given consumers greater selection and better products. Unlike 20 years ago, it would have been impossible ...

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... all these informations, Tesco can create additional revenue. While, customers also gain benefits from using the club card. Tesco gives card holder discounts, award, special promotion and many more to both new and loyal customers. Customers are very pleased with the services and benefits that they can get. This is a win-win situation.

In conclusion, company should think more about how to make their customers satisfied and successful instead of focusing on how to improve the product or service team. The object of CRM isn’t just having customers make repeat visits to a shop or site and being satisfied with their experiences but to make sure that they will not involve in the activities of competitors that aim to attract their patronage as well. A good CRM system can surely produce brand fanatics and increase return on investment efficiency when managed flawlessly.
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