Explain the concept of customer relationship marketing

Customer-relationship management - Wikipedia

explain the concept of customer relationship marketing

Relationship marketing was first defined as a form of marketing developed from direct response marketing campaigns which emphasizes customer retention and . Customer Relationship Management is combination of people, processes Apple Company is one of the unique companies in today's market. . Management and employees know fully well what is needed to work towards. Definition & Benefits NGDATA – With more enterprises putting the customer at the center of their marketing strategies, customer relationship.

What is CRM?

This helps both customers and suppliers to transact in a real time environment irrespective of their locations. Some of the major advantages of Web Marketing are listed below: It is relatively very inexpensive as it reduces the cost for physically reaching to the target customers for interaction.

Suppliers can reach to more number of customers in lesser amount of time. The online marketing campaigns can be easily tracked, traced, calculated and tested. The selection process of any product or brand is simplified due to proven online research and analysis techniques.

Customer relationship management

Online marketing campaigns are more promotional as compared to manual campaigns. Email Marketing- Email marketing has turned out to be more efficacious and inexpensive as compared to mail or phone based marketing strategies. Email marketing is direct marketing which is data driven and leads to more accurate customer response and effective fulfillment of customer needs.

explain the concept of customer relationship marketing

More attractive features include newsletters, sending of eCoupons, eCards, provision of saving events into calendars etc. Analyzing customers buying behavior online- A CRM system provides a platform to analyze the customers buying behavior online.

This interactive strategy provides great accuracy with high speed which includes profiling services furnishing elaborated bits of information regarding customers purchasing habits or behavior.

explain the concept of customer relationship marketing

Individualized analysis of this behavior also helps to identify to which product or brand the customers are more tended. For example an online selling website www. This is achieved by personalized analyzing the buying history of customers in the past which predicts the future business with those customers also. Those businesses with a website and online customer service have an advantage as customers can enter and maintain their own details when they buy.

Stage 2 - Storing information The most effective way to store and manage your customer information is in a relational database - a centralised customer database that will allow you to run all your systems from the same source, ensuring that everyone uses up-to-date information. Stage 3 - Accessing information With information collected and stored centrally, the next stage is to make this information available to staff in the most useful format. Stage 4 - Analysing customer behaviour Using data mining tools in spreadsheet programs, which analyse data to identify patterns or relationships, you can begin to profile customers and develop sales strategies.

Stage 5 - Marketing more effectively Many businesses find that a small percentage of their customers generate a high percentage of their profits.

Using CRM to gain a better understanding of your customers' needs, desires and self-perception, you can reward and target your most valuable customers. Stage 6 - Enhancing the customer experience Just as a small group of customers are the most profitable, a small number of complaining customers often take up a disproportionate amount of staff time.

If their problems can be identified and resolved quickly, your staff will have more time for other customers. Potential drawbacks of CRM There are several reasons why implementing a customer relationship management CRM solution might not have the desired results.

There could be a lack of commitment from people within the company to the implementation of a CRM solution. Adapting to a customer-focused approach may require a cultural change. There is a danger that relationships with customers will break down somewhere along the line, unless everyone in the business is committed to viewing their operations from the customers' perspective. The result is customer dissatisfaction and eventual loss of revenue. Poor communication can prevent buy-in.

In order to make CRM work, all the relevant people in your business must know what information you need and how to use it.

explain the concept of customer relationship marketing

Weak leadership could cause problems for any CRM implementation plan. The onus is on management to lead by example and push for a customer focus on every project.

explain the concept of customer relationship marketing

If a proposed plan isn't right for your customers, don't do it. Send your teams back to the drawing board to come up with a solution that will work. Trying to implement CRM as a complete solution in one go is a tempting but risky strategy. It is better to break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones.

Consider starting with a pilot project that incorporates all the necessary departments and groups but is small and flexible enough to allow adjustments along the way. Don't underestimate how much data you will require, and make sure that you can expand your systems if necessary. You need to carefully consider what data is collected and stored to ensure that only useful data is kept. Avoid adopting rigid rules which cannot be changed. Rules should be flexible to allow the needs of individual customers to be met.

Therefore it is vital to choose your supplier carefully. Making the wrong choice could be expensive and even jeopardise your business. Before implementing a solution based on CRM technology, you might want to ask any potential suppliers the following questions: How long has the supplier been established?

What are the specific costs associated with the product, i. Does the supplier offer any form of evaluation software so that you can try before you buy? How much is charged for technical support?

Does the supplier provide consultancy and, if so, at what rates? Is the system scalable? If your customer base grows will the system expand to cope?

Can the supplier recommend any third-party developers that make use of their core CRM products?

Customer relationship management

Is there an active independent user group where experience and ideas can be freely exchanged? Can the supplier provide references for businesses in your industry sector using their software? Does it offer training in the CRM solution and, if so, at what typical cost? Because of its general nature the information cannot be taken as comprehensive and should never be used as a substitute for legal or professional advice.