Marketers use customer relationship management tools to create marketing programs that satisfy customers
Can We Help with Your Assignment?
Let us do your homework! Professional writers in all subject areas are available and will meet your assignment deadline. Free proofreading and copy-editing included.
Customer relationship management involves three stages: customer acquistion, customer retention, and customer reacquisition
Customer relationship management
- Overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
- Information technology and database systems
- Customer contact brands or companies at touch points
- Gain insight into customer’s needs and behaviour, then used to improve customers dealings with the company
CRM and Cultural Changes
"Be Bold" No-Essay $10,000 Scholarship
The $10,000 “Be Bold” Scholarship is a no-essay scholarship that will be awarded to the applicant with the boldest profile. To us, boldest does not mean “best”, or “most accomplished”. Being bold means being: Earnest, Determined, Moving. The scholarship will be awarded to the student whose profile is most bold, according to these characteristics.
- Overall strategy approach; not merely software
- Technology is useless if employees do not use the system
- CRM not quick fix
o Requires top-down long-run commitment by management
- Cultural attitudes of the organization must change internally to a CRM culture
- CRM: 5 Questions:
o Company vision and mission statement reflect a customer-centric sentiment?
o % of employees can state mission state or company vision?
o Do employees complain about customers?
o To what degree do employees feel that they are rewarded for behaving in a way that has the customer’s interests at heart?
o Company feel comfortable talking to 10 randomly chosen customers about sales and after-care experience?
- Examine the profiles of company’s most popular customers and use these characteristics to find prospective customers?
- How do they look like? Where to get more of them?
- Maintain profitable customer relationships; more sales and profits; less expensive than making sale to new customer
- Long term customers
o Spread out the cost of acquiring
o Less price sensitive; less inclined to switch
o Word of mouth
- Programs specifically designed for customer retention
- A small number of heavy users account for a large percentage of brand’s sales
o Pareto’s Rule
80% of sales come from 20% of its customers
- have come a way for one company to differentiate itself from another
- an efficient way to sort through large amounts of data to find relatinship between variables
- spot trends
- customer data stored in data warehouse
Customer Lifetime Value
- potential sales that will be generated if that customer remains loyal to that company for a lifetime
- share of wallet:
o related concept; percentage of a customer’s purchases that a company has in specific product category
- CRM entails building and maintaining profitable customer relationships
- CRM allows firms to use information technology to quantify the value of individual customers in terms of sales and profit
- Many customers are unprofitable
- Fire low-value customers; focus on high value
- Dangers of firing low-value customer
o If only high-value customers, leaves the company open to poaching by competitors if they are aware of its customer base
- Losing a customer means more than losing a sale
o Losing the entire future stream of purchases that customer make over a lifetime
o Poor customer service often why lose customers
Find customer who is in jeopardy of being lost
- Longer = less likely to return