Customer relationship management matures
- Traditional CRM was about conducting promotional activities so as to attract new customers. It relied upon information from a database.
- Modern Customer relationship management has shifted to direct marketing which has necessitated businesses to segment their markets.
- This allows the company to use resources only on those customers they can serve best.
Factors that drive the customer relationship management trend
The trend in CRM was initially driven by companies but, the modern CRM is customer driven. Customers have expectations from companies, and this has shifted the roles. Factors like increased competition as a result of deregulation, the internet which has made the customers become better informed, innovation which has resulted to more choices for the customer, the shift by companies from mass production to mass customisation and rising promotion costs have all led to roles shifting.
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Establishing a customer relationship management strategy
- The best approach for CRM strategy is developing a customer data warehouse and delivery channels like customer service applications and campaign management tools.
Stages of a customer life cycle relationship
Customer relationship begins with identification followed by initialisation and marketing where the company presents opportunities to the customer. The company then presents their offering in terms of products and services which lead to purchase. Utilisation is where the customer reviews the product and the company receives feedback from the customer. The final stage is continued use and modification of the product or service as a result of interaction of supplier and purchaser.
Testing the level of customer relationship management
Businesses need customers for their survival so they should test their level of customer relationship management. They can do this with questions like the ones below.
- Does the company have as many customers as it wants?
- Are their customers as loyal as they expect them to be?
- Do Are the customers giving the company enough business as it would want?
- Does the company understand their customers?
- Does the company have an information strategy that is interested in what customers are trying to communicate?
- How fast can the organisation respond to the needs of their customers and markets?
- Does the company extend their capabilities to all their locations?
Adding social causes to CRM activities
- Social cause related marketing is a way to link a company with a non profit or charitable organisation. Businesses are using it today as a promotional strategy because it adds value to marketing a company’s products and services.
- Companies are adding social causes to customer relationship management to make it more effective so they can combine CRM and social marketing.
Social cause related marketing
In order to link CRM activities to social marketing, the profit and not for profit organisations identify goals for both groups, embrace a cause, come up with a project, choose a partner, plan the project and finally communicate and monitor the planning.
Loyalty from social marketing
Customers respond positively to social marketing because they see support for their social interest so they respond to the company with loyalty.
Synergy of CRM and social marketing
CRM and Social marketing combined lead to increased sales, customer loyalty, enhanced company image, positive media coverage and long term relationships that lead to profitability.