Customer Relationship Management
CRM refers to Customer Relationship Management. It is a strategy that a business or a company to adopt so as to reduce cost and increase profitability by increasing customers’ loyalty and satisfaction, i.e. the knowledge about their customers’ needs and wants… etc. By knowing their customers, companies can store customers information so as to for future analysis and manage the customers relationship. In CRM, it will mainly go through 4 processes, i.e. identify the customers, differentiate them by values then needs, interact with the customers and remember them, customize products / services respectively.
There are several difference between the CRM and traditional marketing. In traditional marketing, it is more company oriented. It focuses on the traditional 4Ps, i.e. price, place, product, promotion. However, CRM is customer oriented. The focus will be changed from 4Ps to 4Cs, i.e. cost to customers, convenience, customer needs and wants, communication respectively. Apart from the different orientation, since CRM emphases on relationship with customers instead of the transaction deal with customers, therefore, the contact with the customer is more continuous in CRM than the traditional marketing. As CRM is customer oriented, company will have a high emphasis on customer services and high commitment to meet customers’ expectation. Conversely, traditional marketing is company oriented, so their orientation is about single sales and product. Thus, there is little emphasis on customers’ services and limited commitment in meeting the expectation. Last but not least, the ultimate goal of these two marketing is different. For transactional marketing, company are relatively focusing on short term profit. But CRM focusing long term profit.
Here is an example of Mercedes Benz successfully implement the CRM. At first, Mercedes Benz’s services were complained by customers. (Mercedes-Benz: Implementing a CRM, 2014) The services quality didn’t match with the high quality
There are several difference between the CRM and traditional marketing. In traditional marketing, it is more company oriented. It focuses on the traditional 4Ps, i.e. price, place, product, promotion. However, CRM is customer oriented. The focus will be changed from 4Ps to 4Cs, i.e. cost to customers, convenience, customer needs and wants, communication respectively. Apart from the different orientation, since CRM emphases on relationship with customers instead of the transaction deal with customers, therefore, the contact with the customer is more continuous in CRM than the traditional marketing. As CRM is customer oriented, company will have a high emphasis on customer services and high commitment to meet customers’ expectation. Conversely, traditional marketing is company oriented, so their orientation is about single sales and product. Thus, there is little emphasis on customers’ services and limited commitment in meeting the expectation. Last but not least, the ultimate goal of these two marketing is different. For transactional marketing, company are relatively focusing on short term profit. But CRM focusing long term profit.
Here is an example of Mercedes Benz successfully implement the CRM. At first, Mercedes Benz’s services were complained by customers. (Mercedes-Benz: Implementing a CRM, 2014) The services quality didn’t match with the high quality
References: Mercedes-Benz: Implementing a CRM. (2014, APRIL 5). Retrieved from https://aquila2.iseg.utl.pt/aquila/getFile.do?fileId=12804&method=getFile