Download CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

MARKETING III
Managing profitable
customer relationships
LEARNING OBJECTIVES
…to understand the strategic role of
Customer Relationship Management (CRM)
…to recognise the benefits with relationship
marketing
RELATIONSHIP MARKETING
“The consistent application of up-to-date
knowledge of individual customers to product and
service design… In order to develop a continuous
long-term relationship.”
(Cram)
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Not mass marketing. Aimed at individual.
Customer retention. Not attraction.
Long term, ongoing relationships.
Regular customer contact.
Trust based.
MANAGING CUSTOMER
RELATIONSHIPS
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Transaction customers
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Volatile demand
Little loyalty
Price oriented
Relationship customers
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Loyal (or potential for being loyal)
Value oriented (reliability)
Less time consuming
Cost effective
STONE’S CRM
REQUIREMETNS
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Analysis of customers behaviour and value
Planning of customer interaction
Proposition development
Use of information technology
Bespoke customer management personnel
Process management
Customer focused
Measurement of value
CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
“Uses technology-enhanced customer
interaction to shape appropriate marketing
offers designed to nurture ongoing
relationships with individual customers within
an organisation's target markets”
(Dibb et al., 2006)
THE COMPONENTS OF CRM
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Information based operation activities
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Effective leadership
Business process change
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Technological development
Pull driven systems
Responsiveness
Long-term relationships
A holistic business approach
WHY CRM FAIL
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Failure to identify CRM as a complex
business process
Lack of focused business objectives
Insufficient investment in information
technology
Failure to recognise customer service as a
value adding activity