CRM AS A STRATEGIC
MARKETING TOOL
Marketing is one of the new discoveries in business
management. Of late, marketing has come to occupy significant position in the
overall strategic studies. Various challenges are emerging in marketing as well
as new approaches are being made in its study to view its different aspects of
the many things it has been recently realized that customer is the most
important elements in marketing and its sustenance and retention is far more
important than any other marketing functions.CRM is one of the core area in
marketing.
The major areas
of CRM focus on:
• Generation
and servicing more loyal customers.
• Expansion
of customer base
• Reduction
of advertising costs
• Increase
in profitable customers
• Ease
in introduction of new products
• Personal
Information Gathering and Processing, Self-Service.
• CRM
is the marketing management practice of identifying, attracting and retaining
the most valuable customer to sustain profitable growth
• CRM
is the process of making and keeping customers and maximizing their
profitability, behaviors and satisfaction.
• Today
customer demand open equal access, real time specialized information,
convenient access, portability, process and logistics transparency, pricing
transparency, global pricing, ability to set prices, choices of distribution
channels and control over their information.
• First
time customer can become a repeat customer, thereafter a client, then an
advocate and finally one‘s partner in progress.
Loyal
customers always create a profit and also reduced operating cost, increased
purchases and give plenty of referrals.
• The
realistic observation on customers that it costs ten times more to sell to new
customers than to sell to an existing one.
• Existing
customer deliver most of the revenues.
• It‘sveryimportant
part of CRM is to identify the Most Valuable Customers (MVC) for the success of
the business.
• A
small net upward migration of customers (5-10%) can deliver a dramatic
improvement in business performance.
• Marketing
and sales are charged with influencing customer behavior.
• Customer
success always equal to business success.
CRM SIGNIFICANCE TO
STAKEHOLDERS
• Four
principal stake holders play a major role in the entire process of customer
relationship management.
1. Customers
2. Employees
3. Suppliers
4. Partners
CRM SIGNIFICANCE
• Perpetual
stream of revenue
• Positive
referral creation
• Provides
premium
• Helps
customer retention
• Lowers
cost of sale
• Helps
understanding consumer behavior
• Provides
opportunity to cross-sell and up-sell
• Reduces
marketing time
• Channel
cost rationalization
• Enables business process re-engineering.
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