CONCEPT AND CONTEXT OF RELATIONSHIP MANAGEMENT
Customer relationship management is the technique of providing information to prospects and customers, and collecting information about prospects and customers, that allows us to help them evaluate and purchase products that deliver the best possible value to them.
One-to-one marketing, and relationship marketing is to make it easier for the customer to do business with you. Marketing and sales people have many opportunities to influence customer purchase decisions. Until recently it was normal for these functions to be performed separately — by different departments within a company — without acting as a unified team. So we must understand that coordinated efforts are now being made to unify approach
Customer Relationship Management has become a popular name for a variety of software tools and techniques aimed at attracting and retaining customers. In general, CRM uses a centralized database to bring marketing and sales activities together in a unified approach to serving customers.
One-to-one marketing and relationship marketing is to make it easier for the manufacturer to do business.
• Marketing and sales people have many opportunities to influence customer purchase decisions by the way making smooth relationship with the customer.
• The concept of relationship management with respect to the customer, to get efficiency (cost reduction)and responsiveness (instant delivery).
• RELATIONSHIP MANAGEMENT by an organization can be divided into two categories
1. External relations
2. Internal relations
1 EXTERNAL RELATIONSHIP
• Two major external stakeholders of a business are customers and suppliers.
Customer relations: customer relations can be defined as the process by which companies promote customer satisfaction and loyalty.
• It involves managing communications with customers, particularly customer‘squestions and complaints and solving their disputes.
• The ultimate goal of customer relations program is to build long term relationships.
• Building a strong reputation for the brand and company.
Supplier relations: All companies tries to build a strong relationship with their suppliers.
• Supplier relationships are different from simple purchasing transactions in several ways. There can be a sense of commitment to the supplier.
• Eg: vendor (seller) sells certain items to the buyer for several times then he thinks that he will come for a next time purchase.
2 INTERNAL RELATIONSHIP
• It is an integrative process with in a system for fostering positive working relationship in a developmental way in a climate cooperation and achievement.
• Internal relationship is an ongoing process that occurs strictly within a company or organization.
• Internal relationship helps to motivate and empower employees at all levels of management and its consistently deliver a satisfying customer experience.
• Features of internal relationship management
• Customer commitment is earned in a social contract
• There is a open ideas for mutual gain.
• Close partnership between suppliers and customers.
• Customers are viewed as individual people and so are value providers.
• Continuous interaction and dialogue between suppliers and customers.
• Focuses on discovering, creating and responding to customer needs.
• Relationships are viewed as enterprise assets.
• There is a systematic collection and dissemination of customer information (detailing and negotiating requirements, expectations, needs, attitudes and satisfaction)
3.ROLE OF INTERNAL RELATIONSHIP MANAGEMENT
a. MANAGEMENT OF CHANGE Introduction of IT & new management practices.
b. BUILDING CORPORATE IMAGE:
The team develops corporate image among the employees.
c. STRATEGIC INTERNAL MARKETING:
The CRM team solve an inter departmental conflict and work common benefit of the organisation.
d. Relationship between companies and customers
e. Reducing marketing costs
f. Better customer insights
g. Life time value(LTV)