Customer Relationship Marketing

  • Customer relationship marketing (CRM) is a business process in which client relationships, customer loyalty and brand value are built through marketing strategies and activities.
  • CRM is about forming long-term relationships with customers. Rather than trying to encourage a one-time sale, CRM tries to foster customer loyalty by providing exemplary products and services. This is different than most normal advertising practices that focus on a single transaction; watch ad A and buy product B. CRM, by contrast, is usually not linked to a single product or offer. It involves a company refining the way they do business in order to maximize the value of that relationship for the customer.
  • CRM mainly involves the improvement of internal operations. Many customers leave a company not because they didn’t like the product, but because they were frustrated with the customer service. If a business streamlines its internal operations to satisfy all service needs of their customers, customers will be happier even if the product does not satisfies customer ends.
  • The Internet has made it easier for companies to track, store, analyze and then utilize large amount of information about customers.
  • Customers are offered personalized ads, special deals, handwritten birthday cards to clients and associates every year and expedited service as a token of appreciation for their loyalty. CRM cares about them as people rather than simply consumers.
  • American Airlines maintains a comprehensive frequent flyer program that rewards customer loyalty with the promise of free flights, upgrades, and discounts.
  • Dell computers created a special online store for high volume corporate customers. By tailoring the ordering process to the specific customer’s needs, Dell was able to expedite many of the hassles corporate technology buyers face. Providing a higher level of service leads to increased loyalty.
Link : What is Customer Relationship Marketing: Building Motherhood Brands