Definition of customer relationship management in marketing

definition of customer relationship management in marketing

Customer relationship management (CRM) is a term for the With an estimated global market value of over $40 billion in , CRM technology is widely All of the computer software in the world to help with CRM means. CRM leverages and amplifies customer base of an organization through efficacious and efficient marketing. In fact CRM has brought up new dimensions in the. CRM or Customer Relationship Management is a strategy for managing an While the importance of CRM has traditionally been as a sales and marketing tool, . departments and channels, and having to re-explain their problem each time.

These marketing strategies are more promising as compared to the traditional ways on marketing as they help delivering higher-up performance and walloping business. They also help meliorating response rates in marketing campaigns, cut cost on promotions due to low asset values and provide higher scrutiny on organizational investments. The various aspects of CRM oriented marketing are discussed below.

Customer-relationship management - Wikipedia

Web Marketing- With the growing popularity of web, customers are tending towards web marketing or web shopping. This helps both customers and suppliers to transact in a real time environment irrespective of their locations.

Some of the major advantages of Web Marketing are listed below: It is relatively very inexpensive as it reduces the cost for physically reaching to the target customers for interaction.

definition of customer relationship management in marketing

Suppliers can reach to more number of customers in lesser amount of time. The online marketing campaigns can be easily tracked, traced, calculated and tested.

The selection process of any product or brand is simplified due to proven online research and analysis techniques.

Online marketing campaigns are more promotional as compared to manual campaigns.

CRM Customer Relationship Management - Marketing Video Lecture by Prof Vijay Prakash Anand

Email Marketing- Email marketing has turned out to be more efficacious and inexpensive as compared to mail or phone based marketing strategies. Email marketing is direct marketing which is data driven and leads to more accurate customer response and effective fulfillment of customer needs.

More attractive features include newsletters, sending of eCoupons, eCards, provision of saving events into calendars etc.

Analyzing customers buying behavior online- A CRM system provides a platform to analyze the customers buying behavior online.

Customer Relationship Management (CRM) and Marketing

They may have enjoyed the company's bright orange color, messiness and shape. These days, companies store and receive huge amounts of data through emailsonline chat sessions, phone calls, and more. All of these are signs of what types of relationships the customer wants with the firm, and therefore companies may consider investing more time and effort in building out their relational intelligence.

Social media such as Facebook, Twitter, blogsetc.

  • Customer-relationship management

Understanding the customer and capturing this data allows companies to convert customer's signals into information and knowledge that the firm can use to understand a potential customer's desired relations with a brand. This helps convert data into profits for the firm. Stronger bonds contribute to building market share. By managing different portfolios for different segments of the customer base, the firm can achieve strategic goals.

For example, Harley Davidson sent its employees on the road with customers, who were motorcycle enthusiasts, to help solidify relationships. Other employees have also been trained in social psychology and the social sciences to help bolster strong customer relationships.

Customer service representatives must be educated to value customer relationships, and trained to understand existing customer profiles. Even the finance and legal departments should understand how to manage and build relationships with customers.

Customer Relationship Management (CRM) and Marketing

These systems codify the interactions between company and customers by using analytics and key performance indicators to give the users information on where to focus their marketing and customer service. This allows agents to have access to a caller's history to provide personalized customer communication. The intention is to maximize average revenue per userdecrease churn rate and decrease idle and unproductive contact with the customers.

The gamification of customer service environments includes providing elements found in games like rewards and bonus points to customer service representatives as a method of feedback for a job well done. Automation prevents this by having pre-recorded audio messages that help customers solve their problems. For example, an automated contact center may be able to re-route a customer through a series of commands asking him or her to select a certain number in order to speak with a particular contact center agent who specializes in the field in which the customer has a question.

This also saves time on behalf of the employees. These customers also share their own opinions and experiences with a company's products and services, giving these firms more insight.

Therefore, these firms can both share their own opinions and also track the opinions of their customers. The systems take in information based on a customer's physical location and sometimes integrates it with popular location-based GPS applications. It can be used for networking or contact management as well to help increase sales based on location.

definition of customer relationship management in marketing

For the best level of CRM operation in a B2B environment, the software must be personalized and delivered at individual levels. There are fewer figure propositions in business-to-business, but in some cases, they cost a lot more than business-to-consumer items and relationships in business-to-business environment are built over a longer period of time.

Furthermore, business-to-business CRM must be easily integrated with products from other companies. Such integration enables the creation of forecasts about customer behavior based on their buying history, bills, business success, etc.

definition of customer relationship management in marketing

An application for a business-to-business company must have a function to connect all the contacts, processes and deals among the customers segment and then prepare a paper. Automation of sales process is an important requirement for business-to-business products. It should effectively manage the deal and progress it through all the phases towards signing.

Finally, a crucial point is personalization.