What is Customer Relationship ?
In CRM the alphabet ‘R’ means relationship. But there is always an ambiguity to understand the actual meaning of this relationship. This relationship between supplier and customer is not a personal relationship or a one-time transaction relationship; for example buying a refrigerator from a consumer’s outlet would not be called as a relationship. Relationship between […]
Why a Well Functioning Judicial and Legal System is Necessary for Market Economies
There would be Anarchy without a well functioning legal and Judicial System For transacting business and commerce, laws and regulations are needed and more importantly, there needs to be a mechanism to enforce such laws and regulations. For instance, corporates cannot work without contracts between them and their employees, suppliers, shareholders, and other stakeholders. Indeed, […]
Quality of Relationship with Customers
Satisfying customer needs ensures the business survival for an organization. A periodical check is required to enhance the quality of services and product to build a quality relationship with customers. For fulfilling this goal organizations must have a set of rules to measure and improve this quality. Delivering best quality services to customers is considered […]
Understanding Retail – What is Retail ?
Before understanding the concept of retail, let us first go through few terminologies. Market – Any system or place where parties are engaged in exchange of either goods or services is called as market. The parties are often called as buyers and sellers. The seller offers his goods or services to the buyer who in […]
Customer Acquisition – Meaning and its Process
Customer acquisition is the process of acquiring new customers for business or converting existing prospect into new customers. The importance of customer acquisition varies according to the specific business situation of an organization. This process is specifically concerned with issues like acquiring customers at less cost, acquiring as many customers as possible, acquiring customers who […]
In the so called Modern times, we happen to be living in a fast paced high tech society. Use of technology has become the backbone of our daily life. You are able to be in the comfortable environs of your home or office and manage all of your domestic chores such as banking, booking an airline ticket or buying insurance online.
You are so used to dealing with a particular bank, Credit Card Company or an airline and know their process by heart that you find yourself preferring to use them and resist any attempt to bank with a new bank or switch the airline.
Haven’t you been happy when the customer care executive that you called at the credit card company waived the late fee in view of your longstanding relationship?. You also notice that they try to call you and make irresistible offers to keep you happy. If you are wondering as to how they manage to get to know you better amidst thousands of customers, this is CRM helping the Companies manage to get closer to each individual customer while serving such huge customer base.
Technology has given way to the development of CRM software and processes that have made it possible for Companies to achieve multiple objectives. Many confuse Relationship Marketing with CRM. In reality CRM is the tool used by RM practitioners.
Using CRM Companies can get to work on getting closer to the customer and establishing an interactive relationship with the customer. CRM further helps enhance the customer interaction by providing standardized process as well as clear cut guidelines for the customer redressal.
CRM includes and involves IT Hardware infrastructure, Software, Communication network as well as customization depending upon the Organization, its business and the customer. For CRM to be successful, the customization has to be based on the Relationship Marketing strategies and policies drawn up by the Company.
Before customizing the CRM, there has to be an effort made to get under the skin of the customer and look at transactions and the needs of the customer through his eyes. Only when the customer needs are anticipated and addressed can the CRM become successful.
When it comes to Relationship marketing, Organizations have realised that an automated CRM process is not desired by one and all and that human interaction is very much the unsaid need in every single transaction.
Call centres have managed to emerge and grow as a business solution simply because of the human element that combines with the technological advantage.
CRM is undoubtedly a very useful tool for the Marketing professionals to get closer to their customer. Using CRM effectively they are able to offer customised marketing to individual customers and to a very large customer base.
Companies can use the data warehousing and data mining techniques to get to know all about the customer including his personal details like birthdays, anniversaries as well as store details of his past transactions, his likes and dislikes as well as his preferences etc.
Using statistical tools the data gathered can be used for extrapolation to anticipate customer behaviour and the market trends.
In case of personalised service businesses like banking or hotel industry, this kind of data on the customer helps the Companies customise the service delivery to the individual.
Customer retention and customer loyalty are the positive outcomes of a successful Relationship Marketing CRM process.
Organizations today have accepted the fact that customer relationship is one area that they have got to focus upon and invest into. Technology has been able to make this relationship work and enhance the value of relationship between the customer and the Organization.
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Relationship Marketing with Business Associates and Partners
February 12, 2025
