Customer Relationship Management (CRM) and Marketing
April 3, 2025
CRM leverages and amplifies customer base of an organization through efficacious and efficient marketing. In fact CRM has brought up new dimensions in the field of marketing by significantly improving marketing functioning and execution. Intuitive CRM associated marketing strategies like direct marketing, web marketing, e-mail marketing etc. have been matured during the recent past. These…
It is difficult to exactly define customer retention as it is a variable process. A basic definition could be ‘customer retention is the process when customers continue to buy products and services within a determine time period’. However this definition is not applicable for most of the high end and low purchase frequency products as…
Customer acquisition cost is the cost which suppliers invest to acquire a new customer. This cost should be always less than the overall value of customer in the entire customer life-cycle. For example, if the cost incurred to acquire a customer is $10, but the contribution of the customer to the profit is only $9…
It is necessarily required for an organization to interact and communicate with customers on a regular basis to increase customer loyalty. In these interactions and communications it is required to learn and determine all individual customer needs and respond accordingly.
Following are some important aspects which suppliers should always keep in mind to increase customer loyalty:
It is important for the suppliers to identify the factors which force the customers to get emotionally attached with them and should mould this information accordingly to enhance this emotional relationship.
There can be a range of factors for customers that develops these emotional attachment with suppliers, some of which are discussed below:
In industrial sector, the products provided by suppliers are actually used by customers for production purpose.
Hence unavailability, malfunctioning or low performance of these products could highly affect the profitability in business. By nullifying all these factors and providing high valued service and high end products which are available all the time develops a sense of credibility among the customers. In such case customers develop faith and belief in supplier which obviously increases customer loyalty.
In today’s competitive business marketplace, customer satisfaction is an important performance exponent and basic differentiator of business strategies. However, a satisfied customer may be or may not be loyal but an unsatisfied customer potentially seeks other options and may migrate easily.
Hence it is important for the supplier to identify dissatisfaction factors and develop corrective measures to cope up with.
It is often seen that if these corrective measures are implemented successfully to improve satisfaction then satisfaction level increases to a much higher level as compared to a normal satisfied customer.
A satisfied customer mostly tends to be a loyal customer hence customer satisfaction is an important factor that increases customer loyalty.
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