MARKETING III

1
MARKETING III

• Managing profitablecustomer relationships

2
LEARNING OBJECTIVES

• to understand the strategic role of Customer
  Relationship Management (CRM)
• to recognise the benefits with relationship
  marketing

3
RELATIONSHIP MARKETING

• The consistent application of up-to-date
  knowledge of individual customers to product and
  service design In order to develop a continuous
  long-term relationship.
• (Cram)
• Not mass marketing. Aimed at individual.
• Customer retention. Not attraction.
• Long term, ongoing relationships.
• Regular customer contact.
• Trust based.

4
MANAGING CUSTOMER RELATIONSHIPS

• Transaction customers
• Volatile demand
• Little loyalty
• Price oriented
• Relationship customers
• Loyal (or potential for being loyal)
• Value oriented (reliability)
• Less time consuming
• Cost effective

5
STONES CRM REQUIREMETNS

• Analysis of customers behaviour and value
• Planning of customer interaction
• Proposition development
• Use of information technology
• Bespoke customer management personnel
• Process management
• Customer focused
• Measurement of value

6
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

• Uses technology-enhanced customer interaction
  to shape appropriate marketing offers designed to
  nurture ongoing relationships with individual
  customers within an organisation's target
  markets
• (Dibb et al., 2006)

7
THE COMPONENTS OF CRM

• Information based operation activities
• Technological development
• Pull driven systems
• Effective leadership
• Business process change
• Responsiveness
• Long-term relationships
• A holistic business approach

8
WHY CRM FAIL

• Failure to identify CRM as a complex business
  process
• Lack of focused business objectives
• Insufficient investment in information technology
• Failure to recognise customer service as a value
  adding activity