Customer relationship management
The creation of customer satisfaction with the product and their treatment is a certain way to make repeat business. This is not, of course, exclusively the responsibility of the marketing team. We know that generative, prolific, and representative work is essential. The starting point of a relationship marketing policy is a deep understanding of why customers would want a relationship with you as a source of value? The answer, stated plainly, is that a continued relationship with you must itself offer additional value to the customer.
Information that is understood and transformed into satisfying products is necessary. Gradually more, it is this conversion of knowledge from one form to another that is the foundation of the business: i. e. the customer-product relationship. Then, customers have to be treated in a different way from prospects. Commitment must be reciprocated if the provider is to be pleased for their relationship management efforts with gainful sales and constructive word-of-mouth publicity as well as promotion.
The growing acceptance of a Customer Relationship Management (CRM) system is confirmation that more and more providers are trying to place the customer’s interest at the heart of their business by integrating marketing, customer support, in addition to other functions to make the most of added value in a dialogical relationship. Instead of finding customers for products, providers are managing relationships in which they find products for customers (Peppers and Roger, 1993, 1997). Marketing communication no longer simply tries to make and revive product awareness and identification.
Instead of saying ‘we are here, look what we have got’, providers are saying ‘we are here with you, constantly providing value’. CRM is a holistic approach to the generation, creation and symbol of a value-creation system, i. e. marketing, customer service, as well as logistics. The objective is to move the supply chain nearer to the customer to link customer needs more straightforwardly into the management of supplies, design, manufacturing, packaging, transport, and the final purpose of all of this – profitable exchange.
This endeavor view is a shift away from a departmental view. The technology captures and offers information regarding interaction history, allowing a constancy of experience for valuable customers in all interactions – inquiry, order, delivery, preservation, upgrade, and so on. CRM systems can send customers reminders about necessary servicing and tailored offerings based on past trading history and personal information profiles. Customers can self-select assistance through the provider’s website, and assemble information concerning products, billing, order progress, and so on.
This development must challenge the marketing communications manager since it includes knowledge management, marketing automation, customer care, call centers, and sales force automation. This is clearly much more than promotional advertising design. Beginning in the late 1980s, there has been a great deal of research on what precisely customer orientation or “customer focus” means and on what precisely a firm should be doing to implement such an orientation.
Peppers and Rogers, recognized for their one-on-one marketing notion, considers customer-focused management as identical with relationship marketing or customer-relationship management (Peppers, & Rogers, and Dorf, 1999). Information technology offered firms a way to attain, process, and use individual customer information so that firms would be able to personalize customer experiences. Some scholars have named it “market orientation. ” One set of researchers recommended that customer orientation is a division of market orientation.
Their definition for market orientation is “the set of cross-functional processes as well as activities directed at creating and satisfying customers through incessant needs-assessment” (Narver, Slater, & Tietje, 1998). Following their lead, market orientation has been treated as being composed of three components: customer orientation, competitor orientation, and inter-functional coordination. In a way, all customer relationship management (CRM) solutions are essentially technology support to make sure that the firm maximizes returns from customers by enabling customer-focused interactions.
The service encounter is truthfully “where the rubber hits the road”—where the prospects of customer loyalty are appeared or lost. It is where promises made in advertising are honored or reneged on, and where expectations of customers are disappointed or met. It is where all the assets of the firm need to be brought to bear. Service encounters with the customers are also loaded with the challenges of a product that is produced and consumed in real time, where failures are bound to happen. When the firm designs the value creation process with the customer in mind, it will be prepared for all expected eventualities.
When the service fails, smart firms have smart processes that pull through and learn from the failure. They have service recovery and knowledge management processes in place. As firms compete more and more on services, the management of the customer interaction becomes serious to make sure superiority in customer value. As the core product is a product, and most facilitating services approach the commodity state, the competitiveness comes from how the customer is treated by the firm at each and every encounter.
Works Cited Curry, J. , Wurtz, W. , Thys, G. , and Zylstra, L. (1998), Customer Marketing – How to Improve the Profitability of Your Customer Base, MSP Associates: Amsterdam. Don Peppers, Martha Rogers, and Bob Dorf, “Is Your Company Ready for One-to-one Marketing? Harvard Business Review, January-February 1999, 151-160 Duncan, T. (2002), IMC: Using Advertising and Promotion to Build Brands, McGraw Hill: Boston, MA. Gummesson, E. (2000), Total Relationship Marketing.
Rethinking Marketing Management: From 4Ps to 30Rs, Butterworth Heinemann: Oxford. John C. Narver, Stanley Slater, and Brian Tietje, “Creating a Market Orientation,” Journal of Market-Focused Management 2 (3), 1998, 241. Kotler, P. (2003), Marketing Management, Prentice Hall: Upper Saddle River, NJ. William Lazer, “The Systems Concept in the Evolution of Marketing Management”. In C. Hindersman (Ed. ), Marketing Precision and Executive Action, Proceedings of the American Marketing Association Conference, June 1962, pp. 115-120.