CRM – Customer Relationship Management
Bianka Parragh, Phd
Óbuda University Keleti Károly Faculty of Business and Management Institute of Enterprise Management
• Approaches of Customer Relationship Management • The origins of CRM • The rise of CRM • The role of CRM • Types of CRM
In the late 1990s and early year of the 21th century, CRM was offered up as the next wave of marketing. The tools and techniques that would make traditional marketing obsolete. The automated approaches that would make customer relationships automatic and would enable the marketing organization to shell anything to anyone they chose. CRM was the single ...view middle of the document...
It allows the organization to focus on customers, not just activities or immediate actions.
The Benefits of Customer Relationship Management (CRM)
1. Better customer service 2. Increased work capacity 3. More success for your company
A strategic framework for CRM
Customer Relationship Management, or CRM, is increasingly found at the top of corporate agendas. Companies large and small across variety of sectors are embracing CRM as a major element of corporate strategy. CRM, also more recently called „customer management”, is a business approach, that seeks to create, develop and enhance relationships with carefully targeted customers in order to improve customer value and corporate profitability and thereby maximize shareholder value. CRM unites the potential of new technologies and new marketing thinking to deliver profitable, long-term relationships. CRM represents a renewed perspective of managing customer relationships based on relationship marketing principles; the key differenc being that today these principles are applied in context of unprecedented technological innovation and market transformation.
The origins of CRM Transaction Marketing Relationship Marketing
In the 1950s: Marketing mix – 4P (product, price, promotion, place) Lead to increased demand for the company’s offer. In the 1990s: The marketplaces was vastly different from that of the 1950s. (greater customer choice, convinience existed, globalization of markets, new sources of competition innovative business thinking and actions) Philip Kotler – Northwestern University Integrated approach: managing the competing interest of customers, staff, shareholders and other stakeholders.
The trasition to relationship marketing
Emphasis on all market domains and customer relition
Emphasis on customer relation
Functionally based marketing Cross-functionally based marketing
The key principles of relationship marketing
The three marketing: distinguishing characteristics of relationship
•An emphasis on retention of profitable customers Maximizing the lifetime value of a customer is a fundamental goal of relationship marketing. Loyal customers represent the goodwill earned by the brand. Loyal customers referring new customers and redicing acquisition costs. •An emphasis on multiple markets The model identifies six key groups, or market domains, that contribute to an organization’s effectiveness in the marketplace. They are customer markets, influencer (including shareholder) markets, recruitment markets, referrak markets, internal markets, and supplier/alliance markets. •An emphasis on a cross-functional approach to marketing To succeed in managing the multiple marketing stakeholders effectively, marketing must be cross-functional. The concept and the philosophy of marketing extend across the business enterprise. Everyone within the business must...