Customer relation management is a business strategy that aims to understand and manage the needs of an organization and also manage the needs of customers. Customer relationship management is concerned with the development of customer relationships with targeted customers. The focus of CRM is on creating value for the customer and the company for long term. When customer importance the customer service that they receive from suppliers, they are not more likely to look to the other supplier for their needs. CRM is very important because today’s businesses compete with multinational products offerings delivered by networks. There are four implementation tasks for creating and managing customer relationships that are identity, differentiate, interact
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In a customer-centric approach, the goal becomes developing products and services to fit customer needs. In Seybold’s work, five steps in designing a customer-centric organization were suggested:
Make it easy for customers to do business;
Focus on the end customer;
Redesign front office and examine information flows between the front and back …show more content…
Optimizing customer relationships requires a complete understanding of all customers; profitable as well as non-profitable, and then to organize business processes to treat customers individually based on their needs and their values. Not long ago, companies with efficient facilities and greater resources were able to satisfy customer needs with standardized products, reaping advantages through productivity gains and lower costs. Mass marketing and mass production were successful as long as customers were satisfied with standardized products. As more firms entered the market, mass marketing techniques, where the goal was to sell what manufacturing produced, started to lose effectiveness. Target marketing, or segmentation, shifted a company’s focus to adjusting products and marketing efforts to fit customer requirements. Changing customer needs and preferences require firms to define smaller and smaller segments. It has become well known that retaining customers is more profitable than building new relationships. Consequently, relationship marketing was developed on the basis that customers vary in their needs, preferences, buying behavior, and price sensitivity. Customer relationship marketing techniques focus on single customers and require the firm to be organized around the customer, rather than the product.
In a customer-centric approach, the goal becomes developing products and services to fit customer needs. In Seybold’s work, five steps in designing a customer-centric organization were suggested:
Make it easy for customers to do business;
Focus on the end customer;
Redesign front office and examine information flows between the front and back …show more content…
Optimizing customer relationships requires a complete understanding of all customers; profitable as well as non-profitable, and then to organize business processes to treat customers individually based on their needs and their values. Not long ago, companies with efficient facilities and greater resources were able to satisfy customer needs with standardized products, reaping advantages through productivity gains and lower costs. Mass marketing and mass production were successful as long as customers were satisfied with standardized products. As more firms entered the market, mass marketing techniques, where the goal was to sell what manufacturing produced, started to lose effectiveness. Target marketing, or segmentation, shifted a company’s focus to adjusting products and marketing efforts to fit customer requirements. Changing customer needs and preferences require firms to define smaller and smaller segments. It has become well known that retaining customers is more profitable than building new relationships. Consequently, relationship marketing was developed on the basis that customers vary in their needs, preferences, buying behavior, and price sensitivity. Customer relationship marketing techniques focus on single customers and require the firm to be organized around the customer, rather than the product.