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Use:-CRM: Four Marketing Activities

CRM stands for customer relationship management. It refers to how companies interact with and manage relationships with their customers, such as through promotional emails, events, and software. Marketing departments use CRM to measure how effective their efforts are at keeping customers engaged and purchasing over time. CRM involves building customer databases with information that helps companies better understand their customers and determine who their best customers are so they can tailor marketing messages and create new products and services for them.

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168 views2 pages

Use:-CRM: Four Marketing Activities

CRM stands for customer relationship management. It refers to how companies interact with and manage relationships with their customers, such as through promotional emails, events, and software. Marketing departments use CRM to measure how effective their efforts are at keeping customers engaged and purchasing over time. CRM involves building customer databases with information that helps companies better understand their customers and determine who their best customers are so they can tailor marketing messages and create new products and services for them.

Uploaded by

Sonika Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CRM stands for customer relationship management.

Most commonly, the term CRM is used in


respect to how a company interacts with customers when marketing the company’s products or
services. More specifically, CRM relates to how a company interacts with its customers by sending
out promotional emails or hosting special events it invites the customer to attend and what the
response from the customer is.

Use:- CRM is typically composed of three aspects of marketing. First, it’s how companies interact with
their customers—email, hard-copy newsletters, sales letters and events. Second, it’s the software
that companies use to manage their customer interactions; third, it’s the Internet capabilities
companies use to interact with customers. Marketing departments use CRM to measure how
marketing efforts are working to keep customers engaged—to keep customers purchasing from the
company time and again.
Definition :- In essence, customer retention management is building a database of customers. The
customer database is a collection of customer information. Information may include the customer
name and shipping address, but it may also contain other information such as a birth date, age,
household income, spouse’s name and the list can go on and on. For marketing purposes, this
information helps the marketing manager or other employees to determine who the customers are.

Benefits :- One of the benefits of CRM marketing is it allows companies to determine who its best
customers are. Once a company knows precisely who its target audience is, the company can then
tweak its marketing messages to attract more of the ideal types of customers that the company has
been servicing. The gathering of this information with the use of CRM also allows companies to
create new products and services that meet the needs and wants of its customers.

Four marketing activities:


The four activities that comprise CRM are as follows:
i. Customer selection:

1. Customer selection means defining the types of customers that a company will market
to.
2. It means identifying different groups of customers for which to develop offerings for and
to target during acquisition, retention and extension.
3. Different ways of segmenting customers by value and by their detailed lifecycle with the
customers are reviewed.
4. From an e-business perspective, we may want to selectively target customer types who
have adopted e-commerce.

ii. Customer acquisition:

1. Customer acquisition refers to marketing activities intended to form relationships with


new customers while minimizing acquisition costs and targeting high value customers.
2. Service quality and selecting the right channels for different customers are important .at
this stage and throughout the lifecycle.
iii. Customer retention:

1. Customer retention refers to marketing activities take by an organization to keep its


existing customers.
2. Identifying relevant offerings based on their individual needs and detailed position in the
customer lifecycle is the key.

Amazon loses $1-2 billion in revenue every year, but that's


(example:-
easily made up for by the increase in purchases.)

iv. Customer extension:

1. Customer extension refers to increasing the depth and range of products that the
customer purchases from a company.
2. This is often referred to as ‘Customer development’.

Classification of crm application

1- Customer facing application:-example call centre including helpdesk, Salesforce


automation
2- Customer touching application :- FAQ
3- Customer centric intelligence application :- to improve CRM Application
4- Online networking and other applications – opportunity to build personal relationship
with a wide range of people.

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