Scribd
Upload
293 views3 pages

Discussion Forum Week 8

Customer Relationship Management (CRM) can impact customer retention and loyalty to brands. CRM helps companies build relationships with customers to maintain loyalty over time. It allows companies to collect information about customer desires and needs to target customers most interested in staying. Satisfying customers through CRM can increase loyalty to the firm. Electronic CRM (e-CRM) has also become important as more business is done online. e-CRM can help companies face the challenge that 65% of online customers who buy from a site once will not return by increasing loyalty, improving marketing, and providing better customer service. The customer gap refers to the difference between customer expectations and perceptions, and understanding customer requirements is key to closing this gap under a customer-

Uploaded by

SazanMstafa
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
293 views3 pages

Discussion Forum Week 8

Customer Relationship Management (CRM) can impact customer retention and loyalty to brands. CRM helps companies build relationships with customers to maintain loyalty over time. It allows companies to collect information about customer desires and needs to target customers most interested in staying. Satisfying customers through CRM can increase loyalty to the firm. Electronic CRM (e-CRM) has also become important as more business is done online. e-CRM can help companies face the challenge that 65% of online customers who buy from a site once will not return by increasing loyalty, improving marketing, and providing better customer service. The customer gap refers to the difference between customer expectations and perceptions, and understanding customer requirements is key to closing this gap under a customer-

Uploaded by

SazanMstafa
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
You are on page 1/ 3

  What is the impact, if any, of CRM on customer retention and loyalty to brands?

 Customer Relationship Management Strategy is the way that companies uses to build a

relationship with customers to maintain customer loyalty (Schiffman,  L. S., & Kanuk, L.  L.

2007) that helps the companies in satisfying customers and increasing loyalty.

In today’s competitive environment customers are very important for the companies, while the

costs of acquiring new customers are higher than the cost of maintaining an available customer

relationship, and with the power of changing their long term and short-term strategies, thus,

having sufficient information which can be collected by Customer Relationship Management

about consumer’s desire and expectation enables the firm to identify which customers most

interested in retaining targeting them and providing them with offers to remain with the firm.

Moreover, CRM has a huge impact on customer satisfaction and as we now satisfy will make

customer loyalty to the firm.

Why is e-CRM important in the present day?

Electronic Customer Relationship Management has become the latest pattern of Customer

Relationship Management, each day business and consumer buying products through internet

grows, A study by the Boston Consulting group discovered that 65% on-line consumer who buy

at a specified website will never come back to purchase for the second time, this fact shows that

there is a real service gap in the web-enabled companies. ECRM can help the companies to face

this challenge (Sims, 2000).


The following can be achieved by implementing proper ECRM

 Increased customer loyalty.

 More productive marketing.

 better customer service, support and greater efficiency and cost cutting.

How can you explain customer gap under customer orientated marketing strategy.

The customer gap is the variance between customer prediction and customer perception,

customer gap is the most essential gap and in the ideal world customer’s expectation is almost

like the customer’s perception. in customer orientation strategy, providing a quality service for a

product needs to be based on understanding of the target market, the best way to close the gap is

understanding and customer’s requirement and knowing consumer’s prediction.

Reference:

Akhmedov, Ramis. (2017, August 22). (PDF) Implementation of CRM Strategies to Increase

Customer Loyalty, Case of Kazakhstan Companies. Retrieved from:

https://www.researchgate.net/publication/320823225_Implementation_of_CRM

Schiffman, L. S., & Kanuk, L. L. (2007). Consumer Behavour. Upper Saddle River, New

Jersey: Pearson, Prentice Hall.

Sims, David “A New ROI for New Economy CRM And Just Why Doesn’t High-Tech
Get It?” crmguru.com, April 2000.

The Customer Service Gap Model. (2019, September 26). Retrieved from:

https://brainmates.com.au/brainrants/the-customer-service-gap-model/

You might also like