Crm-Old Wine in a New Bottle
CUSTOMER RELATIONSHIP MANAGEMENT – ‘AN OLD WINE IN ANEW BOTTLE’
INTRODUCTION:
Customer relationship is not a new concept; companies have been interacting and dealing with customers since the inception of trade. Earlier more focus and attention was on product and services instead of customer centric.
With increase in competition because of globalization and usage of internet changed the picture of business. Customers have variety to choose from, more knowledge about the companies and products surely has titled power at customers’ side. With this scenario, companies realize the need of treating customers with utmost care. Therefore, searching for innovative ways to manage relationships effectively, not only to acquire new customers but also to retain the existing one.
CUSTOMER RELATIONSHIP MANAGEMENT:
“CRM is the process of managing detailed information about individual customers and carefully managing all the customer ‘touch points’ with an aim of maximum customer loyalty”
Acquiring new customers can cost five times more than costs involved in satisfying and retaining current customers. More companies are recognizing the importance of satisfying and retaining customers, which constitute the company’s relationship capital
To retain the customers’ better approach is to deliver high customer satisfaction. Customer relationship management is about taking a long term approach to building relationships with customers.
In olden days, business people and organizations would know their customer base from seeing them on a daily basis and learning their preference based on the relationship they shared with the customers. CRM is emerged as critical for organization in 1960’s where marketers found that 4p’s of marketing framework-product, price, place and promotion were less valuable without ongoing relationships with customers. Companies started putting customers in the middle of marketing program.
In early days of CRM, there was no
INTRODUCTION:
Customer relationship is not a new concept; companies have been interacting and dealing with customers since the inception of trade. Earlier more focus and attention was on product and services instead of customer centric.
With increase in competition because of globalization and usage of internet changed the picture of business. Customers have variety to choose from, more knowledge about the companies and products surely has titled power at customers’ side. With this scenario, companies realize the need of treating customers with utmost care. Therefore, searching for innovative ways to manage relationships effectively, not only to acquire new customers but also to retain the existing one.
CUSTOMER RELATIONSHIP MANAGEMENT:
“CRM is the process of managing detailed information about individual customers and carefully managing all the customer ‘touch points’ with an aim of maximum customer loyalty”
Acquiring new customers can cost five times more than costs involved in satisfying and retaining current customers. More companies are recognizing the importance of satisfying and retaining customers, which constitute the company’s relationship capital
To retain the customers’ better approach is to deliver high customer satisfaction. Customer relationship management is about taking a long term approach to building relationships with customers.
In olden days, business people and organizations would know their customer base from seeing them on a daily basis and learning their preference based on the relationship they shared with the customers. CRM is emerged as critical for organization in 1960’s where marketers found that 4p’s of marketing framework-product, price, place and promotion were less valuable without ongoing relationships with customers. Companies started putting customers in the middle of marketing program.
In early days of CRM, there was no