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Customer Realtionship Marketing

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Defining a new concept normally follows a winding and time-taking path, and this applies to the case of CRM. Over time the understanding of CRM has enlarged to find that it functions through the three domains, which are operational, analytical, and collaborative. The common thread that weaves through these domains of CRM is that these activities are all targeted towards enhancing the revenue and profitability of an organization through proactive interaction with the customer. Thus customer CRM is not a marketing activity that focuses on providing delight to the customers or demonstrates the love that the business organization has for its customers. Instead, CRM is all about identifying the appropriate CRM actions to the right customer segments at the right time to produce the required business objectives (Greenberg, 2004) A simple definition of CRM may lie in considering it as the marketing efforts that are executed towards the establishment, development, and maintenance of successful relational exchanges with customers. A better understanding of CRM is to focus on the four pillars or concepts on which it stands. The first pillar or concept is that CRM is all about the commercial relationships between economic partners, serviced providers and customers at the several layers present in the marketing channel and also the wider business environment. The second pillar or concept results from this understanding and consists of the development, maintenance and termination of such relationships, in such a manner as to ensure that every party to such a relationship is able to achieve their objectives towards that is mutually beneficial. The third pillar or concept is profit, which is the underlying concern of any business organization and that this relational objective isachieved through the fulfillment of promises given. The final pillar or concept is the presence of trust in the relationship, which is essential for the fulfillment of promises given, from which trust is derived.