Loading...

Customer Relationship Marketing - viewpoints and aspects about crm

Seminar Paper 2004 9 Pages

Business economics - Marketing, Corporate Communication, CRM, Market Research, Social Media

Excerpt

Table of contents

Introduction

1. Positive expert opinions about CRM in practice
1.1 The “right” customer
1.2 Product and service offerings
1.3 Loyal employees
1.4 Measurement systems
1.5 The cost of losing customer
1.6 Detections Management

2. Negative expert opinions about CRM in practice
2.1 Profitability of loyalty
2.2 Loyal customers are cheaper to serve
2.3 Loyal customers pay more for the same products
2.4 Loyal customers support their company

3. Personal justification about CRM

Conclusion

Bibliography

Introduction

The following report is illustrating the various viewpoints of several experts as well as the personal opinion of the author of this report about customer relationship marketing in practice.

The experts viewpoints are based on selected articles handed out during lecture.

Whereas the personal viewpoint illustrated in this report derives from personal experience as well as asorted literature used for preparation.

1. Positive expert opinions about CRM in practice

The first articles main message I would like to discuss describes the importance of loyal customers in order to build a profitable and faithful customer base.

The author Mr. Reichheld is convinced about the fact that only loyal-based management will keep customers in a long-run attached to a company. Furthermore will this kind of management have a positive effect on future profits and competitiveness.

The second article is also written by Mr. Reichheld in cooperation with Mr. Sasser, JR and describes how to keep customers and follow the ones that defected.

In the following the reader will be presented Mr. Reichheld’s arguments supporting the idea of loyalty-based management as well as the criteria for a successful implementation.

First of all he states that awareness and understanding of the relationships between customer retention and all the business and the ability of defining the links between loyalty and profits are essential in order to have a satisfying performance of this system.

He points out four important aspects such as

- Customers
- Product/Service offerings
- Employees
- Measurement systems

His basic message is that: “When a company consistently delivers superior value and wins customer loyalty, market share and revenues go up, and the cost of acquiring and serving customers goes down.”[1]

By doing so and reaching a better efficiency a whole chain of positive effects is being triggered as following:

1. increased payments increase employees morale and commitment
2. because of that employees stay longer and their productivity increases whereas training costs decrease
3. the employees general high job satisfaction in conjunction with their knowledge and experience
4. is leading to quality service to customers
5. and because of that customers will stay loyal to the company
6. and last but not least customers as well as employees become a part of the loyalty-based system

[...]


[1] Frederick F. Reichheld, Loyalty-based management

Details

Pages
9
Year
2004
ISBN (eBook)
9783638434706
File size
561 KB
Language
English
Catalog Number
v46237
Institution / College
University of Applied Sciences Groningen – International Business School
Grade
2
Tags
Customer Relationship Marketing Current Issues

Author

Share

Previous

Title: Customer Relationship Marketing - viewpoints and aspects about crm