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e-CRM

e-CRM

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Published by dralsayedkhalil
some short ideas about e-crm
some short ideas about e-crm

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Categories:Types, School Work
Published by: dralsayedkhalil on Jun 06, 2010
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05/30/2011

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e-CRM by Alsayed Khalil
E-CRM
Three Eras in the History of Marketing
1.
Production Era:
“A good product will sell itself.”
2.
Sales Era:
“Creative advertising and selling will overcomeconsumer resistance and convince them to buy.”
3.
Marketing Era:
“The consumer is king! Find a need and fillit.”
Profitability of Long-Life Customers
According to a study conducted by the American ManagementAssociation (as cited in Vavra, 1992), 65 percent of the averagecompany’s business comes from its present, satisfiedcustomers. Costs a company 6x’s more to sell a product to anew customer than it does to an existing one. A business thateach day for one year loses one customer who customarilyspends $50/week would suffer a sales decline of $1,000,000the next year. Reichheld (as cited in Swift, 2001) found thatcompanies could boost profits by 100 percent by retaining just5 percent more of their customers
Relationship Marketing
Relationship marketing involves long-term, value-addedrelationships developed over time with customers and suppliers.Definitions:
Relationship marketing refers to all marketing activitiesdirected toward establishing, developing, andmaintaining successful relationship exchanges
Morgan and Hunt (1994) theorized that successfulrelationship marketing requires relationshipcommitment and trust.
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e-CRM by Alsayed Khalil
 The authors proposed that relationship commitmentwas central to relationship marketing and that trust wascentral to all relational exchanges.
Database Marketing
 The development of database marketing has had atremendous effect on the improvement of marketingstrategy. Utilized initially by catalogs, record clubs, andcredit-card companies to manage customer information,databases are more widely accepted as a result of improvedtechnology.
 The growth in database marketing together with the switchfrom mass marketing to one-to-one marketing has changedthe face of relationship marketing.
The Changing Role of Relationship Marketing
 The role of technology has assisted in relationship marketingand has grown to represent a new form of competitiveadvantage.
Both marketing researchers and business practitioners haveidentified the implementation of technology as an essentialcomponent of relationship marketing
1.Customer Relationship Management Era
Customer relationship management (CRM) is a strategy usedto learn more about customers’ needs and behaviors inorder to develop stronger relationships with them.
It can be thought of as a process that will bring together lotsof pieces of information about customers, sales, marketingeffectiveness, and responsiveness and market trends
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e-CRM by Alsayed Khalil
Customer relationship management is an attempt to modifycustomer behavior over time and strengthen the bondbetween the customer and the company.
 The key to CRM is identifying what creates value for thecustomer and then delivering it (Newell, 2000).
Defining CRM
Customer relationship management is the process of:
1.
 Targeting, Acquiring, Servicing, Retaining and Building long-term relationships with customersIt is effectively relationship marketing, using customer data andfacilitated by technology
2.
Dr. Robert Shaw (as cited in C
ustomer RelationshipManagement 
, 2001) provides a more thorough definition of CRM. “Customer relationship management is an interactiveprocess for achieving the optimum balance betweencorporate investments and the satisfaction of customerneeds to generate the maximum profit”.CRM involves measuring both inputs across all functionsincluding marketing, sales and service costs and outputs interms of customer revenue, profit and value.3.Acquiring and continuously updating knowledge andcustomer needs, motivation and behavior over the lifetimeof the relationship.
4.
Applying customer knowledge to continuously improveperformance through a process of learning from successesand failures.5.Integrating the activities of marketing, sales and service toachieve a common goal.
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