Relationship Marketing

Using Digital Platform

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 1

 Transactional Marketing vs Relationship
Marketing

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 2

 SCM → CRM, ISCM and SRM

•Customer Relationship Management (CRM): a term that broadly refers to planning and control
activities and information systems that link a firm with its downstream customers.
•Internal Supply Chain Management (ISCM): a term that refers to the information flows between
higher and lower levels of planning and control systems within an organization.
•Supplier Relationship Management (SRM): a term that broadly refers to planning and control
activities and information systems that link a firm with its upstream suppliers.

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 3

 SCM → CRM, ISCM and SRM

Examples of SRM and CRM Applications:

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 4

 Online Voice of Customer (VoC),
Customer Satisfaction and Customer Loyalty
•Online Voice of Customer (VoC): qualitative assessments of the effectiveness of digital presence
based on direct customer feedback.
•Customer Satisfaction: the extent to which a customer’s expectations of product quality, service
quality and price are met.
•Customer Loyalty: the desire on the part of the customer to continue to do business with a
given supplier over time.

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 5

 Using Social Media to Improve
Customer Loyalty and Advocacy
•Organic Social Media Marketing: using social networks and customer communities to develop
relationships, share positive opinions through social media amplification and manage negative
social media comments.
•Social Media Amplification: a method of increasing awareness of a brand through organic and
paid sharing of social media updates via social networks as organic social posts and adverts are
displayed in the stream of social network users.
•Social CRM: the process of managing customer-to-customer conversations to engage existing
customers, prospects and other stakeholders with a brand and so enhance customer
relationship management.

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 6

 Customer Engagement
•Customer Engagement: repeated interactions through the customer lifecycle prompted by
online and offline communications aimed at strengthening the long-term emotional,
psychological and physical investment a customer has with a brand.
•According to Forrester, engagement has four parts, which can be measured both online and
offline:
• Involvement: includes website visits, time spent, pages viewed.
• Interaction: contributed comments to blogs, quantity/frequency of written reviews and
online comments as well as comments expressed in customer service.
• Intimacy: sentiment tracking on third-party sites including blogs and reviews, as well as
opinions expressed in customer service calls.
• Influence: advocacy indicated by measures such as likelihood to recommend, brand affinity
and content forwarded to friends.

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 7

 Customer Engagement by Gamification

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 8

 Marketing applications of CRM
CRM systems support the following marketing applications:
1. Sales Force Automation (SFA): sales representatives are supported in their account management through tools
to arrange and record customer visits.
2. Customer Service Management: representatives in contact centers respond to customer requests for
information by using an intranet to access databases containing information on the customer, products and
previous queries. It is more efficient and may increase customer convenience if customers are given the option
of web self-service or install apps in their mobile device.
3. Managing the Sales Process: through e-commerce sites or in a B2B context by supporting sales representatives
by recording the sales process (SFA).
4. Customer Communications Management: managing communications integrated across different channels
including direct mail, email, mobile messaging, personalized web messages and social networks.
5. Analysis: through technologies such as data warehouses and approaches such as data mining, customers’
characteristics, their purchase behavior and campaigns can be analyzed in order to optimize the marketing mix.

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 9

 Customer Lifecycle Management Strategy
•Customer Selection: identifying key customer segments and targeting them for relationship
building.
•Customer Acquisition: strategies and techniques used to gain new customers.
•Customer Retention: techniques to maintain relationships with existing customers.
•Customer Extension: techniques to encourage customers to increase their involvement with an
organization (re-sell, cross-sell, up-sell, reactivation, referrals).

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 10

 Thank You

Dr Alexander SE, MM MARKETING MANAGEMENT AND STRATEGY IN DIGITAL ERA 11