REFERENCE

CRM 101: What is CRM?

https://www.salesforce.com/crm/what-is-crm/#:~:text=Customer%20relationship%20management
%20(CRM)%20is,relationships%20to%20grow%20your%20business.

Background

https://www.agilitypr.com/pr-news/public-relations/businesses-increasing-investment-in-digital-
channels-and-ai-for-better-customer-experiences/

images:

https://www.canstockphoto.com/women-being-denied-service-for-not-85912039.html

costumer retentation

https://www.zendesk.com/blog/customer-retention/#:~:text=Customer%20retention%20definition%3A
%20a%20company's,service%20please%20your%20existing%20customers.

Customer Engagement

https://www.techtarget.com/searchcustomerexperience/definition/customer-
engagement#:~:text=Customer%20engagement%20is%20the%20means,media%2C%20mobile%20and
%20wearable%20devices.

Customer value

https://www.zendesk.com/blog/customer-value/#:~:text=is%20customer%20value%3F-,Customer
%20value%20is%20best%20defined%20as%20how%20much%20a%20product,do%20for%20that
%20particular%20person.

Relatice price

https://study.com/learn/lesson/relative-price-formula-examples.html#:~:text=Relative%20price%20is
%20the%20price,price%20of%20the%20second%20good.
Customer Retention

Think of customers as a flowing stream and your business as your hand as you scoop water. Your hand
may have the capacity to hold some, but it cannot fully contain the fast flow of water and its total
volume. This simply implies that you cannot satisfy everyone, and even some customers that land on
your hand can just slip away in time. It is the main task of businesses to keep customers and retain their
loyalty. Normally, a business may lose 50 percent of its customers per year, which may affect the
stability of the business's cash flow if it cannot retain its customers. Widely considered in the industry as
the norm, the Pareto principle also takes effect in most businesses where 80 percent of the cash flow is
generated from transactions with 20 percent of their repeat customers. This implies that businesses can
thrive just by focusing on customer retention. What is challenging, rather, ishow businesses can hold on
to their cash cows.

Customer Engagement

While maintaining customers is one factor, developing new loyal customers is another factor that should
be looked into regarding customer relations management. We are looking into creating new ardent
consumers, but the challenge is how businesses can achieve more value from new customers and turn
them into brand advocates that can carry the brand or company to a whole new audience through
word-of-mouth marketing or referrals.

Customer De-selection

Unknown to many, businesses should also be wary of customers that can bring down the company's
overall value. Not all customers are good for the organization as some may be too disruptive, costly, or
tenuous to retain. Some may even pose a danger to the brand's reputation or cause harm to employees
if not given much attention and care in dealing with them. Transaction and opportunity costs tend to be
higher on these customers who tend also to give less value than what the organization has spent in
maintaining them. Therefore, it is also an important part of customer relations to select customers in
some situations.

The Value of the Customer

Customer relations management's bottom line is how the company can reap more value from customers
sustainably and repeatedly over time. Loyal customers are more valuable than others because of the
overall value they bring to the company. Customer loyalty also brings more income by turning the
customers themselves as brand advocates or evangelists that push the brand beyond its marketing
reach at zero cost. A vital element of this is the emotion that customers have toward your company or
brand. Without this human connection, brands tend to fail to acquire and maintain customers through
years and decades of operation.