CRM is not a process or technology per se; rather it is a way of thinking and acting in a customer-centric fashion. (Rainer, 2013).
Handling customers and building a positive two way relationship has become an important part for every businesses today. Far to often managers are blinded by the general assumption that an investment into CRM-systems and using the gained data would make their own business achieving a competitive advantage and therefore more profitable. Unfortunately CRM is more complex and not that easy to handle as I will state in the following.
The general concept is to manage a company’s interaction with current and future customers. To do so, there are different ways ...view middle of the document...
They need to know how their customers feel and how they tick to build a strong and on-going relationship.
CRM in practice can appear in many different ways and it is still not clear which way is the best to build up a relationship with customers. Furthermore it also depends heavily on the industry the businesses are in. A business that sells motorbikes has to deal with their customers in a different way than a business at a high street shop. The most well known CRM-practice is probably loyalty programs. Here businesses try to hold their customers by attracting them with reward for shopping. It does not matter if these rewards are financial or material or whatsoever. People are definitely getting fixed to this business and create sales. Unfortunately this method is not efficient at identifying the reasons to encourage them to stay.
To understand how customers tick there are more efficient practices and strategies.
Businesses need more robust data to assemble a more complete story of people’s needs and expectations and how their brand, product or service helps them in their lives. Developing this deep understanding involves scanning for, listening to, and interpreting the subtle signals that customers send during transactions. A good example from the real world is the system called “Mystique” from the Marriott International´s Ritz-Carlton hotel. The system collects all staff observation about the guest- everything from the kind of fruit left on room-service plate to a guest oncoming cold. By adding contextual data obtained when talking with customers or when shadowing purchasers through service interactions or store visits, companies can expand their customer understanding and improve their relationship with them. Other companies like Harley Davidsons developed a different strategy. To understand how their customers tick they have employed professional ethnographic to analyse the lifestyle of HD. The company requires executive to spend some time in the field to get a deeper and better understanding about the peoples experience. With the gained results the company can conform their own strategy and build a better relationship. As mentioned before it is very important that business understand that there are different strategies for their customers. The Landscape of Brand Relationships points about 18 different types of relationships. For example the addicted relationship (Marlboro- high in emotional...