Customer Relationship Management
The Foundation of Contemporary Marketing Strategy
Roger J. Baran, Robert J. Galka
- 450 pages
- English
- ePUB (mobile friendly)
- Available on iOS & Android
Customer Relationship Management
The Foundation of Contemporary Marketing Strategy
Roger J. Baran, Robert J. Galka
About This Book
This book balances the behavioral and database aspects of customer relationship management, providing students with a comprehensive introduction to an often overlooked, but important aspect of marketing strategy.
Baran and Galka deliver a book that helps students understand how an enhanced customer relationship strategy can differentiate an organization in a highly competitive marketplace. This edition has several new features:
-
- Updates that take into account the latest research and changes in organizational dynamics, business-to-business relationships, social media, database management, and technology advances that impact CRM
- New material on big data and the use of mobile technology
- An overhaul of the social networking chapter, reflecting the true state of this dynamic aspect of customer relationship management today
- A broader discussion of the relationship between CRM and the marketing function, as well as its implications for the organization as a whole
- Cutting edge examples and images to keep readers engaged and interested
- A complete typology of marketing strategies to be used in the CRM strategy cycle: acquisition, retention, and win-back of customers
With chapter summaries, key terms, questions, exercises, and cases, this book will truly appeal to upper-level students of customer relationship management. Online resources, including PowerPoint slides, an instructor's manual, and test bank, provide instructors with everything they need for a comprehensive course in customer relationship management.
Frequently asked questions
Part I
CRM Theory and Development
Chapter 1
Introduction to Customer Relationship Management
- 1.1 Definition of CRM and CRM Applications
- 1.2 The Purpose and Benefits of CRM
- 1.3 The Tangible Components of CRM
- 1.4 Customer Service and the Customer Engagement Center
- 1.5 Important Business Constructs Related to CRM
- 1.6 Who Uses CRM and Why?
1.1 Definition of CRM and CRM Applications
- Strategy development: At both the business level and customer level, with the latter involving decisions regarding the appropriateness of various customer segmentation approaches: mass, segmented, and one-to-one.
- Value creation: Involves determining what product/service attributes customers value and which customers and customer segments are valuable to the company. CRM enables companies to identify and direct relationship efforts to those with high customer lifetime values (CLV).
- Multichannel integration: Involves efforts to provide the âperfect customer experienceâ through integrating all of the means by which consumers interact with organizations including: e-mail, mobile, social media, sales personnel, outlets, customer engagement centers (formerly called call centers or customer contact centers), direct marketing, e-commerce, m-commerce, chat, etc.
- Information management: Involves collecting, organizing, and using customer data and customer information from all touch points (any point of contact that a customer or prospect has with the company) in order to learn more about each customer and generate the appropriate marketing response.
- Performance assessment: Includes measuring the success of CRM efforts through metrics on customer acquisition, retention, win-back, satisfaction, loyalty, and profits.
- Those that equate CRM with a software package, process, system, or technology.
- Those that equate CRM with a focus on data storage and analysis.
- Those that equate CRM with a change in corporate culture from a transaction focus to a relationship or customer-centric focus. (The key focus here is on establishing a dialogue with each customer on a one-to-one basis as opposed to generating merely a corporate monologue with large segments of customers.)
- Those that equate CRM with the important concept of âmanaging demand.â
- Those that equate CRM with new strategies focused on current customers (identification, selection, acquiring, developing, cross-selling and up-selling, managing migration, and win-back).
- A data warehouse containing customer, contract, transaction, and channel data. Company customer data and programs are increasingly being stored and accessed over the Internet (the âcloudâ) instead of on a companyâs computer hard drive. The main purpose of data storage is to enable managers to develop strategies and close the loop that begins with the system that stores customer data. A data warehouse is the repository for all relevant customer and prospect information. Basically anything related to a marketing activity can be included in the data warehouse, including information from each customer touch point, sales force input, and even survey data.
- Analytical tools to identify customer behavior patterns.
- Campaign management tools to develop and evaluate the results of marketing communications, such as advertising and sales promotion campaigns.
- Interfaces to maintain the database.
As a Software Package, Process, System, or Technology: âCRM systems are parameter-adjustable software packages that are intended to integrate and manage all aspects of customer interactions within the organization, and so considerably improve the ability of the organization to handle customer service, sales, marketing, online transactions, and orders.â4 |
âCRM is a process to compile information that increases understanding of how to manage an organizationâs relationship with its customers... . It is a business strategy that uses IT to provide an enterprise with a comprehensive, reliable, and integrated view of its customer base so that all processes and customer interactions help maintain and expand mutually beneficial relationships. CRM is thus a technique or a set of processes designed to collect data and provide information that helps the organization evaluate strategic options.â5 |
As Data Storage and Analysis: âCRM is the process of storing and analyzing the vast amounts of data produced by sales calls, customer-service centers, and actual purchases, supposedly yielding greater insight into customer behavior. CRM also allows a business to treat different types of customers differentlyâin some cases, for instance, by responding more slowly to those who spend less or charging more to those who require more expensive handholding.â6 |
As a Culture Change within the Organization Itself: âCRM is first and foremost a corporate culture changeâthat is, a different way of doing business, enabled with powerful technology at every customer touch point.â7 |
As a Management Practice that Focuses on Relationships as Opposed to Transactions: âA broader definition of CRM would include all activities that turn casual consumers into loyal customers by satisfying or exceeding their requirements to the extent that they will buy again.â8 |
âCRM is an ongoing process that involves the development and leveraging of market intelligence for the purpose of building and maintaining a profit-maximizing portfolio of customer relationships.â9 |
As a Practice that Manages Demand: âCRM is the dynamic process of managing a customerâ company relationship such that customers elect to continue mutually beneficial commercial exchanges and are dissuaded from participating in exchanges that are unprofitable to the company.â10 |
As a Strategy that Focuses on Current Customers: âCRM comprises the business processes an organization performs to identify, select, acquire, develop, retain, and better serve customers. These processes encompass an organizationâs end-to-end engagement with its customers and pros... |