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Essay / The Importance of Customer Relationship Management
No matter the size of your business, retaining a retailer's most valuable customers is one of the most important things. With the help of customer relationship management (CRM), many organizations are able to retain customers for long-term business success. In this article, I will discuss the definition of CRM, how has it changed from the past and what are the causes of these changes. While giving examples of successful businesses that use a customer relationship management system to improve their organization and satisfy their customers. Before the application of CRM system, relationship marketing was used in most organizations. It is a marketing strategy in which organizations focus on establishing and developing customer relationships and providing continuous quality products and services in order to increase profits. By doing so, organizations provide them with all the information about a particular product directly tailored to their needs and interests to ensure that they will get what they are looking for. In relationship marketing, companies mainly focus on increasing the number of individual sales and attracting customers, but not on retaining them. However, due to the development of technology, change in consumer behaviors, organizational attitudes, market situation and increase in the number of competitors in the global market, the concept of relationship marketing has also changed. Consumers no longer view themselves as passive consumers and their attention spans are much shorter. Additionally, technological advancements such as smartphones, online applications, multi-touch devices, 3D technology and HD video recording have given consumers greater choice and better products. Unlike 20 years ago this would have been impossible...... middle of paper...... all this information Tesco can create additional revenue. Customers also enjoy benefits by using the club card. Tesco offers cardholders discounts, rewards, special promotions and more to new and returning customers. Customers are very satisfied with the services and benefits they can benefit from. This is a win-win situation. In conclusion, the company should think more about how to satisfy and succeed its customers instead of focusing on how to improve the product or service team. The goal of CRM is not only to get customers to regularly visit a store or site and be satisfied with their experience, but also to ensure that they will not get involved in the activities of competitors who also aim to attract their customers. A good CRM system can surely produce brand fanatics and increase ROI effectiveness if managed perfectly..