In today’s market customer is king and every activity gives centre place to the customer because this Is time to make your business customer oriented.
ARM Is defined as the Identification, establishment, maintenance, enhancement, modification and termination of relationships with Customers to create value for them and profit or organization by a series of relational exchanges that have both a history and a future and in which information technology plays vital role Information technology in relationship marketing (ARM) is one of the Key functions in enhancing business performance. This paper describes how I. T helps to maintain this relationship because market is enlarging with the customer as well as its importance in relationship marketing.
General information may be converted in valuable source for any business through it. It also focuses on particular relationship marketing with some important aspects of it. Relationship marketing is mostly used by every firm ND for every product. The first strategy of any firm is to maintain customer and without computerizing It Is not easy. Introduction Relationship marketing Is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication.
This approach often results in increased word-mouth activity, repeat business and a willingness on the customers part to provide information to the organization. Modern consumer marketing originated In the asses and asses as companies found It more profitable to sell relatively low-value reduces to masses of customers. Over the broaden the scope of marketing, relationship marketing being one of these attempts. Arguably, customer value has been greatly enriched by these contributions.
Relationship is very much important for any business which creates report with their customer. The consistent application of up to date knowledge of individual customers to product and service design in order to develop a continuous long term relationship In the ass, studies have shown that “it is 6 time more expensive to Gain a new customer than to retain an existing one”. Statistics like this pushed the industry o become more knowledgeable and intimate with customers.
Definition marketing: increasing customer satisfaction and increasing switching barriers” Benefits through Relationship Marketing We are talking about relationship marketing then first start with some definition of it : “Relationship Marketing refers to a long-term and mutually beneficial arrangement where both the buyer and seller have an interest in providing more satisfying exchange. This approach attempts to transcend the simple paperhanging’s process with a customer to make more meaningful and richer contact by providing a more holistic, personalized purchase, and uses the
According to Lima Alive, “Relationship marketing can be applied when there are competitive product alternatives for customers to choose from; and when there is an ongoing and periodic desire for the product or service. ” “Foretell and Heartfelt used the term “Defensive marketing” to describe attempts to reduce customer turnover and increase customer loyalty. This customer-retention approach was contrasted with “offensive marketing” which involved obtaining new customers and increasing customers’ purchase frequency.
Defensive marketing focused on reducing or managing the dissatisfaction of your customers, while offensive marketing focused on “liberating” dissatisfied customers from your competition and generating new customers. There are two components to defensive Improving cost efficiency and effectiveness of marketing campaigns Cross selling opportunities Reducing customer attrition/churn Tailoring prices, offers, or product components to specific types of Customers Provision of single point of contact with a customer Relationship marketing is cross-functional marketing.
It is organized around processes Generally we are focusing on relationship marketing where one have to focus on loyalty, quality, and most important distraction because this is only factor which make your relation strong with your customer if they are happy and satisfy then they are giving less preference and not easily switch over on other product. So satisfaction plays very vital role in Relationship marketing.
If whole dealing will be reliable on mass marketing then who is the customer is doesn’t matter but talk of individual marketing then who is and what as well as when means customer, proposition and time is always matter. This terminology is divided into four different steps, in which first step is to identify and then differentiate them according to their needs. Now next step is to interact and then whatever information you have, Just customize and bifurcate it related with product, service and information.
As per your need you can differentiate and customize the data in which identification and interaction provide you back up support The practice of relationship marketing has been facilitated by several generations of relationship management software that allow tracking and analyzing of each customer’s preferences, activities, tastes, likes, dislikes, and complaints. For example, an automobile manufacturer maintaining a database of when and how repeat customers buy their reduces, the options they choose, the way they finance the purchase etc. Is in a powerful position to develop one-to-one marketing offers and product benefits. In web applications, the consumer shopping the website. This information is then used But now major issues is how to maintain or reorient that relation with the customer because customer is main focus for everyone. Switching over on another brand is very easy because it is time of cut thought competition. As well as customer are also increased day by day for company it is difficult to maintain relation with them manually and how to constantly connect tit them is main issue.
Let’s start with information technology once again because if IT is their work is very easy because it manage work so smoothly, once you enter the data then rest of time enjoy the relation only. And after that your IT department maintains relation with the customer time to time. To compute what can be his or her likely preferences in other categories. These predicted offerings can then be shown to the customer through cross-sell, email recommendation and other channels.
Relationship marketing has also migrated back into direct mail, allowing marketers to take advantage of the technological abilities of digital, toner-based printing presses to produce unique, personalized pieces for each recipient. Marketers can personalize documents by any information contained in their databases, including name, address, demographics, purchase history, and dozens (or even hundreds) of other variables. In CRM process relationship marketing is most important part on which other processes are built, where four functions are playing main role to manage whole system.
Benefits and challenges of CRM Benefits The three phases in which CRM support the relationship between a business and its customers are to: The use of a CRM system will confer several advantages to a company: Acquire: CRM can help a business acquire new customers through contact management, selling, and fulfillment. Enhance: web-enabled CRM combined with customer service tools offers customers service from a team of sales and service specialists, which offers customers the convenience of one-stop shopping.
Retain: software databases enable a business to identify and reward its loyal customers and further develop its targeted marketing and relationship marketing initiatives. Quality and efficiency Decreased costs Decision support Enterprise agility Challenges Tools and workflow can be complex, especially for large businesses. Previously these tools were generally limited to contact management: monitoring and Software solutions then expanded to embrace deal tracking, territories, opportunities, and at the sales pipeline itself.
Next came the advent of tools for other client-interface business functions, as described below. These tools have been, and still are, offered as on-premises software that companies purchase and run on their own IT infrastructure. Types/variations in CRM 1. Sales force automation – Sales force automation (SEA) involves using software to streamline all hashes of the sales process, minimizing the time that sales representatives need to spend on each phase. This allows sales representatives to pursue more clients in a shorter amount of time than would otherwise be possible.
At the heart of SFA is a contact management system for tracking and recording every stage in the sales process for each prospective client, from initial contact to final disposition. Many SFA applications also include insights into opportunities, territories, sales forecasts workflow automation, quote generation, and product knowledge. 2. Marketing CRM systems for marketing help the enterprise identify and target potential linens and generate leads for the sales team.
A key marketing capability is tracking and measuring multiplicand campaigns, including email, search, social media, telephone and direct mail. Metrics monitored include clicks, responses, leads, Relationship Management (PRM) solutions offer to track customer behavior and nurture them from first contact to sale, often cutting out the active sales process altogether. In a web-focused marketing CRM solution, organizations create and track specific web activities that help develop the client relationship.
These activities may include such activities as free downloads, online video content, inline web presentations. 3. Customer service and support Recognizing that service is an important factor in attracting and retaining customers, organizations are increasingly turning to technology to help them improve their clients’ experience while aiming to increase efficiency and minimize costs. Even so, a 2009 study revealed that only 39% of corporate executives believe their employees have the right tools and authority to solve client problems. “. 4.
Analytics Relevant analytics capabilities are often interwoven into applications for sales, marketing, and service. These features can be complemented and augmented with inks to separate, purpose-built applications for analytics and business intelligence. Sales analytics let companies monitor and understand client actions and preferences, through sales forecasting and data quality. Marketing applications generally come with predictive analytics improve segmentation and targeting, and features for measuring the effectiveness of online, offline, and search marketing campaigns.