It’s the inevitable truth and a relationship that must be knotted up well!
Customer Relationship Management (CRM) programs are directly responsible because of unique demands and higher level of expectations that consumers possess. Therefore Relationship Marketing has caused a massive deal of excitement within the marketing industry. It is always beneficial for every company to put their customer needs at the core of their marketing strategies. It’s because of this reason small thoughts become BIG ideas.
In the past, multiple companies used to choose Product-focused marketing, which often results in them, contacting individuals several times with irrelevant messages about different products. However, this application is being replaced by customer centered systems that are aimed at establishing a collaborative communication process with customers and potential customers.
The marketing model shifts from mass marketing to one-to-one marketing where traditional market segments theoretically, become a one-person segment. The growth of the customer-centric business strategies has led to an increasing emphasis on finding the overall profitability by calculating a customer lifetime value.
Companies also make enormous investments to acquire customer databases that collect data based on their purchasing behavior. So from here individuals from different companies realize that CRM is more than just relationships that emulate the relationship between customers and local shopkeepers. Companies are beginning to realize that retaining customers over the long term is a key ingredient to secure profitability on their side.
The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.
For Customer Relationship Marketing to be successful, marketing and IT departments must work together and describe different kinds of memories and elements of faith that represent a perfect agreement between customer and a company. This means that a CRM strategy must be sanctioned and supported by senior management and embraced by every department, to ensure that different parts of the company do not operate in a territorial way that undermines the value of what the purpose stands for.
Although CRM is an excellent way of tapping into what one’s ultimate customer needs it also has its own set of drawbacks. The main problem with the CRM idea is that although companies are intent on building these foolproof associations, customers themselves are absolutely not interested. Yes, people want to deal with brands they trust, but loyalty is probably less to do with any emotional attachment they feel than with inertia relating to the effort involved in switching allegiances. At the same time, one cannot assume that companies that listen to customers’ views are not appreciated; it is that this has become an expectation.
Some times, the idea of uncertainty arises when customer information is used effectively. Analogies to a big brother state are invited when companies analyze data and market the brand to customers accordingly. It might be a reasonable assumption that a 27-year-old Mr. Gupta, who opened a joint account with his wife one year ago and has moved to a bungalow with a garden, is planning to start his family. Therefore, when the bank uses this information to promote a loan for decorating the nursery, Mr. Gupta might be slightly unnerved.
The challenge for marketers is to get the balance right being helpful and being intrusive!.