The importance of keeping customers for as long as possible, in what Essay - 1

The importance of keeping customers for as capacious as possible, in what is seen often as a short-term approach to sales - Essay casingEnterprises have early understood the difficulty in acquiring customers and also the value of maintaining good birth with customer. Modern management techniques and use of IT though innovative means have defined added new dimensions to managing customer relationships. Now, for many enterprises empowering the customer has become a way of life, which in turn has led to shift in power with their customer relationships (Kotler et al., 2009). 2. Concept and definition Drotskie (2009) quoted Seybold (2002) and explained customer relationship management (CRM) means determining who your customers argon and building relationship with them, and Drotskie adds further that it involves understanding each and every customer so as to drive profiles of their item-by-item needs. Thus CRM enables the enterprise to understand the customer very closely so that its services go off be tailor-made to meet each individual requirement (Zeithaml & Bitner, 2003 cited by Drotskie, 2009, p. 15). Kotler et al. (2009) also support these definitions and tell that customer relation management as the process of c befully managing detailed information roughly individual customers and all customer touch points to maximise customer loyalty. ... ocuses to increase revenue, profits, and shareholder value through targeted trade activity such as developing, maintaining, and enhancing successful-customer relationships (Bolton & Tarasi, 2006). 3. Principles of customer relationship selling As Kotler et al. (2009) suggest, one of the important goals of marketing is to develop deep, enduring relationships with people and organisations that could directly or indirectly affect the success of the firms marketing activities. Relationship marketing aims to build mutually satisfying long-term relationships with key constituents in monastic order to earn and learn a nd retain their business (Kotler et al., 2009, p.22). Relationship marketing has four dimensions (1) customers, (2) employees, (3) marketing partners (channels, suppliers, distributors, dealers, agencies), and (4) members of the financial confederation (shareholders, investors, analysis) and its outcome is the marketing network, a unique asset for the company. Figure 1 The four dimensions of relationship marketing Adapted from source Kotler et al. (2209) Of these dimensions, the customer relationship marketing is most significant and more and more companies are now designing separate offers, services and messages to individual customers, that they gather based on information about past transactions, demographics, psychographics, and media distribution preferences (Kotler et al., 2009). Their objective is to build customer loyalty, by focus on the most gainful customers, products, and channels and achieve growth and capture larger share of customers pocket. This they undertake by e stimating individual customer lifetime value and design their market offerings and prices, which would enable them not to make blinking profit, but to make a profit over the