Relationship Marketing – sigma https://www.managementstudyguide.com Wed, 12 Feb 2025 09:52:36 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://www.managementstudyguide.com/wp-content/uploads/2025/02/msg.jpg Relationship Marketing – sigma https://www.managementstudyguide.com 32 32 CRM as Relationship Marketing Tool https://www.managementstudyguide.com/crm-and-relationship-marketing.htm Wed, 12 Feb 2025 09:52:36 +0000 https://sigma.managementstudyguide.com/sigma/crm-and-relationship-marketing.htm/ In the so called Modern times, we happen to be living in a fast paced high tech society. Use of technology has become the backbone of our daily life. You are able to be in the comfortable environs of your home or office and manage all of your domestic chores such as banking, booking an airline ticket or buying insurance online.

You are so used to dealing with a particular bank, Credit Card Company or an airline and know their process by heart that you find yourself preferring to use them and resist any attempt to bank with a new bank or switch the airline.

Haven’t you been happy when the customer care executive that you called at the credit card company waived the late fee in view of your longstanding relationship?. You also notice that they try to call you and make irresistible offers to keep you happy. If you are wondering as to how they manage to get to know you better amidst thousands of customers, this is CRM helping the Companies manage to get closer to each individual customer while serving such huge customer base.

Technology has given way to the development of CRM software and processes that have made it possible for Companies to achieve multiple objectives. Many confuse Relationship Marketing with CRM. In reality CRM is the tool used by RM practitioners.

Using CRM Companies can get to work on getting closer to the customer and establishing an interactive relationship with the customer. CRM further helps enhance the customer interaction by providing standardized process as well as clear cut guidelines for the customer redressal.

CRM includes and involves IT Hardware infrastructure, Software, Communication network as well as customization depending upon the Organization, its business and the customer. For CRM to be successful, the customization has to be based on the Relationship Marketing strategies and policies drawn up by the Company.

Before customizing the CRM, there has to be an effort made to get under the skin of the customer and look at transactions and the needs of the customer through his eyes. Only when the customer needs are anticipated and addressed can the CRM become successful.

When it comes to Relationship marketing, Organizations have realised that an automated CRM process is not desired by one and all and that human interaction is very much the unsaid need in every single transaction.

Call centres have managed to emerge and grow as a business solution simply because of the human element that combines with the technological advantage.

CRM is undoubtedly a very useful tool for the Marketing professionals to get closer to their customer. Using CRM effectively they are able to offer customised marketing to individual customers and to a very large customer base.

Companies can use the data warehousing and data mining techniques to get to know all about the customer including his personal details like birthdays, anniversaries as well as store details of his past transactions, his likes and dislikes as well as his preferences etc.

Using statistical tools the data gathered can be used for extrapolation to anticipate customer behaviour and the market trends.

In case of personalised service businesses like banking or hotel industry, this kind of data on the customer helps the Companies customise the service delivery to the individual.

Customer retention and customer loyalty are the positive outcomes of a successful Relationship Marketing CRM process.

Organizations today have accepted the fact that customer relationship is one area that they have got to focus upon and invest into. Technology has been able to make this relationship work and enhance the value of relationship between the customer and the Organization.

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Relationship Marketing – Company and Marketing Perspective https://www.managementstudyguide.com/company-and-marketing-perspective-relationship-marketing.htm Wed, 12 Feb 2025 09:52:33 +0000 https://sigma.managementstudyguide.com/sigma/company-and-marketing-perspective-relationship-marketing.htm/ We are living in the high tech times. Technology and changing economy have changed the rules the way a business is done. Business organizations have to tune in to various markets and know the customers well.

The successful companies are those who have been able to anticipate the customer need and innovate future products leveraging on technology. In a global as well as local scenario, customer holds the key to the growth of business and organizations.

No wonder that when you open your mail box or your email, you are always flooded with marketing communication from all possible companies trying to build a relationship with you. Take a look at the cards in your wallet and you must be holding quite a few membership cards that make you feel privileged and keeping bringing rewards and prompting you to extend your relationship with them.

Relationship Marketing has never been more important for the Organizations as it has been now. In the field where competition is intense and life cycle of products and services is very small, customer relationship has emerged to be one of the key drivers to contribute a large chunk of sales revenue. When we talk of relationship marketing, we are not referring to customer service. Customer service refers to the quality of service on a transactional mode. By Relationship Marketing, we are referring to the level of Relationship that exists between the customer and the company.

In terms of Relationship, there can be several ways of defining or measuring the quality of relationship with the Customer. Understanding of the depth of relationship and qualifying can help the Company in improving its reach to the markets as well as work towards increasing the depth of the relationship with the customer. In the first instance, we have a happy customer who has bought the product or a service and found it satisfactory.

When the Company reaches out to communicate with him and anticipate his future needs, he can be converted to a faithful customer. A faithful customer may be a repeat customer who does continues to buy the product from the company on repeat basis without making an effort to look at alternatives.

However, at this stage the customer can be influenced and be vulnerable to competition as well as price sensitivity.

Relationship marketing by the Company can help convert this customer from a faithful customer to a loyal customer.

A loyal customer is one who has made an informed decision to go with the particular Company, is happy with the product, is loyal to the brand and is likely to advocate the same brand to friends and family because he believes in the Product as well as the Company and values the relationship.

Apart from customer service, there are several marketing programmes and loyalty programmes besides brand advertising that the Companies carry out to build the relationship with the customer.

Relationship marketing gets translated and implemented through the marketing strategies, promotional programs as well as through marketing communication programs.

When implemented as a part of marketing strategy, the relationship is normally focussed on leveraging the brands and products of the Company with the customer.

Besides the marketing activities, the Companies implement internal and external corporate communications too keeping in view the Customers.

Marketing strategies are required to define the relationship marketing strategies for each of the product or service category taking into account the geographies, the customer profile as well as the overall RM objective of the Company.

The RM strategy in case of a product company would be different from that of a service company and the element of communication design strategy would need to be different for a product from that of a service.

In case of a product, the Customer is likely to respond in terms of brand, tangible and quantifiable performance of the product and the satisfaction derived from post sales service.

In case of service, however, there is no tangible product and the customer’s expectations are different when it comes to service that is mainly concentrated around his perceptions and experience.

Therefore understanding the concept of Relationship marketing, the difference between RM and Customer Service as well as the ways and means of implementing or achieving RM objectives through effective marketing strategies is important for all the marketing managers and students who are going to be the drivers to defining, planning, detailing and implementing marketing strategies. An effective Marketing Manager should be able to effectively design marketing policies and strategies that are aligned with the Company’s RM objective and help build the relationship between the Company and Customer, Partners as well as the intermediaries who are critical to one’s business.

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The future of relationship marketing https://www.managementstudyguide.com/future-of-relationship-marketing.htm Wed, 12 Feb 2025 09:52:22 +0000 https://sigma.managementstudyguide.com/sigma/future-of-relationship-marketing.htm/ Introduction

Relationship marketing is a modern concept. This concept focuses on developing, maintaining and retaining long term relationship with customers for the benefit of the organization. Relationship marketing is a strategic concept which needs to be accepted throughout the organization and key to the future financial success.

In the last couple of decades with the advent of information technology and internet, the customer power is ever increasing and there is more transparency. Customers do not just want mass produced goods, but they want manufacturers to provide value which makes them delightful and happy.

Customer satisfaction is beginning of relationship and future collaboration.

New Technology and Relationship Marketing

Innovation and technology are ever evolving. The concept of search engine optimization is the key to organization in the age of the internet. Blogs, video clips, social networks, etc. play an increasing important role in relationship marketing. These mediums are interactive in nature and help companies maintain real time relationship with consumers.

Early adoption of new technology and associated capabilities is seen as crucial for organizations to succeed in an international business environment. Also advent of Web2.0 and its utilization would provide companies the competitive advantage in coming decades.

Web 2.0 refers to enhancing capabilities of the internet and its broader application in building customer relationships. The enhance capabilities of internet include Podcast, Webcast, Intranet and Microsites. A podcast is a digital video or audio available over the internet for download. Webcast refers to the usage of the internet to broadcast any specific type of messages. Intranet refers to the usage of internet within organization for information exchange. Microsite refers to smaller associated sites to supplement primary site.

Integrated Customer Approach

The field of information technology is going to be ever changing and will become more sophisticated. But the key focus will remain on the relationship component by utilizing consumer experiences and ideas. As the sophistication in product and services increase, the basis of differentiation will reduce, thus customer experience and relationship will drive the value of satisfaction.

With the increase of the interactive medium, more power will start flowing into consumer and they will exert more control in relationship with the organization. This will help companies read the market requirement well in advance.

Customer related innovation will be guided by interactive dialogue made possible by newer internet technologies. The increased transparency can benefit companies in many ways. The transparency can help companies identify consumers with whom they would like to make long term relationships and would be able to target them with precise and clear communication.

Trust is the key element of a continued and successful relationship. Generally, trust in companies is very difficult to develop and easy to dismantle. Also the customers like to be associated with companies they can identify with. The reference groups of fellow consumers also play important role in building trust element.

Reference groups are kind of forums where like-minded people come and share their opinion and experience with another. Many consumers are making their buying decision after approaching and reading through these reference groups.

Social networks also have been steadily increasing their clout over the internet. These social networks form ideal platform for companies to undertake advertising campaign and even direct sales.

Financial Implications

Every action taken by the company in creating and maintaining a relationship involves financial investment. Hence it becomes very crucial for companies to develop metrics which can help them track financial benefit for a given relationship. Companies are able to track their valued customers through closer relationship and developing better and effective techniques for retaining them.

Organization Structure

With so many changes happening on the technology front, it is important that companies are able organize themselves in the best suitable way. Organizations are beginning to understand that primary asset of an organization are its customers. This primary asset needs to be nurtured and developed in a way that helps organization survive this era of global competition.

Customer as Driving Force

The customers are going to be in the center of any strategy companies is going to develop. If a particular customer is currently generating lower margin, but has a great future potential than it makes more sense for the company to develop strategies around that customer. A customer who is currently at high margin and also has the potential of generating more margins would also be in focus for the organization. The customer with high margin, but lower future potential is an ideal candidate for re-engineering strategy to bring them back into higher margin. However the candidate with low margin and lower potential should be completed removed from company’s transaction.

Relationship marketing is serving as a paradigm shift for the all organization. It offers organization fullest potential to develop and prosper. As companies are able to deliver value and maintain healthy relationships with the consumer, their profitability is also increasing. Customer retention becomes easier and attracting a new customer is also more cost effective. This benefit of relationship marketing is not restricted to customer but also with supplier and all internal-external stakeholders.

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Relationship Marketing with Business Associates and Partners https://www.managementstudyguide.com/relationship-marketing-with-business-associates-partners.htm Wed, 12 Feb 2025 09:52:03 +0000 https://sigma.managementstudyguide.com/sigma/relationship-marketing-with-business-associates-partners.htm/ Business dynamics have forced the Organizations to recognize Customer as the most important factor responsible for its own existence and survival. Organizations have no option but to be customer centric.

When we say that Organizations have to be customer centric, we are not only referring to the marketing and sales tuning in with the end customer in the market, but to the Organization tuning in to listening to the customer, establishing a relationship with the customer.

When we talk about an Organization’s relationship with the customer, we are not only referring exclusively to the end consumer alone, but to the intermediate agencies that are involved in delivering the Company’s products and services to the end customer too. To the Organization these intermediaries are also its customers.

Depending upon the product, particular market and the business model, an Organization might be engaging with franchisees, Whole Dealers, Stockists, Booking agents, Warehousing partners, Distribution partners etc.

Normally it is understood that the relationship between the company and the channel is based on the commission, product volumes and the targets set for sales etc.

If you analyze the network you will find that there is a power play that operates between the Organization and the partner which needs to be managed by the Company by engaging the agency in an interactive relationship and working towards a win win approach.

Take the case of an Wholesale Dealer engaged with a Company. The whole sale dealer by virtue of his position does have the power to strengthen or weaken the sales of the Company in the particular segment or territory.

The wholesaler can influence the market sentiments to the existing products as well as any new products of the Company.

The wholesaler can effectively block or create roadblocks if the Company tries to engage in direct marketing or other alternative forms of selling in the same region.

The Company which is able to manage the relationship with the whole seller effectively is able to get the whole seller to be a partner in its business and not an outside agency.

Effective relationship management can yield in the whole seller representing and converting the market opinion on behalf of the company and boost the sales.

Effective market penetration, market reach and market cover can increase as the outcome of a positive relationship between the Whole seller and the Company. Such a situation calls for the Company to practice a healthy marketing strategy as well as Organizational business strategy outlining its attitude and relationship towards its business partners.

The Company’s attitude and commitment towards the relationship will determine the strength of the partnership and draw participation from the whole seller as well as other partners in the business cycle.

There is a clear cut differentiation between the Organizational policy and relationship management practice towards its partners to the business process requirements expected from the partners.

When the partners are engaged in a relationship, the business process requirements with reference to the business transactions are met with and honoured by both parties. A healthy relationship can effectively convert the Whole seller to be the spokes person of the Company in the market thus leading to opening of many more doors for the Company.

Realising the need for relationship building and seeing the value that can be released based on such a healthy relationship, Companies engage and focus on engaging with the business partners and associates on long term basis. Though marketing departments take the initiative to build such relationship, the management of the organizations as well as other functions like finance, service etc are also involved closely with the business partners talking one common language and following one set of corporate values that speaks for the Organization.

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Relationship Marketing Sells https://www.managementstudyguide.com/relationship-marketing-sells.htm Wed, 12 Feb 2025 09:52:03 +0000 https://sigma.managementstudyguide.com/sigma/relationship-marketing-sells.htm/ Marketing is a subject that draws a lot of students who find it most interesting and challenging. No doubt marketing is a challenge. Students who study Philip Kotler will definitely become proficient with the basic foundations of marketing and concepts. However to be able to take up a marketing responsibility in an Organisation or to go one step further in the profession, there is yet another essential subject that one needs to master which is Relationship Marketing.

For any Organisation and more so for the Marketing person the customer is God. Many academicians have begun to define Marketing as the art of ‘Creating And Sustaining Network of Relationships’. This is apt for the modern day marketing function. The beginning and end of selling has to do with establishing and managing a relationship with the customer. Besides the Customer, there are several networks within the Organisation as well as outside the Organisation in the form of Suppliers, Vendors, Sales partners, sales channels, whole sellers and so on.

Organisations will need to choose their marketing and sales strategy based on the kind of product and the market that they are in. Companies like Boeing, Volvo and Ericson etc, engage actively in relationship management with the prospective buyers who may be Government Organizations as well as Defence Organisations to market their products and solutions. You can call their sales persons as relationship managers rather than sales managers. They operate in markets were the lead time for selling is very long. The marketing team has got to build the right contacts, position themselves right and build the relationship with the prospecting customer organizations for a number of years with no active selling happening in the near future.

The pre selling process can take several years and the sales contracts can be long drawn spreading over a number of years. Whether Boeing is selling planes to a country or Volvo is selling vehicles to Government and Defence sector is not a onetime transaction. Post sales service and maintenance also plays an important role to ensure future business. When in case of sales to Defence as well as Governments in international markets calls for dedicated and intelligent management of relationship at various levels involving political as well as other considerations.

The industry leaders form associations and groups with similar business interests and engage the Political leadership in helping open doors in international markets with other countries. When the President of a country travels to another country, the visit brings about opportunities for several business relationships including bi lateral trade relationships. The individual countries embassies as well as trade councils often engage in exchange of and trade promotions with other countries where the Governments of both countries are engaged in a favourable relationship.

A Marketing professional needs to recognise that he needs to first create a base and build a relationship with his markets and customer. It is the ongoing relationship that will open doors to and lead to opportunities for business. The more one invests in building the relationship with the proposed and existing customer, the more one gets to engage in business. Relationships build bridges and help prepare ground for long term associations. When in a relationship, Selling happens automatically.

If you look at a typical product selling environment where one is selling through an established channel, you can see the value of relationships in the existing sales cycle. It is the strength of the relationship that will determine how well the product is pushed in the market, how the retailer takes interest in selling the product and building the brand etc. It is based on the strength of the network and the relationship with the dealers and retailers that the marketing and sales managers are able to expand their markets.

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Relationship Marketing in Practice https://www.managementstudyguide.com/relationship-marketing-in-practice.htm Wed, 12 Feb 2025 09:52:03 +0000 https://sigma.managementstudyguide.com/sigma/relationship-marketing-in-practice.htm/ There is a realisation and understanding that Customer Retention is beneficial and rewarding than the efforts required in finding a new customer. Marketing managers can be successful only when they know how to build an interactive ongoing interaction with their customers.

The scenarios of being in tune with the customer varies from business to business. In a B to C scenario, you may need to ensure that you set up a customer service department that oversees as well facilitates the sales and after sales process as well as engages with the end customer.

In cases where an end consumer is concerned, the chances of customer not being happy with the service is more due to the intermediaries and third party service providers used in delivering service to the end customer.

In case of a bank, the delay in delivering a credit card to the customer by the courier company may hamper the relationship between the customer and the bank for the customer is likely to blame the bank and not the courier.

In another instance a customer who buys an AC may have a hard time dealing with an external service agency that calls on him for installation. He is likely to be furious with the Company in this case.

Therefore in B2C situations the Company would need to control and sensitize as well as manage the relationship with the service providers to be able to satisfy and engage in a healthy relationship with the end customer.

In case of B2B situation, the situation can be different. However it has to be understood by one and all in the Organization that it pays to understand and engage with the Business Customer’s end Customer.

An Organization supplying parts to a Car Company that manufactures cars and sells to the consumer should engage through the Car maker, with the Car owner to understand his requirements and reactions in detail.

If the component supplier does not engage directly with the customer and relies upon the feedback from the car maker, it is quite likely that the feedback is distorted and not adequate. In the long run such an attitude will not only help improve the quality of the car and build brand value, it helps increase the market as well.

Both the component supplier Organization as well as the Car marker gets to benefit from engaging in Relationship management with the end customer.

Take the case of retail supermarkets that stock and sell items from hundreds of manufacturers. You will see the manufacturers engaging with customers on the floor trying to understand and gather their feedback.

The manufacturers need to be able to focus on delivering goods to stock the super market in time. They have got to engage with the supermarket team to ensure that the items are received and sent to storage in time to be able to meet the customer demand. Besides they have got to engage with the end customer to get to know their experience with the product quality as well as the shopping experience.

The customer is likely to hold negative impressions about the product if his shopping experience has been bad. Vice versa he is likely to avoid the supermarket in the future if he does not find the right product he has been looking for.

Engaging in Relationship Marketing is not only about engaging in customer service or making the customer happy. It involves positioning the company’s focus on building and extending an interactive relationship with the intermediaries as well as the end customer and tuning in to the customer’s current as well as anticipated needs and behaviour.

A good Marketing Manager is he who is able to envision systems and processes to get closer to and build continuity with a customer by engaging with him in a long term relationship and in turn bring value to the Customer through his relationship with the Organization.

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Relationship Marketing – Background and Theory https://www.managementstudyguide.com/relationship-marketing-background-and-theory.htm Wed, 12 Feb 2025 09:52:03 +0000 https://sigma.managementstudyguide.com/sigma/relationship-marketing-background-and-theory.htm/ Introduction

The world of business has altered a great deal in the last few decades or so, globalization and information technology has produced a young breed of well-informed customers. And so the marketing theory has also undergone changes. Service based industry is now at the forefront in the economic evolution.

Therefore, to sustain a loyal customer base relationship marketing along with other marketing mix forms base of the new marketing world.

Today’s companies want to use relationship marketing to improve customer loyalty, and generate profits.

Scope and Definition

Marketing is defined as an organization function which creates set of process through which company creates, communicates, manages and delivers value to customers. The portion of customer management forms the foundation of the relationship marketing. Relationship marketing looks to utilize tools of traditional marketing in creating long term value for customers. Relationship marketing theory proposes that as company delivers value to customer, strength of its relationship with the customer will improve and increasing the customer retention.

Scope of Relationship marketing is as follows:

  • Relationship marketing looks at creating an approach and strategy that will generate customer retention. It makes a shift from traditional marketing which had a single sales strategy.
  • Relationship marketing treats sales as the beginning of relationship with the customer. The profit from this relationship is a measure of company’s success. Sale alone does not determine success of the company.
  • Relationship marketing looks to create a continuous relationship with the customer. This could be through proficient after sales service or providing add on features.
  • Relationship marketing talks about delivering value to the customer rather than highlighting the salient features of the product.
  • Relationship marketing believes the customer is the center of the business rather than its product and offerings.
  • Relationship marketing deals with customer by considering a long term perspective rather than a short term one.
  • Relationship marketing looks to deliver a robust customer service which includes pre-sales, sales and after sales activities.
  • Relationship marketing puts emphasis on understanding customer expectation. After understanding company shows high commitment in delivering to that expectation.
  • Relationship marketing is committed towards total quality management. This commitment towards quality is displayed at each level and across functions.
  • Relationship marketing believes pricing of product should not be determined by the competitive forces but through negotiation and consensus.
  • Relationship marketing encourages marketing campaign to focus on the target customer market, tailoring to the specific needs of the individual.
  • Relationship marketing prepares the company to launch products which serve problem solving capability addressing current as well as future needs.

Relationship marketing- A Collaborative Approach

From above it is clear that relationship marketing overlaps with other marketing strategies like service marketing, branding, channel marketing etc. However the differentiation comes in focus of other strategies for example service marketing focus is on intangible services, channel marketing looks at the interaction between channel partners. But relationship marketing looks at enhancing company performance by focusing on improving various relationships.

Relationship marketing’s focus is on improving relationships with supplier market, internal market, referral market, customer market and business market.

Internal markets: company’s culture, values and belief create the internal market. It includes people, process and groups.

Supplier Market: the various suppliers and vendor on which company is dependent to create its final product make up the supplier market.

Referral Market: Satisfied customer, professional advisors, etc. from the referral market. The satisfied customers are motivated bunch who through word of mouth promote the company.

Business Market: the external business environment forms business market for the company. They play a significant role in determining the success of the company.

Customer Market: this market consists of not only the end user, but also intermediaries who purchase products from the company.

The above mentioned markets form basis various relational exchanges around which relationship marketing is developed.

Conflict and Relationship Marketing

The existing and unresolved conflicts between the various markets and company play a pivotal role in determining long term success of the company. If any conflict remains unresolved it can lead to complete breakdown of commercial interactions between all market players. Therefore, it is necessary for the company to align its business process with relationship marketing strategy. The company has to create culture and formal systems where conflict customer issues are resolved.

A common understanding between all the players about their role and responsibility through relationship marketing helps in long term value for the customer.

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Relationship Marketing and CRM https://www.managementstudyguide.com/relationship-marketing-and-crm.htm Wed, 12 Feb 2025 09:52:03 +0000 https://sigma.managementstudyguide.com/sigma/relationship-marketing-and-crm.htm/ Relationship Marketing is being spoken of as one key Business Philosophies of the progressive Organizations who are Customer Oriented or Customer Centric. Companies have realized that to be successful on the long term trajectory of successful business, they need to be closer to the market, get under he skin of the Customer, anticipate his needs and engineer products and services to satisfy the customer and engage his loyalty.

As competition is increasing, product innovation is definitely one of the key important elements that the Organizations need to depend upon to steer themselves ahead in the market. Along with the technical leadership the companies necessarily need to know how to reach out to the Customer.

Engaging the Customer, Understanding the Customer and building relationship has become the need of the day.

No wonder that every individual today is bombarded with calls, emails, personal visits, mailers and all sorts of marketing communications from different companies trying to vie for your attention. From the Credit card Company, bankers to the shopping mall as well as the local restaurant you frequent try to engage you into a relationship that goes beyond a single transaction.

One of the outcomes of the evolution of Relationship Marketing has been the birth of CRM solutions. Besides CRM we have also seen the birth of new departments and disciplines in Organizations namely Customer Service Department as well as Key Account Management. It is very easy for students to equate RM with CRM and that both are one and the same.

Relationship Management forms part of the vision and business ethics that the Company envisages to imbibe as its core value system. When an Organization chooses to build its business blocks around Relationship Management, the Organization is marrying its Profit Making goal with Customer Relationship to build a synergy by which all the divisions as well as the functions of the Organization look at their function and business through the RM lens. This helps build a strong customer orientation and culture of Customer Sensitivity across the Organization at all levels, branches and functions. In any Organization several of its departments are involved with the external customers. Starting with Marketing, Sales, Distribution to After Sales Service, Quality as well as Finance Departments are involved with Customers and their orientation towards the Customer interaction is fashioned by the RM outlook of the Organization.

CRM on the other hand can best be described as an enabler of RM in any Organization. CRM involves process including software and hardware components that automates and helps manage customer engagement. While RM works at a strategy level, CRM helps implement the Strategy. The success of CRM as a concept is widely seen due to the aggressive marketing of CRM solutions by the IT companies who have developed the CRM packages. This has helped the Multi National Organizations to implement standardized process of Customer management on large scale across geographies and markets.

Besides Software driven Packages, there are several services and schemes that are available locally that are tailor made to suit particular industry. In a market place where every company is vying for space in the minds of the customer what helps the company gain that customer loyalty is the RM outlook that comes across via the CRM channel.

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Relationship Management is not a Marketing Strategy Alone https://www.managementstudyguide.com/relationship-management-marketing-strategy.htm Wed, 12 Feb 2025 09:52:03 +0000 https://sigma.managementstudyguide.com/sigma/relationship-management-marketing-strategy.htm/ Customer Relationship management is a two way interaction. The Organisation has got to devise ways and means to reach out to the customer and more importantly receive the feedback received from the customer.

There are two important aspects to be considered in a Customer Relationship Management. First is the customer interaction in terms of quality of communication as well as service delivery.

It is important to ensure that the Customer is happy with his interaction with the representatives of the Company. Secondly the process followed or the delivery of information and communication too has an impact on the Customer relationship.

In a B2B as well as B2C business scenarios, it is not only the sales person that comes in touch with the Customer.

Customers may interact with employees of different functions coming from the same Organisation. There can be persons from technical services, supply chain or finance department executives who happen to interact with the customer at various times.

Each of these interactions by different functions is looked upon as coming from the Organisation and the Customer automatically builds his mental image and impressions about the Company and product largely by the quality of such interactions.

Therefore it is important for the Marketing Managers to recognise that Customer Relationship Management is not marketing or customer services function alone. It is important for the Customer Relationship agenda to be owned by the Business Organisation as a whole. When it comes to implementing Relationship Management strategy the Management needs to drive the Relationship Management philosophy through HR function too.

Relationship Management

When an Organisation chooses to be customer centric, it needs to have its eyes and ears open to learning from and all about the Customer on an ongoing basis.

RM implantation strategy thereby needs to involve building a Customer friendly culture within the Organisation across all functions especially where the employees get to interact with the Customer.

Secondly it needs to build a culture where the information is gathered from the markets, received and managed by the Organisation.

The starting point of sensitizing the employees to Managing Customer Relationship begins with HR function. Hiring the right workforce with the required attitude is very important. Secondly orienting employees to the Organisational culture and values of treating Customer as the king is imperative.

Going further the HR as well as Marketing functions would need to train and sensitize all the employees that are involved in interaction with the Customers in caring for the customer as well as to be able to learn from the Customer.

Many Business Organisations have developed the strategy of matching the employee profile to that of the specific Customer needs.

In case of major and key customers, many Organizations are known to select and offer the prospective employees for Customer approval to enhance the value of the relationship and operational effectiveness. Matching the customer expectation then becomes the first step towards building and extending relationships.

Thus we see a role for HR and training in the Marketing Strategy implementation and Customer Relationship Management. In the modern day business organisations, all the functions are required to contribute to and be a part of the business and contribute to the business growth.

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Relationship Management and Green Marketing https://www.managementstudyguide.com/relationship-management-green-marketing.htm Wed, 12 Feb 2025 09:52:03 +0000 https://sigma.managementstudyguide.com/sigma/relationship-management-green-marketing.htm/ The world attention once again has turned to Durban where the countries are meeting to try and resolve the crises that our World is facing today in terms of Global warming and Energy crisis. Environmental protection as well as Prevention of cruelty to Animals too have been global agendas making news all the time. Though you get to read about these environmental issues as well as Global energy crises and climatic changes in paper or via the visual medium, you may not give it any attention for you believe that your job or profession has nothing to do with it. This is the perception amongst common people. However in reality these global issues are debated by the countries in such forums and agreements are reached where in the countries agree to take remedial measures to bring down global warming.

The implementation of the measures begins with passing laws, guidelines and policies that help the industries to reduce their carbon footprint and own up the targets. All the industries then need to adhere to the regulations and adapt environmental friendly technologies. Thus the global issues do affect all the industries and business organisations.

Environmental and global issues concerning nature and animals being highly sensitive subjects, do manage to get public attention for everyone is concerned about the future of the planet. Companies who have adapted policies to participate in the process of reduction of waste and pollutants as well as reducing carbon footprint have realised the benefit of talking about their green initiatives. They have begun to associate their support with social causes as well as environmental issues too and use it to build a relationship with the customers who are interested in such issues.

When you walk into a boutique hotel or a resort you will see detailed instructions on how you can help conserve water resources through following the guidelines and reducing the need for washing the towels on daily basis. You also get to see the ways in which the hotel is implementing various projects to save on precious resources. Some hotels use recycled and handmade paper and promote use of decorative materials made using natural fibres and fabric etc. Some hotels use natural dye for their walls and promote handmade crockery etc. Through such initiatives they are trying to give a message as well as create an interactive platform for building a relationship with the customers. Those who appreciate such initiatives are likely to become loyal customers and help refer the hotel to their friends and acquaintances too.

Very often we come across sales campaigns by leading consumer durables and consumer product companies who pledge to support a particular humanitarian cause or a project related to a social issue or a conservation project. The advertisements urge you to shop with them so that a part of the sales proceeds are donated to support the cause. Again through such interactive methods there is a relationship that is built with the Customer who identifies the Company with the cause that is close to his heart.

Take the case of Body shop. The Company uses natural products for manufacturing the products and do not use the animals for testing the products. The Company has defined this fact in its vision statement and has succeeded in striking an emotional chord with the consumers who care for animals.

As such there is a huge scope for the businesses to associate their social responsibility as well as the green initiatives that the Company adapts with their public image and use these as effective tools to reach out to the customers and manage the relationship with the customer effectively.

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