1.How is Customer Relationship Management (CRM) different from Relationship Mark
ID: 356096 • Letter: 1
Question
1.How is Customer Relationship Management (CRM) different from Relationship Marketing and Customer Information Management? Why is CRM more than just implementation of technology?
2.What are the different components of CRM? In what ways do these components impact on the overall process of managing customer relationships? Provide some examples to illustrate your answers?
3.Briefly describe the various theories that explain bi-lateral relationships. How does an understanding of the basis for relationships help a manager to effectively manage customer relationships? Explain using a couple of examples?
4. What role does trust play in relationships between customers and organisations? Briefly explain the components of trust and how they may apply to your relationship with your preferred hairdresser or salon?
5. Briefly explain the various theories that explain multi-lateral relationships relevant to organisations? Are these broader multi-lateral relationship theories consistent at all with bilateral relationship theories studied previously? Explain?
Explanation / Answer
Answering the first question as per Chegg Policy
Customer Information management: It is the system of managing the data of various customers in a company. It is a subset of a wider term called data management. The various particulars & details of the customer are handled by different verticals of a system with an efficient technology infrastructure in order to create a robust customer information system. The data is saved on the cloud server and can be accessed as and when required to generate strategic knowledge about customers.
Relationship Marketing: It is a part of Customer relationship management which focuses on long-term engagement with the customer and creating a higher level of customer loyalty through assured quality of service delivery. It does not follow a short-term goal approach. This approach primarily focuses on customer retention and satisfaction. With the expansion of technology and its reach to customers globally, the relationship marketing has evolved to more collaborative and communicating channels. Today, the customers are available on the speed to blink of an eye through channels like email, Facebook, WhatsApp, chats. They can be reached in no time and can be catered with services & solutions to problems in no time. This gives rise to increased reach of companies in customer’s arena and can be utilized for achieving higher levels of customer satisfaction.
Customer Relationship management: It is basically an approach of the company to interact and communicate with present and past customers. It is a broader term which is an umbrella term for relationship marketing as well as customer information management. This system is widely used to retrieve critical knowledge from the database of customer details. For example, a customer’s purchase behavior can be judged and acted upon by the pattern of his purchases done throughout the year. The CRM is an efficient approach used by many companies globally in order to maintain good relationships and create a lasting relationship with their customers. It can be of various types – Strategic (creating customer-centric product and services), Operational (consolidate sales, support, marketing and logistics), Analytical (analyzing customer’s preferences and trends to recreate the process and products), Collaborative (collaboration of vendors, distributors with customer information to create better system) and Customer Data based (one database for all customer details). CRM is a master term for managing a relationship with the customer.
Why is CRM more than just implementation of technology?
CRM is an amalgamation of the customer database, human resources, and skills across the teams, tools of data analysis to gain customer insights and systems to create the customer-centric product (& services) in order to create lasting customer engagement with the company. It uses but not is limited to use of technology to improve company’s efforts to match up with customer’s needs. Apart from technology, it also uses human skills and training to manage the relationship with the customer as many times the end user of a product or service interacts with the human node of the company.
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