a) Define Customer Relationship Management (CRM) & its purpose? (2+3)
Customer Relationship Management
“The ability of an entire organization to effectively identify, acquires, foster and retain loyal profitable customers.”
Customer Relationship Management (CRM) boiling down to one simple concept: loyal, profitable customers. Loyal because we know that longtime customers tend to buy more and are easier, and subsequently more cost effective, to sell new products to than trying to acquire new customers
Profitable because this is what makes or breaks us as a business.
Purpose of CRM
The purpose of CRM is improved proximity to clients to respond to their needs and turn them into loyal customers. A CRM project therefore includes providing each sector of the company with access to the information system to get to know the client better and provide him with products and services which meet his expectations in the best possible way.
b) Elaborate your answer with the help of example? (5)
The organization and the customers both have sets of conditions to consider when building the relationship, such as wants and needs of both parties;
• organizations need to make a profit to survive and grow
• customers want good service, a quality product and an acceptable price
Mortgage brokers have a special type of business, a business that needs specific CRM software capabilities. One of the major parts of mortgage broking is client relationships. Not only does the client need to feel confident in your abilities as a broker, but it's also important for your business that the client enjoys the experience so that they will refer you future business.
c) Why CRM is different from traditional marketing? (5)
From the marketing perspective, traditional marketing builds category need, awareness of the product (through recall & recognition), a positive attitude (through developing knowledge of the product & liking it) and intention to buy (through consideration of the product and preferring it). Hopefully, a sale occurs at this point. Relationship marketing takes over after the sale for existing customers by stimulating the intention to buy and sometimes after the sale through post-purchase reinforcement. In other words, you should use traditional marketing to recruit new customers and relationship marketing to maintain the relationship with them once you brought them in.