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Unit 14 Customer Relationship Management
and Other Contemporary Issues
Structure:
14.1 Introduction
Learning Objectives
14.2 Relationship Marketing vs. Relationship Management
14.3 Definitions of Customer Relationship Management (CRM)
14.4 Forms of Relationship Management
14.5 Managing Customer Loyalty and Development
14.6 Reasons behind Losing Customers by Organizations
14.7 Significance of Customer Relationship Management
14.8 Social Actions Affecting Buyer-Seller Relationships
14.9 Rural marketing
14.10 Services marketing
14.11 E-marketing or online marketing
14.12 Summary
14.13 Terminal Questions
14.14 Answers
14.1 Introduction
In the marketing world managers quite often say „retaining customer is more
important than acquiring one‟. We will examine the importance of this
statement. The organization uses communications tools to make its product
and brand aware among the consumer. It uses its supply chains and human
resources to sell their products. Each stage costs for the company. In this
competitive world, organizations want to reduce the cost and develop the
database which helps in creating loyalty programs. Therefore it is very
essential for the organizations to use software to pile up a big database of
customers. Many Indian companies like Infosys, Wipro and others started
offering CRM software to companies. The benefits of CRM software are
quicker, better quality and timely services to the customers. This increases
the word of mouth communications and reduces the cost of mass media.
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Learning Objectives
After studying this unit, you will be able to
Explain the meaning, need and relevance of CRM.
Mention the forms of relationship management.
Cite reasons for losing customers by organizations.
Bring out the significance of customer relationship management.
Ascertain the latest and recent developments in Marketing Management
14.2 Relationship Marketing Vs. Relationship Management
The relationship marketing approach considers customers as insiders to the
business and aims at building a long term and never-ending relationship
with them. The focus of relationship marketing approach centers on
developing „hard core loyal‟ customers with the idea of retaining them
forever. A high degree of customers‟ contact, commitment and services are
maintained.
The relationship marketing approach has gradually taken the shape of
customer relationship management. Relationship marketing has a narrow
focus on the customers and focuses only on the marketing function of the
organization concerned. On the other hand, customer relationship
management focuses more widely on customers and on the entire functions
connected with value creation and delivery chain of the organization
concerned. The customer relationship management is a process of
acquiring customers by understanding their requirements, retaining
customers by fulfilling their requirements more than their expectations and
attracting new customers through customer specific strategic marketing
approaches. The process invites total commitment on the part of entire
organization in evolving and implementing relationship strategies that would
be rewarding to all concerned.
Organizations have preferred the usage of the term „Customer Relationship
Management‟ rather than „Customer Relationship Marketing‟. However, in
practice, both these terms are used interchangeably.
14.3 Definitions of Customer Relationship Management
Berry defines CRM as “attracting, maintaining and – in multi-service
organizations – enhancing customer relationships.”
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Berry and Parasuraman define CRM as “attracting, developing and retaining
customer relationships.”
In Industrial Marketing, Jackson defines CRM as “marketing oriented toward
strong, lasting relationships with individual accounts.”
Doyle and Roth define CRMS as “the goal of relationship selling is to earn
the position of preferred supplier by developing trust in key accounts over a
period of time.”
The sequence of activities for performing relationship marketing would
include developing core services to build customer relationship,
customization of relationship, augmenting core services with extra benefits,
and enhancing customer loyalty and fine-tuning internal marketing to
promote external marketing success.
Christopher considers relationship marketing as “a tool to turn current and
new customers into regularly purchasing clients and then progressively
moving them through being strong supporters of the company and its
products to finally being active and vocal advocates for the company.”
Relationship marketing is in essence “selling by using psychological rather
than economic inducements to attract and retain customers. It seeks to
personalize and appeal to the hearts, minds and purses of the mass
consumers.”- James J. Lynch
Thus, “Customer Relationship Management is about acquiring, developing
and retaining satisfied loyal customers; achieving profitable growth, and
creating economic value in company‟s brand,”
From the above definitions, it could be concluded that Customer
Relationship Management refers to all marketing activities directed towards
establishing, developing, and sustaining long lasting, trusting, win-win,
beneficial and successful relational exchanges between the focal firm and
all its supporting key stakeholders.
CRM is not a new concept but an age-old practice, which is on the rise
because of the benefits it offers, especially in the present marketing
scenario. So, CRM today is a discipline as well as a set of discrete software
and technology which focuses on automating and improving the business
process associated with managing customer relationships in the area of
sales, marketing, customer service and support. CRM helps companies
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understand, establish and nurture long-term relationships with clients as well
as in retaining current customers. The most important step that an
organization has to take in the direction of CRM is to create an
interdisciplinary team to review how the organization interacts with each
customer and determine how to improve and extend the relationship.
14.4 Forms of Relationship Management
An extensive review of literature reveals ten different but interrelated forms
of relationship marketing as mentioned below:
1. The partnering involved in relational exchanges between
manufacturers and their external goods suppliers.
2. Relational exchanges involving service providers, as between
advertising or marketing research agencies and their respective
clients.
3. Strategic alliances between firms and their competitors, as in
technology alliances; co-marketing alliances and global strategic
alliances.
4. Alliances between a firm and non-profit organizations, as in public-
purpose partnerships.
5. Partnerships for joint research and development, as between firms and
local, state, or national governments.
6. Long-term exchanges between firms and ultimate customers, as
particularly recommended in the services marketing area.
7. Relational exchanges of working partnerships as in channels of
distribution.
8. Exchanges involving functional departments within a firm.
9. Exchanges between a firm and its employees, as in internal marketing.
10. Within firm, relational exchanges involving such business units as
subsidiaries, divisions or strategic business units.
These different forms of relationship marketing both jointly and severally
influence the emergence and growth of enduring long-term dyadic, triadic
network, and web of relationships between the focal firm and its supporting
key stakeholders.
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14.5 Managing Customer Loyalty and Development
Managing customer-development process is one of the critical dimensions
of relationship marketing. Basically it involves a twin focus - customer
catching, and customer keeping. „Customer catching‟ is the process of
attracting new customers (inviting new blood), while the customer keeping
aims at the process of retaining the existing ones (encouraging old blood).
Customer – Development Process:
To understand customer relationship management, we must first examine
the process involved in attracting and keeping the customers. The starting
point is suspects. Suspect is everyone who might conceivably buy the
product or service. The company looks hard at the suspects to determine
who the most likely prospects are. The prospects are those people who
have a strong potential interest in the product and the ability to pay for it.
Disqualified prospects are those whom the company rejects because they
have poor credit or would be unprofitable. The company hopes to convert
many of its qualified prospects into first- time customers, and to then convert
those satisfied first-time customers into repeat customers. Both first-time
and repeat customers may continue to buy from competitors as well. The
company then acts to convert repeat customers into clients. Clients are
those people who buy only from the company in the relevant product
categories. The next challenge is to turn the clients into advocates.
Suspect
Prospects
First time
customer
Repeat
customer Clients Member Advocat
e
Partner
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Advocates are those people who praise the company and encourage others
who buy from it. Ultimate challenge is to turn advocates into partners, where
the customer and the company work actively together. At the same time, it
must be recognized that some customers will inevitably become inactive or
drop out for various reasons causing relationships to dissolve. The
company‟s challenge is to reactivate the dissatisfied customers through
customer win-back strategies. It is often easier to re-attract ex-customers
than to find new ones. Unfortunately, the traditional marketing approach with
its emphasis on making sales rather than building relationships fails to
achieve this.
Self Assessment Questions
1. _________is the process of attracting new customers, while
______________aims at the process of retaining the existing ones.
2. CRM involves using set of discrete software and technology which
focuses on automating and improving the business process.
a) True b) False
3. ___________are those people who have a strong potential interest in
the product and the ability to pay for it.
4. ___________are those people who buy only from the company in the
relevant product categories.
5. ___________are those people who praise the company and encourage
others who buy from it.
14.6 Reasons behind Losing Customers by Organizations
It is said that cost of attracting a new customer is estimated to be five times
the cost of keeping a current customer happy. It requires a great deal of
effort to induce satisfied customers to switch away from their current
suppliers. Unfortunately, most marketing theory and practice center on the
art of attracting new customers rather than retaining existing ones. The
emphasis traditionally has been on making sales rather than building
relationships. The focus has been on pre-selling and selling rather than on
caring for the customer afterwards. Today, however, more companies are
recognizing the importance of satisfying and retaining the current
customers.
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Today’s companies must pay closer attention to their defection rate
and take steps to reduce it. The possible reasons for customer
defection would include:
14.6.1 Price related reasons: A customer tries to match the price to pay
for acquiring a brand and the value the brand could generate. If the
customer perceives a mismatch between the price and the value, he/she
would opt for a competitor‟s brand. Also, if the price of brand for any reason
goes beyond his/her reach, he/she would switch over to a low priced brand.
Thus, the role of price in customer retention is very significant.
14.6.2 Product related reasons: In view of technological advancement, the
new brand which makes market entry would be capable of offering better
performance as compared to the already existing brand. This would induce
the customers to make a brand switch over.
14.6.3 Services related reasons: The customer‟s concentration is not only
on the brand, but also on the accompanying services offered at three
different stages – pre-sales, during sales and after sales. Any dissatisfaction
as regards to services would cause the customer to move away from the
brand.
14.6.4 Benefit related reasons: The customers may be attracted by
various augmented benefits offered by the competitors. Such benefits may
be more appealing and induce customers towards brand changes.
14.6.5 Competitor related reasons: Technological advancement, attractive
offers, value added services, etc., offered by competitors would also draw
the attention and induce customers towards brand switching.
14.6.6 Personal reasons: On the personal front, a customer would become
a brand defector due to the following reasons:
Moved away from the market area where the brand is sold.
Role changes in life cycle and consequently leading changes in brand
preference.
Anger, disgust, distress developed within the process of product delivery.
Sentimental reasons.
Influence of other members of the family.
The organization must periodically analyze the reasons behind losing
customers and accordingly develop a customer retention plan that would
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serve as the basic tool towards building a strong and long lasting
relationship with customers.
Exhibit 1
Improving Customer Relationship
You cannot go about improving customer relationship for the short term
and succeed. It is a continuous process and involves follow ups right
from the time they make their first purchases for you. Primarily, customer
service is something that many business owners think later and
concentrate more on the marketing part. Instead of devising strategies to
retain customers they are more concerned about getting new customers
on board.
If you lose your existing customers due to lack of a proper planning about
servicing them and supporting their needs after they buy products and
services from you, you would be failing in the primary rules of CRM or
customer relations management. Your existing customers matter more as
they have already bought from you and expect hands-on support and
service. They would be the ones who would come once again to buy from
you if they are satisfied. It is far cheaper making them stick around with
you rather than spend money on ads and promos trying to attract new
customers.
In tough economic times it is the old customers that are going to come
back to you if you can maintain a level of satisfactory service and do
everything possible to improve customer relationship. It doesn't take
much to please your existing customers if you have a trained sales
service and support team. If you can look after your experienced staff
well, they would go all out to keep the customers happy.
Having been with you for long, they develop a relationship with their
workplace and have a direct stake in the future of the company. They
know much more than others about the need to keep customers happy
and contented after buying your product or service. They can also train
up and be hands-on guides to the new members of the sales staff and
egg them along.
If you maintain a regular database about customers since the time of
their first purchase, you would have all the necessary information at
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hand. You would know the demographics, their interests, hobbies and the
type of occupation they are engaged in. Their special days and events
they cherish would also be known to you and you can always send a card
or small gift.
These small gestures may appear very simple and minor, but can go a
long way in cementing your relationship with your customer. People
always love when they are wished unexpectedly and feted for
achievements and you go several notches up in the eyes of your
customers.
For improving customer relationship, you can form small groups of loyal
customers and hold informal meetings to get to know more about them. It
would be the right place to get feedbacks about your products and
services. The more you can make them talk and express their opinions,
the more likely it would be for you to sense their attitudes and
preferences. You can easily tailor your product and service accordingly
for improving customer relationship more.
Article Source:
http://www.bestmanagementarticles.com
http://customer-relationship-mgt.bestmanagementarticles.com
Author:
Jeff D McQueen
14.7 Significance of Customer Relationship Management
Reduction in customer recruitment cost.
Generation of more loyal customers.
Expansion of customer base.
Reduction in advertisement and other sales promotion expenses.
Increase in the number of profitable customers.
Easy introduction of new products.
Easy business expansion possibilities.
Increase in customer partnering.
The customers are also benefited by relationship marketing in terms of
improved service quality, personalized care, reduction of customer stress,
increased value for money, customer empowerment, etc.
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In today‟s highly competitive business world, CRM is becoming the ultimate
solution for both customers as well as organizations. Any organization must
have a clear idea as to why it loses its customers. This would help informing
proactive and reactive measures to minimize or avoid the same. This
chapter mainly focuses on the causes responsible for losing customers and
deals at length with the various strategies that can be employed to build and
maintain long term relationship with customers, enabling a reader to
consolidate relevant strategies suitable to his business context.
Traditional Organizational Chart Vs Modern Customer – Oriented Company
Organization Chart
Many managers who believe that the customer is the key to profitability
considered the traditional organization chart as in fig. (a) – a pyramid with
the president at the top, management in the middle, and front-line people
(sales and service people, telephone operators, receptionists) and
customers at the bottom – to be obsolete. Master marketing companies
know better; they invert the chart, as shown in fig. (b) above. At the top of
the organization are the customers. Next in importance are the front-line
people who meet, serve, and satisfy the customers. Under them are the
middle managers, whose job is to support the front-line people so they can
serve the customers well. Finally, at the base is top management whose job
is to support the middle managers. We have added customers along the
sides of Fig. (b) to indicate that all the company‟s managers are personally
involved in knowing, meeting, and serving customers.
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Broadening the concept of Relationship Marketing Companies should
realize that there are multiple constituencies important to organizational
success other than customers. The stakeholders of an organization would
include: investors, the financial community, vendors and suppliers,
employees, competitors, the media, neighbors and community leaders,
special interest groups, and government agencies. These stakeholders can
affect and be affected by a company‟s marketing programme. Adopting an
integrated view of multiple constituencies has bottom-line implications.
Kotler and Heskett (1992) found that firms that emphasized the interests of
three constituencies--customers, employees and stakeholders
outperformed those that emphasized only one or two.
Figure14.1: Showing Integrated View of Multiple Corporate Constituencies
Integration of Soft and Hard Versions of Relationship Marketing
At this juncture, it is necessary to clarify and elaborate the „soft‟ and „hard‟
versions of relationship marketing. Soft version of relationship marketing is
more reminiscent of „humanistic relationship development‟, whereas the
hard version reflects a „utilitarian instrumentalism‟. The soft version lays
FOCAL FIRM
Employees External goods suppliers
Investors and
Financial
Community
Ultimate Customers
Service provider (ad and marketing research agencies
Functional departments (interfunctional co-
ordination among production, finance,
marketing, R & D, HRM)
Channel of distribution
(distribution and dealers)
Subsidiaries, divisions,
Strategic business units (SBU’s)
Completions (strategic aliances: technology,
co-marketing and global)
Neighbours and Community
leaders
Government agencies
Government-local State, and central
(joint R & D projects)
Special interest Groups in the
society
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stress on the term „relationship‟, thus conjuring up echoes of the relationship
management, because it strongly advocates that all management is
basically relationship management and all managers are relationship
managers. It invariably focuses on „developmental humanism‟ as a
foundation to build and nurture enduring relationships in marketing
exchanges. On the other hand, the hard version puts the stress on the idea
of „marketing‟, that is something to be used dispassionately and in a formally
rational manner.
14.8 Social Actions Affecting Buyer-Seller Relationships
Good Things Bad Things
Initiate positive phone calls. Make only callbacks.
Make recommendations. Make justifications.
Candor in language. Accommodative language.
Use “we” problem-solving language. Use “owe-us” legal language.
Get to problems. Only respond to problems.
Use jargon or shorthand. Use long-winded communications.
Accept responsibility. Shift blame.
Plan the future. Rehash the past.
Source: Theodore Levitt, The Marketing Imagination (New York: Free Press, 1983)
p. 119. Reprinted by permission of the Harvard Business Review. An exhibit from
Theodore Levitt, “After the Sale is Over”, Harvard Business Review (September-
October 1983, p. 119). Copyright @ 1983 by the President and Fellows of Harvard
College.
14.9 Rural Marketing
In a rapidly changing scenario, marketers have to continuously explore new
markets and ways of serving them. In India, enterprises are discovering the
potential of a huge rural population to drive business. Prof C K Prahlad, had
aptly summed up the potential as „fortune at the bottom of the pyramid‟ in a
pathbraking book of the same name. Rural marketing is not something akin
to glocalisation. It is not the modification of urban marketing strategies to
suit the rural market. On the other hand it is developing products to meet the
needs of the rural sector and reaching it across as per the specific
characteristics of the rural environment. In case of a detergent, it is
producing one which will suit the rural environment (considering that the dirt
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and grime is different, clothing alternatives are different, availability of water
and number of times of washing is different and so on); packaging and
pricing which will be akin to their requirement and alternative ways for which
the detergent may be put to use. For example Hindustan Lever found that its
detergent was being used for washing the cattle.
14.9.1 Why is the rural market so important today?
The following table will give you some idea about the emergence of the rural
market which marketers may ignore at their own peril.
14.9.2 Why is rural marketing different?
This has to be understood in the light of the 4Ps or 7Ps of marketing.
Imagine that you are trying to establish a Coffee Café Day Outlet in a
remote village in Maharashtra. Will that be viable proposition? Yet there may
be consumers for coffee in the rural sector too. The offering has to suit the
sector. Similarly an ice cream parlor may not be a workable idea in a village
or a cluster of villages if there is no electricity connection there. The ice
cream cart vendor is a better idea. Keeping these situations in perspective,
one can draw some inferences why rural marketing is different.
1. Accessibility and mobility: This applies both for the supplier and the
consumer. The movement of the people is restricted by the lack of
surface roads and the mode of transport. There are restrictions by way
of visibility during night.
2. Average income level of consumers: The average wage earners are
characterized by lower per capita income and disposable income in
comparison to the urban.
3. Geographical distances: The living quarters are separated more than
they are in the urban areas. The cluster of villages is also segregated by
distances.
4. Literacy level: On an average the literacy level in the rural sector is lower
in comparison to the urban sector.
There could be several other issues which are specific to the rural sector.
These may force marketers to take a different approach for the entire
marketing process or at least some of them as against the urban sector.
14.10 Services Marketing
You would have come across the term „services‟ several times during the
course of going through this and other self learning material. You may also
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be familiar with the meaning. Till late „the services‟ were generally taken for
granted. Over the last decade or so it assumed importance to be treated as
a field of study as distinct from products. Although a service will have a
product component during the process of service delivery, the service itself
can have a different strategic orientation.
The configuration of the Ps and their strategic implication would be quite
different from those for products. For example a doctor would charge
different fees for the same treatment for different patients. This may not
happen in case of institutionalized health care service providers like
Wockhardt, Apollo etc. Logistics also may take a back seat except for the
courier or similar services. As a service is consumed the instant it is offered,
the offering is to be followed by a pre-offer and post -offer ambience. For
example in a hospital, the environment and facilities before a patient gets
treated is highly important. Once the patient gets treated the actual service
has been consumed. Post the treatment the billing and reports assume
importance. This is contrary to a product offer where the product is most
important, to provide the satisfaction or delight. In the light of these
examples you may be able to appreciate the fact that „services marketing‟
and „services management have become a specialized branch of study.
Exhibit 2
Kerala Tourism and Internet
“Kerala is sitting on a gold mine of tourism opportunities and so far
only the big names have exploited that potential. The internet is now
facilitating smaller constituents in the state’s tourism spectrum to
tap into the global markets at affordable costs” – Narasimha
Jayakumar, Business Head, Google India
Kerala Tourism is already among the leading search words on the
internet, and that web presence is being extended with the state tourism
board, becoming the first among its peers in the country to have a
campaign in association with Google. Mr. Jayakumar also said the pilot
project for the promotion of the state tourism brand had already been
successfully completed by Google and that Kerala tourism was taking a
holistic approach to market itself in a manner the will benefit the state
economy in general.
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“The Kerala tourism campaign is not intended to benefit only the tourism
players, but even have a rub off on players like jewelery sellers or other
service providers,” Jayakumar said adding that it was the fist state
tourism brand to take such a leap into global marketing through geo-
targeting.
As part of the campaign, Kerala tourism will aim to promote itself in three
targeted markets – the UK, the US and Canada.
Kerala Tourism director M. Shivshankar said the move for the global
campaign on the net was a logical one, considering that awareness was
already high about the brand. “We don‟t need to tell anyone what Kerala
tourism is about. With such a high awareness level about the brand, we
thought the time was ripe to move in for marketing the brand directly,” he
said.
Shivshankar said Kerala tourism had already been spending roughly 10%
of its annual promotional budget of about Rs.15 crore on new media, and
that this was a conscious decision to use a good chunk of the new media
budget on search-engine based advertising.
The campaign, with an outlay of Rs.95 lakhs, will roll out from the first
week of December, ahead of which the industry partners are being given
an induction into the world of net marketing. Tourism sector players,
particularly the small and medium operators, are being given a training
programme here to upgrade their net marketing skills.
Jayakumar pointed out hotel searches on the new were rising at a
compounded annual growth rate of 55% in India from 2007 and railway
searches were growing at a more robust 92% per annum. He further
added that the travel vertical dominated the search business on the net,
accounting for well over 90% of the e-com business.
(Source: The Economic Times 25th November 2009)
14.11 E-Marketing or Online Marketing
You may be familiar with „Amazon.com‟, „Timesmusic.com‟ and „e-Bay‟. By
visiting these websites you may be able to purchase products and pay
through your debit and credit card. Today you can virtually conduct your
entire shopping online and the products will be delivered to you at your
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home. Similarly, you can book your air, bus or rail ticket as per your desire.
Are these merely facilitating availability through the internet medium or are
there marketing elements embedded into these.
If you try to understand a little closely, you will find that these sites have
altered the way we make our buying decisions. The mere fact that these
sites are able to offer a far wider variety from across the globe, at highly
competitive prices, are indications of the differences that e-marketing could
bring to the field/function of marketing. At the same time it may not be able
to provide the same buying experience that physical presence can do.
The challenge for the marketer in this form of marketing lies in making it
comfortable for the customer to „browse‟ through the site and make a
purchase decision. It should be attractive enough for him to forego the
experience of physical shopping.
Exhibit 3
Online Shopping and Consumer confidence
The Visa e-Commerce Consumer Monitor conducted from April to June
2009 found that 33% of Indians are confident about using online modes
of payment. This is higher than the average for Asia-Pacific countries,
which stood at 29%.
However, 30% of the sample size who were not exposed to this mode
showed greater concern about the usage as compared to 16% of the
sample size in the Asia Pacific.
Indian respondents, as per the study, also reported to be more satisfied
with online shopping than other Asia Pacific consumers. Of these
participants, 57% of Indian shoppers shop at both local and overseas
websites. Only 5% of the consumers opt exclusively for overseas
websites, while only 38% stick to the local websites. 51% of the overseas
shoppers said that the main overseas online shopping destination for
them was US sites, while 12% shopped on Chinese websites to find
products that are not locally available. 17% of purchasers claimed that
discounts and inexpensive products were the primary attractions of online
shopping.
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The study highlights that 72% of Indians look for security in online
shopping; especially bank guarantee in transactions. Since the mandate
passed by the RBI on August 2009 for VISA verification of all online
transactions, this mode of payment has increased in popularity, VISA
country manager Uttam Nayak said. VISA plans to tie up with 40 Indian
banks to facilitate the process.
(Source: The Times of India 21st November 2009)
Self Assessment Questions
6. Soft version of relationship marketing is more reminiscent of
____________, whereas the hard version reflects a____________.
7. Service needs to be consumed as and when it is offered
a) True b) False
8. Kotler and Heskett found that firms that emphasized the interests of
three constituencies, namely _________________, employees, and
__________ outperformed those that emphasized only one or two.
9. Rural market is different and more challenging than the urban market.
a) True b) False
10. Online shopping or virtual shopping cannot replace the experience of
______________.
14.12 Summary
The focus of relationship marketing approach centers on developing
„hard core loyal‟ customers with the idea of retaining them forever.
The customer relationship management is a process of acquiring
customers by understanding their requirements, retaining customers by
fulfilling their requirements more than their expectations and attracting
new customers through customer specific strategic marketing
approaches.
Customer Relationship Management is about “ acquiring, developing
and retaining satisfied loyal customer; achieving profitable growth, and
creating economic value in company‟s brand,”
CRM is becoming the ultimate solution for both, customers as well as
organizations.
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The rural sector has opened up new possibilities for the marketers. Its
characteristics are quite different from that of the urban. Many
companies have adopted special rural focus in their marketing approach.
Services have now become a special business proposition and thus a
separate branch of study – Services Marketing. The pre and post
experience on a service offer are more important than the service itself.
With internet and broadband becoming more accessible to a wide
population base, e-marketing is an inevitable development.
List of Key terms
Customer relationship management
Relationship marketing
Customer development process
Rural marketing
E-marketing
14.13 Terminal Questions
1. Define customer relationship marketing.
2. State the various forms of customer relationship marketing.
3. What are the various reasons for losing customers by organizations?
4. State the significance of customer relationship management.
14.14 Answers
Answers to Self Assessment Questions:
1. Customer catching; Customer keeping
2. True
3. The prospects
4. Clients
5. Advocates
6. Humanistic relationship development; utilitarian instrumentalism
7. True
8. Customers ; stakeholders
9. True
10. Physical shopping
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Answers to Terminal Questions:
1. Refer to 7.3
2. Refer to 7.4
3. Refer to 7.6
4. Refer to 7.7