Customer Relationship Management Q3

Q. (Also posted in My-RealProperty1)

a) Explain briefly the term "customer relationship management". (5 marks)

b) Discuss the strategies for creating value for customers and capturing value from customers in return. (15 marks)

(20 marks, 2012 Q3)

A.
Customer relationship management or CRM “is the process of managing detailed information about individual customers and carefully managing all customer ‘touch points’ to maximise customer loyalty”

Kotler & Keller (2006) p 252.

A customer touch point refers to an occasion when a customer interacts with the organisation, e.g., an inquiry, a sale, receiving a piece of mail.

Other meaning of CRM can be:

“CRM is a term for methodologies, technologies and e-commerce capabilities used by companies to manage customer relationships.

Stone and Woodcock, 2001.

The best and easiest to remember is this definition of Customer Relationship Management:

"The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction."

Ref:
All the above definitions of CRM were among many given in http://www.iuc-edu.eu/group/sem1_L2/2012%20MBR/9061%20Lecture%2013.pdf
http://www1.uprh.edu/drgarced/merc3115/powerpoint14th/pom_14_inppt_cap01.pdf

b) Strategies for creating value for customer and capturing value from them in return.

Refer to

"strategy for customer satisfaction"

Ref:
Earlier posts.