The Key To A Successful Business: Customer Relationship Management

1776 words - 7 pages

The Key To A Successful Business: Customer Relationship Management

In today’s business world it’s a dog eat dog race to the finish; everyone is highly motivated and constantly looking for the next best thing to out do the competitor with. However, many company’s and corporations fail to recognize the true value in their customers or end users. For, if a company would just take a look and the potential in profit and growth that lies right beneath their noses, they would be that much more ahead of the game. All companies should invest more time and effort into their customer relationship base, for the already existent customers are the key to a successful business. A company that advocates strong customer relationship management is the company that will take an advantage over the competition. The idea behind customer relationship management is the idea that the better you know what your customer wants and needs, the better you can satisfy the demand. Basically it is the simple concept of supply and demand, just taken to a different level.

Customer Relationship Management can be applied to all types of businesses because in some way or another they are all linked to retail or some form of selling. In Customer Relationship Management there are three phases that provide a backdrop to the process: Acquire, Enhance, and Retain. Of the three phases Retention is the most important based on the fact that the longer a business can retain a customer the more valuable the customer becomes to the company. The first phase of CRM has to do with originally getting/ acquiring customers in the first place; this acquisition can be through such methods as database analysis, direct marketing, indirect marketing and Internet marketing.

In the database analysis method of Customer Relationship Marketing a company compiles a target market profile and through software tools and programs targets the customers which they mean to market to. The target market profile of a company is key because it provides the to “whom” aspect of the process. For example, the more specific a company can be when developing their target market, the more successful they will be in getting that customer. However, it is important to note that when identifying what type of customer a company wants to target they have to use research techniques to find out who would be the most likely to benefit/ use the company’s services, i.e.: who is most likely to spend the money.

Anther key method that should be focused on is Internet marketing because the Internet, nowadays, is an important tool that can be highly advantageous if applied properly especially in Customer Relationship Management. For instance, just from the use of the internet a business is able to use such techniques as: search engines for key word listings, paid advertising for banners, pop ups, etc, email promotions, affiliate programs, portal deals, viral marketing, online classified and directories and even offline...

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