Customer Relationship Management
COIS 485:
E-Marketing Strategies
Chapter Objectives
•
After reading this chapter, you will be able to:
–
Define customer relationship management (CRM) and
identify the major benefits to e-marketers.
–
Outline the three pillars of relationship marketing for e-
marketing.
–
Describe social CRM and how it relates to traditional CRM.
–
Discuss the nine major components needed for effective
and efficient CRM in e-marketing.
–
Highlight some of the company-side and client-side tools
that e-marketers use to enhance their CRM processes.
–
Differentiate CRM metrics by customer life cycle stage.
2
Relationship Marketing Defined
•
Relationship marketing is about establishing,
maintaining, enhancing, and commercializing
customer relationships through promise
fulfillment.
•
A firm using relationship marketing focuses
more on
wallet share,
the amount of sales one
customer can generate over time, than on
market share.
4
From Mass Marketing To
Relationship Marketing
5
Stakeholders
•
The four stakeholders most affected by internet
technologies include:
–
Employees who need training and access to
data and systems used for relationship
management.
–
Business customers in the supply chain.
–
Lateral partners, such as other businesses,
not-for-profit organizations, or governments.
–
Consumers who are end users of products and
services.
6
3 pillars of relationship marketing
7
Customer Relationship Management
•
CRM is a philosophy, strategy, and process that
includes all 3 pillars.
•
The benefits of CRM 1.0 include:
–
Increased revenue from better targeting.
–
Increased wallet share with current customers.
–
Longer retention of customers.
•
The cost of acquiring a new customer is typically 5
to 7 times higher than the cost of retaining a
current customer.
