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 Marketing5
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 marketing7
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.