to both achieving the company’s goals and fulfilling its responsibilities. LO4 Discuss Customer Relationship Management and Identify Strategies for Creating Value for Customers and Capturing Value From Customers in Return. Broadly defined, customer relationship management is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Customer-engagement marketing aims to make a brand a meaningful part of consumers’ conversations and lives through direct and continual customer involvement in shaping brand conversations, experiences, and community. The aim of customer relationship management and customer engagement is to produce high customer equity : the total combined customer lifetime values of all the company’s customers. The key to building lasting relationships is the creation of superior customer value and satisfaction. Companies want to not only acquire profitable customers but also build relationships that will keep them and grow “share of customer.” Different types of customers require different customer relationship management strategies. The marketer’s aim is to build the right relationships with the right customers. In return for creating value for targeted customers, the company captures value from customers in the form of profits and customer equity. In building customer relationships, good marketers realize that they cannot go it alone. They must work closely with marketing partners inside and outside the company. In addition to being good at customer relationship management, they must be good at partner relationship management. LO5 Describe the Major Trends and Forces that are changing the Marketing Landscape in this Age of Relationships.
Dramatic changes are occurring in the marketing arena. The digital age has created exciting new ways to learn about and relate to individual customers. As a result, advances in digital and social media have taken the marketing world by storm. Online, social media, and mobile marketing offer exciting new opportunities to target customers more selectively and engage them more deeply. Although the new digital and social media offer huge potential, most marketers are still learning how to use them effectively. The key is to blend the new digital approaches with traditional marketing to create a smoothly integrated marketing strategy and mix. The Great Recession hit consumers hard, causing them to rethink their buying priorities and bring their consumption back in line with their incomes. Even as the post-recession economy has strengthened, consumers are now showing an enthusiasm for frugality not seen in decades. Sensible consumption has made a comeback, and it appears to be here to stay. More than ever, marketers must now emphasize the value in their value propositions.
- Spring '15