This tutorial shows how eCRM draws on the basic principles of CRM, relationship marketing and database marketing. By the end of it you will also know how to:
a) list the CRM stages and
b) keep the relationship alive.
Relationship Marketing is all about building relationships with all external parties involved in marketing. CRM focuses specifically on the relationship with customers and eCRM focuses even further on the electronic relationship with customers. This means that marketers can deliver cheaper, faster and more flexible CRM.
With its customer orientation, CRM helps marketers by growing longer lasting customer relationships. So both lifetime value and customer share grow.
The best relationships are those where both partners feel they are equal and can build respect for each other through mutual understanding. From the customer’s point of view it means that the relationship, and communications in particular, are:
Speedy responses and considered responses are always appreciated by customers. In fact complaining customers can become friends for life if their problems are dealt with swiftly and professionally. So it follows that resources, the 3Ms, have to be allocated towards monitoring customer feedback and dealing with the specific non-standard problems on a one-to-one basis.
However, like all relationships, they can get stale unless you work hard at it. What does this mean? Type in below two or more suggestions for keeping the customer relationship fresh. When you have finished click on ‘reveal’ to see two more suggestions.
How can you keep the relationship alive – without changing so much that you are no longer the organisation they wanted to have a relationship with in the first place? DRAMA – that’s how!
So now let us get down to the nitty gritty of eCRM – what are the specific stages. There are many different approaches to the CRM or eCRM stages or cycle e.g. the Spiral of Prosperity, the Ladder of Loyalty, Customer Development Cycle etc. Here is a simple approach:
2. capture data
3. get closer
5. golden handcuffs
To summarise: eCRM draws on the basic principles of CRM, relationship marketing and database marketing. There are a clear set of stages in CRM development. You have to work hard at keeping the relationship alive (DRAMA). There are many benefits including: lifetime customers and increased share of wallet, which help to grow your business.