CustomerRelationshipManagement
- 格式:pdf
- 大小:245.04 KB
- 文档页数:34
顾客关系管理顾客关系管理(Customer Relationship Management,CRM),是指企业或组织与顾客之间的互动和关系管理,旨在提高企业盈利能力、市场竞争力和顾客满意度,实现“顾客为尊”的经营理念。
顾客关系管理实质上是通过各种手段来获取、理解并整合顾客信息,以实现对顾客的个性化服务和管理,最终实现企业与顾客之间的良好关系,并获得顾客的忠诚和长期合作的策略性管理模式。
顾客关系管理的核心是“顾客中心”理念,也就是以顾客为中心的服务与管理策略。
企业应该注重顾客需求,通过建立有效的顾客沟通渠道,及时获取顾客反馈,理解顾客的需求和偏好,为顾客提供个性化、定制化的服务和产品,从而提高顾客满意度和忠诚度,进而增加企业的市场竞争力和盈利能力。
顾客关系管理的实施需要从以下几个方面入手:1. 建立顾客信息库企业应该建立起完善的顾客信息库,包括顾客基本信息、购买历史、服务记录、反馈意见等信息。
这些信息是企业了解顾客需求、反馈、偏好和行为的重要数据来源,也是企业开展个性化服务和管理的基础。
2. 实施个性化服务企业应该通过顾客信息库了解顾客需求和偏好,针对不同顾客提供个性化的服务和管理。
这样能够提高顾客满意度和忠诚度,促进企业与顾客之间的良好关系。
3. 建立有效的顾客沟通渠道企业应该与顾客建立起有效的沟通渠道,包括电话、邮件、短信、社交媒体等多种方式。
通过及时地回复顾客反馈,解答顾客问题,关心顾客需求,提高顾客对企业的信任和满意度,加强企业与顾客之间的联系和沟通。
4. 培养顾客忠诚度企业应该通过精准的个性化服务和管理,提高顾客满意度和忠诚度。
同时,企业也需要在服务和品质上不断提升,以增加顾客的黏性,并通过打造品牌口碑来吸引更多的潜在顾客,实现业务的可持续发展。
综上所述,顾客关系管理是企业与顾客之间进行互动管理和服务的一项重要任务。
企业应该以顾客为中心,建立顾客信息库、实施个性化服务、建立有效的顾客沟通渠道和培养顾客忠诚度,以提高企业的市场竞争力和盈利能力,并获得顾客的忠诚和长期合作。
Customer Relationship Management (CRM) SystemCustomer Relationship Management (CRM) is a system used to manage customer relationships and interactions with customers. It is a software solution that helps businesses to track customer data, analyze customer behavior, and create personalized customer experiences.CRM systems are designed to helpbusinesses better understand their customers and build stronger relationships with them. This can be done by managing customer data, tracking customer interactions, and creating personalized customer experiences.CRM systems are used by businesses to manage customer data, analyze customer behavior, and create personalized customer experiences. The data collected by a CRM system can be used to better understand customer needs, preferences, and behaviors. Thisdata can then be used to create personalized customer experiences that are tailored to the customer’s individual needs and preferences.The CRM system can also be used to track customer interactions, such as phone calls, emails, and social media posts. This data can be used to create a better understanding of customer needs and preferences. By tracking customer interactions, businesses can identify trends and patterns in customer behavior and use this information to improve customer service and createbetter customer experiences.The CRM system can also be used to create personalized marketing campaigns. By analyzing customer data, businesses can create targeted campaigns that are tailored to the individual customer. This can help businesses to better engage customers and increase sales.The CRM system can also be used to automate customer service processes. By automating customer service processes, businesses can reduce costs andimprove customer satisfaction. Automation can also help businesses to respond to customer inquiries more quickly and efficiently.The CRM system can also be used to analyze customer data and create reports. By analyzing customer data, businesses can identify trends and patterns in customer behavior and use this information to improve customer service and create better customer experiences.The CRM system can also be used tocreate customer loyalty programs. By creating loyalty programs, businesses can reward customers for their loyalty and encourage them to continue to do business with the company.The CRM system can also be used to create customer surveys. By creating customer surveys, businesses can gather feedback from customers and use this feedback to improve customer service and create better customer experiences.The CRM system can also be used to create customer loyalty programs. Bycreating loyalty programs, businesses can reward customers for their loyalty and encourage them to continue to do business with the company.The CRM system can also be used to track customer service requests. By tracking customer service requests, businesses can identify trends and patterns in customer service and use this information to improve customer service and create better customer experiences.The CRM system can also be used to create customer segmentation. Bysegmenting customers, businesses can create personalized customer experiences that are tailored to the individual customer.The CRM system can also be used to track customer feedback. By tracking customer feedback, businesses can identify trends and patterns in customer feedback and use this information to improve customer service and create better customer experiences.The CRM system can also be used to track customer loyalty. By trackingcustomer loyalty, businesses can identify trends and patterns in customer loyalty and use this information to improve customer service and create better customer experiences.The CRM system can also be used to create customer surveys. By creating customer surveys, businesses can gather feedback from customers and use this feedback to improve customer service and create better customer experiences.The CRM system can also be used to track customer complaints. By trackingcustomer complaints, businesses can identify trends and patterns in customer complaints and use this information to improve customer service and create better customer experiences.The CRM system can also be used to track customer satisfaction. By tracking customer satisfaction, businesses can identify trends and patterns in customer satisfaction and use this information to improve customer service and create better customer experiences.The CRM system can also be used tocreate customer segmentation. By segmenting customers, businesses can create personalized customer experiences that are tailored to the individual customer.The CRM system can also be used to track customer trends. By tracking customer trends, businesses can identify trends and patterns in customer behavior and use this information to improve customer service and create better customer experiences.The CRM system can also be used totrack customer loyalty. By tracking customer loyalty, businesses can identify trends and patterns in customer loyalty and use this information to improve customer service and create better customer experiences.The CRM system can also be used to create customer loyalty programs. By creating loyalty programs, businesses can reward customers for their loyalty and encourage them to continue to do business with the company.The CRM system can also be used tocreate customer segmentation. By segmenting customers, businesses can create personalized customer experiences that are tailored to the individual customer.The CRM system can also be used to track customer engagement. By tracking customer engagement, businesses can identify trends and patterns in customer engagement and use this information to improve customer service and create better customer experiences.The CRM system can also be used totrack customer loyalty. By tracking customer loyalty, businesses can identify trends and patterns in customer loyalty and use this information to improve customer service and create better customer experiences.The CRM system can also be used to create customer segmentation. By segmenting customers, businesses can create personalized customer experiences that are tailored to the individual customer.The CRM system can also be used totrack customer feedback. By tracking customer feedback, businesses can identify trends and patterns in customer feedback and use this information to improve customer service and create better customer experiences.The CRM system can also be used to create customer surveys. By creating customer surveys, businesses can gather feedback from customers and use this feedback to improve customer service and create better customer experiences.The CRM system can also be used tocreate customer loyalty programs. By creating loyalty programs, businesses can reward customers for their loyalty and encourage them to continue to do business with the company.The CRM system can also be used to track customer service requests. By tracking customer service requests, businesses can identify trends and patterns in customer service and use this information to improve customer service and create better customer experiences.The CRM system can also be used totrack customer satisfaction. By tracking customer satisfaction, businesses can identify trends and patterns in customer satisfaction and use this information to improve customer service and create better customer experiences.The CRM system can also be used to create customer segmentation. By segmenting customers, businesses can create personalized customer experiences that are tailored to the individual customer.The CRM system can also be used totrack customer trends. By tracking customer trends, businesses can identify trends and patterns in customer behavior and use this information to improve customer service and create better customer experiences.The CRM system can also be used to track customer engagement. By tracking customer engagement, businesses can identify trends and patterns in customer engagement and use this information to improve customer service and create better customer experiences.The CRM system can also be used to automate customer service processes. By automating customer service processes, businesses can reduce costs and improve customer satisfaction. Automation can also help businesses to respond to customer inquiries more quickly and efficiently.The CRM system can also be used to track customer feedback. By tracking customer feedback, businesses can identify trends and patterns in customer feedback and use this information to improve customer service and createbetter customer experiences.The CRM system can also be used to create customer loyalty programs. By creating loyalty programs, businesses can reward customers for their loyalty and encourage them to continue to do business with the company.The CRM system can also be used to create customer segmentation. By segmenting customers, businesses can create personalized customer experiences that are tailored to the individual customer.The CRM system can also be used to track customer trends. By tracking customer trends, businesses can identify trends and patterns in customer behavior and use this information to improve customer service and create better customer experiences.The CRM system can also be used to create customer surveys. By creating customer surveys, businesses can gather feedback from customers and use this feedback to improve customer service and create better customer experiences.The CRM system can also be used to track customer loyalty. By tracking customer loyalty, businesses can identify trends and patterns in customer loyalty and use this information to improve customer service and create better customer experiences.The CRM system can also be used to track customer complaints. By tracking customer complaints, businesses can identify trends and patterns in customer complaints and use this information to improve customer service and createbetter customer experiences.Overall, the CRM system is an invaluable tool for businesses that want to manage customer relationships and interactions. By analyzing customer data, tracking customer interactions, and creating personalized customer experiences, businesses can better understand their customers and build stronger relationships with them. This can help businesses to increase sales and improve customer satisfaction.。
《客户关系管理》课程标准制定人:高胜寒制定时间:2013年4月5日湖南外贸职业学院《客户关系管理》课程标准二、课程性质本课程是市场营销专业的一门专业核心课,通过本课程的学习,使学生掌握客户关系管理的理论渊源、CRM系统的构成、CRM系统的实际应用,培养学生在客户关系管理系统方面的实际应用能力,为将来从事客户关系管理工作和研究、开发、实施CRM 系统奠定坚实的基础。
三、课程任务本课程的任务是要求学生掌握客户关系管理的内涵、主题分析内容和基本方法、运作模式,理解客户管理关系系统结构、功能、技术体系与实施策略,掌握客户管理关系中的智能决策支持技术与作用,并能初步具备利用信息技术与智能技术设计或选择CRM系统解决方案的能力。
四、课程标准的设计思路本课程设计的总体思路是坚持“以职业岗位为课程目标,以职业能力为课程核心,以职业标准为课程内容,以学生为主体,以教师为引导”。
在教学设计中以具体的“客户管理与客户服务项目”为平台,进行基于工作过程、行动导向的课程设计,形成“教、学、做”一体化的课程,以工作过程为导向,开展任务驱动型教学。
该门课程的建议总学时:72学时。
五、课程目标通过本课程教学,培养学生良好的职业态度、职业意识、职业思维和职业精神,熟练掌握客户服务部对客户服务技能,逐步形成管理能力和创新能力,为在行业中的发展奠定坚实的基础。
2.1知识目标了解客户关系管理的基本知识、要素,掌握客户关系管理的基本方法,掌握客户关系管理的主要工作的任务和流程,掌握客户细分及其管理策略等内容,了解数据挖掘方法在客户关系管理中基本应用。
1.客户关系管理的概念与内涵、意义与作用,以及客户关系管理的动因和实施现状。
2. 分析谁是潜在客户,如何找到并开发潜在客户,和怎么把潜在客户变成新客户;3.如何建立客户信息来源并建档,以及如何分析客户资料。
4.如何界定大客户,如何分析大客户资料并制定计划,以及如何为大客户服务。
5. 如何根据客户的要求设计客户体验平台,如何进行体验式营销。
客户关系管理英语Customer Relationship Management (CRM) is a crucial aspect of any business, as it involves the management of a company's interactions with current and potential customers. This process is essential for maintaining and improving customer satisfaction, thus leading to customer loyalty and retention. CRM also encompasses various strategies and technologies that companies use to manage and analyze customer interactions throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention, and driving sales growth. One of the key components of effective CRM is the use of customer data to better understand and meet the needs of the customers. This involves collecting and analyzing customer information, such as their purchasing history, preferences, and feedback, to tailor products and services to their specific needs. By leveraging customer data, companies can personalize their marketing efforts, provide better customer service, and ultimately build stronger relationships with their customers. In addition to leveraging customer data, effective CRM also involves the use of technology to streamline and automate various customer interactions. This can include the use of CRM software to manage customer information and interactions, as well as the use of customer servicetools to provide timely and personalized support. By utilizing technology in this way, companies can improve the efficiency of their customer interactions, leading to greater customer satisfaction and loyalty. Another important aspect of CRM is the emphasis on building and maintaining strong customer relationships. This involves not only providing excellent products and services, but also actively engaging with customers to build trust and loyalty. This can be achieved through regular communication, personalized offers, and proactive problem-solving. By focusing on building strong relationships with customers, companies can create a loyal customer base that is more likely to continue doing business with them in the long term. Furthermore, effective CRM also involves the alignment of various departments within a company to ensure a consistent and seamless customer experience. This means that sales, marketing, and customer service teams must work together to deliver a unified message and experience to customers. By breaking down silos and fostering collaboration between departments, companies can create amore cohesive and customer-centric approach to their business, ultimately leading to improved customer satisfaction and loyalty. Lastly, it is important to recognize that CRM is an ongoing process that requires continuous improvement and adaptation. Customer needs and preferences are constantly evolving, and companies must be willing to adapt their CRM strategies to meet these changing demands. This may involve investing in new technologies, refining customer data analysis, or adjusting customer engagement strategies. By staying agile and responsive to customer needs, companies can ensure that their CRM efforts remain effective and impactful in the long term. In conclusion, effective CRM is essential for businesses looking to build and maintain strong customer relationships. By leveraging customer data, utilizing technology, focusing on relationship building, aligning internal departments, and staying adaptable, companies can create a customer-centric approach that leads to greater customer satisfaction, loyalty, and ultimately, business success.。
CR辰员管理系统产品概述MRM平台概述CRM是客户关系管理(Customer Relationship Management) 的简称,是明源地产ERP的重要组成部分之一,它是基于地产行业在客户特征、产品特征、销售流程、服务模式、营销手段等方面独特的行业特色开发而成的,涵盖市场营销、销售/租赁、物业/客户服务、客户会以及客户互动门户等一系列与客户相关的业务,是以客户为核心的一体化业务运作平台。
对地产企业而言,CRM平台的价值主要体现在增加现有客户的收益,准确挖掘高价值的客户,提高营销活动的效果,提升自身的运营能力等方面。
CRM系统包括售楼管理子系统、租赁管理子系统、会员管理子系统和客户服务子系统等,提供了覆盖客户整个生命周期的管理流程和平台。
K CRM会员管理系统概述明源CRM会员管理系统是用来管理房地产会员业务的平台。
该系统以会员(客户)记录为中心,提供会员信息化共享平台、准确挖掘高价值的客户、简化各个业务部门工作等等,使企事业会员俱乐部将注意力集中于满足客户的各项需要,逐步建立起多种多样的与会员进行交流和互动的渠道一一如:面对面、电话接洽、网站BBS系统、电子邮件、手机短信、客户会杂志、会员活动等一一协调在一个统一的平台之上,这样,不仅为企业提供了全方位的客户视角,更为重要的是,可以按照会员的喜好使用适当的渠道与之进行有效的互动交流。
依托这个信息化的平台,地产企业可以根据本公司的特色特点,发展适合自身情况的会员维系计划,促进整体经营水平的提高。
系统特点高效的会员业务管理工具结合多家会员组织成熟运作的经验,总结提炼其业务运作模式和业务处理经验,能够适应大批量会员业务处理、日常零星业务处理等各种业务场景;合理的系统模块划分与系统操作方式最大程度上保证了通过系统对会员业务的高效处理。
广泛的会员业务管理范围将会员业务的入会过程、会员资料维护、会员积分与奖励管理、会员级别管理、会员信息推广、会员活动管理、联盟商家管理等全部纳入了系统管理的范畴,充分涵盖了会员核心业务范围。
客户关系管理Customer Relationship Management Re:MarketingCRM概念引入中国已有数年,其字面意思是客户关系管理,但其深层的内涵却有许多的解释。
以下摘录国外研究CRM的几位专家对CRM的不同定义,通过这些定义让我们对CRM有一个初步的认识。
最早提出该概念的Gartner Group认为:所谓的客户关系管理就是为企业提供全方位的管理视角;赋予企业更完善的客户交流能力,最大化客户的收益率。
一、CRM是一项营商策略,透过选择和管理客户达至最大的长期价值。
CRM需要用以客户为中心的营商哲学和文化来支持有效的市场推广、营销和服务过程。
企业只要具备了合适的领导、策略和文化,应用CRM可促成具效益的客户关系管理。
二、CRM是关于发展和推广营商策略和支持科技以填补企业在获取、增长和保留客户方面目前和潜表现的缺口。
它可为企业做什么?CRM改善资产回报,在此,资产是指客户和潜在客户基础。
三、CRM是信息行业用语,指有助于企业有组织性地管理客户关系的方法、软件以至互联网设施。
譬如说,企业建造一个客户数据库充分描述关系。
因此管理层、营业员、服务供应人员甚至客户均可获得信息,提供合乎客户需要的产品和服务,提醒客户服务要求并可获知客户选购了其它产品。
四、CRM是一种基于Internet的应用系统。
它通过对企业业务流程的重组来整合用户信息资源,以更有效的方法来管理客户关系,在企业内部实现信息和资源的共享,从而降低企业运营成本,为客户提供更经济、快捷、周到的产品和服务,保持和吸引更多的客户,以求最终达到企业利润最大化的目的。
五、CRM 是 Customer Relationship Management(客户关系管理)的缩写,它是一项综合的IT技术,也是一种新的运作模式,它源于“以客户为中心”的新型商业模式,是一种旨在改善企业与客户关系的新型管理机制。
是一项企业经营战略,企业据此赢得客户,并且留住客户,让客户满意。
毕业设计(论文)外文文献翻译文献、资料中文题目:客户关系管理文献、资料英文题目:CUSTOMER RELATIONSHIP MANAGEMENT 文献、资料来源:文献、资料发表(出版)日期:院(部):专业:班级:姓名:学号:指导教师:翻译日期: 2017.02.14CUSTOMER RELATIONSHIP MANAGEMENTAs. univ. drd. Mihaela Cornelia PrejmereanLect. univ. dr. Alina Mihaela DimaAcademy of Economic Studies, BucharestAbstract: After 17 years of economical and market development, Romanian companies face a new challenge: the tough competition from the European Union and the battle for the customers. The Romanian enterprises will have to learn not only how to attract customers, but also how to keep them. Marketing programs include now aspects regarding customer orientation, relationship management, loyalty and quality. In this paper, we will follow the main aspects, characteristics, dimensions and processes of Customer Relationship Management, and we will analyze the challenges that the local companies will have to face. Examples from the financial service sector will round the actual situation of the implementation of the CRM rules and principles in Romania.Keywords: marketing information system; customer relationship management; business asset, customer acquisition; customer retention.1. IntroductionIn the last decade, the majority of the companies were preoccupied with production, recession, mergers, new technologies and business regulation. Romania’s accession in the European Union will bring many advantages for further development, together with membership in a Common Market with common policies on product regulation, and freedom of movement for all the four factors of production (goods, services, capital and labor). This means that Romanian companies will compete with other companies from the EU directly in their home market. European companies are more flexible and mobile and will put a high pressure on the local companies in order to produce better products, launch better offers and services and orientate more towards their customers. High revenue equals important customer is a classic rule when the company organises its customer policy. “An important customer brings a gross amount of money for our enterprise” has become a reflex for many companies abroad and perhaps in Romania, too. But is this always true, or do we need more information than a simple figure reported at the end of the year?2. Marketing information systemA winning company is more productive in acquiring and retaining customers, to expand its clientele (Kotler, 2003). This company improves the value of the customers by reducing the rate of defection, increasing the longevity of customer Management& marketing relationship, making low-profit customers more profitable or terminating them etc. Gathering information on the actual or potential marketplace not only allows the organisation to monitor trends and issues concerning its current customers, but also helps it identify and profile potential customers and new markets, to keep track of its competition, their strategies, tactics and future plans (Brassington and Pettitt,2003). In order to collect and organize a high quantity of diverse information, the enterprises started to build marketing information systems. There are, mainly, a set of procedures and methods by which pertinent, timely and accurate information is continually gathered, sorted, analysed, evaluated, stored and distributed for the use of marketing decision makers (Zikmund and D´Amico,1993). The marketing information system includes data from external and internal sources (sales records, customer records, marketing communications, and sales force information). The focus on the customer and the integration of the marketing function helps the company to create customer databases with comprehensive information about individual customers or prospects.Understanding behaviour of consumers is a key to the success of business organizations.Marketing personnel are constantly analyzing the patterns of buying behaviour and purchase decisions to predict the future trends. Consumer behaviour can be explained as the analysis of how, when, what and why people buy. Consumer behavior can be understood as: "The decision process and physical activity individuals engage in when evaluating, acquiring, using, or disposing of goods and services." (Loudon and Della Bitta, 1980). Nowadays, this phenomenon, can also be illustrated in the following way: "activities people undertake when obtaining, consuming, and disposing of products and services" (Blakwell, Minard and Engel, 2001).A study by Voss and Parasuraman (2003) suggests that the purchase preference is primarily determined by price than quality duringpre-purchase evaluation. Given explicit quality information, price had no effect on pre-purchase or post consumption quality perceptions. Instead, post consumption quality evaluations had a favorable impact on price evaluations.Another study by Chernev (1997) analyzed the effect of common features on brand choice and the moderating role of attribute importance. It is argued that when brand attributes differ in importance, with the best value on the most important attribute, thus further polarizing brands’ choice shares. In contrast, when attributes are similar in their importance, common features are likely to have an opposite effect, equalizing brands share.Russo and France (1994), studied the nature of the choice process for commonly purchased non-durables by tracking eye fixations in a laboratory simulation of supermarket shelves. The findings are fully compatible with the general view that the choice process is constructed to adapt to the immediate purchase environment.While describing about shopping orientation, Sinha (2003) reports that Shoppers seek emotional value more than the functional value of shopping. Their orientation is based more on the entertainment value than on the functional value. The orientation is found to be affected primarily by the type of store, the frequency of buying and to some extent by thesocio-economic classification. The retailers need to experiment with a format that attracts both types of shoppers.Research suggests that beauty consciousness among people in general is changing. Vigneron and Johnson (1999) reported that people's needs for appearances and materialism were increasing.That is human beings wanted to satisfy the need to look and feel good. This created a boom in the cosmetic and toiletries sector across the world. Chambers Encyclopedia defines cosmetics as (a)articles intended to be rubbed, poured, sprinkled or sprayed on, introduced into or other wise applied to the human body or any part there of for cleaning, beautifying, promoting attractive nessor altering the appearance and (b) articles intended for use as a component of such articles.Now avariety of cosmetic and toiletries ranging from natural to sophisticated items are available in themarket. The pattern and preference of use of these items vary according to different segments of gender, age and socio-economic class. When we review the literature on the cosmetic and toiletry industry, not many studies are available especially about Indian scenario. The present study is an attempt to analyse the purchasing pattern of cosmetic consumers.3. Customer relationship managementCustomer Relationship Management has been around for the last 30 years, but it became very important when companies changed their attitude towards marketing function. Nowadays, the cross-functional approach to marketing requires an organizational culture and climate that encourages collaboration and cooperation between departments. People within the business must understand their role in serving customers, internal or external one. CRM builds on the principles of relationship marketing and recognizes that customers are a business asset and not simply a commercial audience, implies the structuring of the company from functions to processes, information are used proactively rather than reactively and develops the ne-to-one marketing approaches (Payne, 2006).When defining CRM, we must first explain the difference between customer acquisition and customer retention. The two concepts have different drivers. Attracting customers has become very difficult these days, when people are harder to please. They are smarter, price conscious and sensitive, more demanding, less forgiving, and they are approached by many more competitors with equally good or better offers (Kotler,2003). Companies focus more on sales analysis, customer segmentation, advertising, merchandising and campaign management. The more difficult part is keeping the customers. According to Bruhn, a customer is satisfiedwhen the comparison between offer and consumption fulfils his/her expectations, after he/she accepts the company, trusts it and exhibits a positive attitude towards it, becomes loyal to that company. In this situation, the customer talks favourably about the company and about its products, pays less attention to competing brands and is less sensitive to price, which turns transactions into routine (Bruhn, 1999). With customer retention, the company must pay attention to service satisfaction and trust in Customer relationship management the organization and its staff. Some companies believe that if a customer complaints the problem will be solved, but 96% of unsatisfied customers don’t com plain and go to another company. Therefore, Customer Relationship Management is the mechanism for retaining customers (Russell-Jones, 2003). Mainly CRM allows the company to understand who their customer is, isolate the best customer (those with whom you desire to have long-standing relationships), create relationships stretching over time and involving multi-interactions, manage the relationship to mutual advantage, seek to acquire more of those “best” customers. Inputs like marketing strategy, customer base, products, and regulation, competitors and staff skills are synthesized in a CRM programme which creates outputs as customer service, customer retention, higher share of wallet, customer referral, more predictable revenues streams, improved profitability, lower costs and better compliance (Russell-Jones, 2003).4. Developing a strategy in customer relationship managementBecause CRM is a cross-functional activity and large companies have thousands and millions of customers, the need for a strategic framework is very high. The dimensions of a CRM strategy are mainly focused on defining the following topics:- object of the customer relationship management – the company has three options: focusing on the company itself, on a brand or on the distributor;- target segment –the company usually sets priorities between different customer segments, it defines strategic customers based on the portfolio analyses, factors as revenue, length of the relationship, income, collaboration with the customer. These are its analysis criteria;- ways of retaining the customers –customers’ satisfaction is in the centre of all the decisions, but customers retention can also become a central issue through contractual clauses, such as service, leasing and warranty;- choosing the instruments of CRM – the company combines the instruments of the 4P´s with focus on the customer;- intensity and timing of the CRM decisions –show when and how should the company introduce different instruments; programmes can last from one day to one week, or from three month to two years;- cooperation within the CRM programme –sometimes the company must cooperate with other partners from the distribution channel, mainly between producer and wholesaler and retail.5. Instruments of customer relationship managementThe communication policy plays an important role in the instruments mix. It follows two objectives: first, to build a permanent dialogue with the customer in order to stabilize or change its expectations, and second, to counteract influences after consumption. The main CRM instruments within the communication policy are: Direct-Mail is material distributed through the postal service to the recipients’ home or business address to promote a product or service. In CRM the mailed issue can vary from a simple letter to a catalogue, and its sending will always occur at a particularmoment in customer’s life (birthday, invitation for an event). It must incorporate sticky gadgets to increase their chances of being opened and read; Newsletters are distributed to customers for free and contain information about new products, offers for special events and others; Fidelity cards (store cards) are an important tool in gathering information about customer behaviour. By accumulating points of fidelity, the customer can benefit from different special offers; Clients club designates a concept which has grown in parallel with the fidelity cards. Its main forms are VIP-Club, Fan-Club, Product-Interest-Club, and Lifestyle-Club. The club represents an opportunity for the company to make offers in accordance with the social status, acceptance, prestige and expectations of its customers;Spending on cosmetics and toiletries is relatively small, with rural and suburban areas concentrating on basic toiletries and cosmetics. The purchasing power consumers is increasing thereby shaping the aspirations and lifestyles of consumers, who are upgrading to good value products at affordable prices. The Cosmetic Companies have invested heavily on promoting product visibility among rural folk, which has increased the demand for bar soap, talcum powder,lipstick, tooth powder and hair oil in these areas. This has also increased the demand for essential everyday items like bath and shower products, hair care, oral hygiene and skin care. Another strategy followed by companies to promote cosmetics in rural areas was sachets’ approach.While rural contributed to growth in volume terms, the urban population contributed 69 %of value sales in 2005 especially for sophisticated products. These high-quality added-value niche products include mascara, toners, body wash/shower gel, depila tories, sun care and deodorants,amongst others which are unaware to the rural users. Sales are almost completely generated fromthe urban pockets, concentrated within the key metropolitan areas. Due to Western influences, men's grooming products are used more predominantly in urban population compared to their counterparts in rural areas.Telemarketing allows companies to undertake marketing research and is highly measurable and accountable; the number of positive and negative responses are easily recorded and monitored. It provides for interaction, is flexible and permits immediate feed-back. Online-marketing includes many forms such as on-line advertising, on-line sales promotions, on-line direct marketing, on-line public relations, one-line personal selling. The medium used is the internet and the main instrument is the email. Virtual promotions are cheaper than hard copy versions, but the challenge is to drive traffic toyour company’s Web site. Event-marketing takes place in three main areas: the product (here, it focuses on increasing sales), the corporation (for developing a corporate body) and the community (to make a difference in the life of the local community) (Bruhn, 1999& Fill, 2002).The price policy can be thought about in various ways when building a CRM programme: discounts for special customers, underselling or matching competitors, loyalty refunds, bundling items together and offering overall prices. Although price is not a measure of inherent value received, it is often used by customers as a benchmark, ignoring any other features or differences.Key factors in the product policy are the product itself, with quality, design, technical features, packaging and service management which includes lifelong warranty, price warranty or a customer telephone line. An active management in the distribution policy can focus on the customer or on the distribution channel. The producer evaluates the activity of the distribution partner and Customer relationship management intervenes when needed. The focus on the customers is realised througha Key Account Management which develops programmes for special customers.6. Customer relationship management in financial servicesFinancial services differ from many other industries. This can be seen particularly in Romania, where 40 commercial banks fight for a population of 21 million citizens. They cover the whole spectrum of customers from individuals to partnerships, institutions, corporations and governments. As a result, it can be very difficult to focus on single markets. Customers are often in two positions: they may have a deposit and savings accounts, but also loans and overdrafts. They are very service focused, they sell only intangibles. Financial services require processing billions of transactions worldwide and they are one of the heaviest regulated industries in the world (Rusell-Jones, 2003).The customers in the financial services are better informed, are switching channels, and seem to be more demanding of service, and used to change. The market is also highly competitive and new entrants are coming with diverse products and approaches.The industry of financial services in Romania has a very high potential and registers every year high growth rates. Till now, the location in a major city of the country with a population around 300.000 people was an advantage of the business and a success factor. Now the battlefield has moved in the small towns. The competition became tougher; banks began to develop and to introduce new products. Some experts say that a weakness of the banking sector is market segmentation. There is lots of information about customers, but it seems that banks prefer to focus on clients with large savings accounts. The main banks in Romania, as BRD, BCR, ING, and HVB-Tiriac announced for the year 2005 an increase in the number of the private banking clients. These are mainly customers with accounts between 50.000 and 100.000 Euros, they benefit of private consultancy, special interest rates, commissions, and special insurances. Customers have also a word to say about their bank. A market study made by Deadalus Consulting revealed that the customer profile forbanking services is: person aged between 45-55 years, with higher or middle education. The most utilized service is the bank card for salaries payment (32,6%). Next, savings accounts (10,2%), credits for personal needs (11,1%), credits for buying electronics (9,2%) and auto leasing. The best grades were received by Raiffeisen Bank (8,83), BCR (8,58) and BRD Societe Generale (8,57). A customer’s criteria when choosing a bank are the trust in the bank, the environment in the branch, the quality of the staff, the advice they receive, the best interest rate they can receive, the information about the credit costs, and the conditions for obtaining a credit. A successful service provided by the majority of the banks is internet banking. It allows clients to save time and money, without going to the bank, 24 of 24 from inside or abroad. The access is free of charge or very cheap, and includes all kinds of activities from money transfer, payment orders, currency exchange, payment of current bills, external payments etc. The rate of penetration is still low, ranking between 10% and 30% of the customers in one middle bank.7. ConclusionsRomanian companies must focus in the future on the Customer Relationship Management and try to turn a “susceptible” client into a “partner”, to transform people who once needed their product/service, or occasional business partners into supporters and advocates and, eventually, into loyal partners that “sell” on the behalf of the company. Companies must create a permanent dialogue with their customers, and fight for them, because the clientele is not given for free. Customers that were price sensitive show now a higher interest in quality, service and behaviour of staff, and a company which concentrated on a price strategy should check how prepared its rivals are for a competition in the aforementioned fields. Customer Relationship Management increases its flexibility and adaptability to the market, in a world of capricious clients.客户关系管理这是一份来自布加勒斯特(罗马尼亚首都)经济学院的研究:摘要:经过17年市场经济的发展,罗马尼亚的公司面临着一个新的挑战:来自欧盟的激烈竞争和抢夺消费者的大战。
客户需求管理英语作文Customer relationship management (CRM) is a critical aspect of modern business operations. In this essay, we will explore the importance of managing customer needs effectively and how it can lead to business success.Understanding Customer NeedsThe first step in customer needs management is understanding what the customer wants. This involves active listening and gathering information through surveys, feedback forms, and direct interactions. It's essential to segment customers based on their needs and preferences to tailor the products and services accordingly.Implementing CRM SystemsA CRM system is a valuable tool for managing customer data and interactions. It allows businesses to track customer history, preferences, and interactions with the company. This data can then be used to personalize communications and offers, leading to higher customer satisfaction and loyalty.Customization and PersonalizationCustomers appreciate when a company takes the time to understand their unique needs and preferences. Personalizing the customer experience can be as simple as addressing acustomer by name in an email or as complex as customizing a product to meet specific requirements.Continuous ImprovementCustomer needs are not static; they evolve over time. Businesses must be agile and continuously seek feedback to improve their offerings. Regularly reviewing customer satisfaction surveys and adapting to the findings can help a company stay ahead of the competition.Building Trust and LoyaltyEffective management of customer needs builds trust and loyalty. When customers feel heard and valued, they are more likely to become repeat customers and recommend the business to others. This word-of-mouth marketing is invaluable and can significantly impact a company's growth.Challenges and SolutionsDespite the benefits, managing customer needs can be challenging. Businesses may face issues such as conflicting customer demands or resource limitations. Solutions can include prioritizing customer needs based on profitability and long-term value, and investing in technology that streamlines the process.ConclusionIn conclusion, managing customer needs is a dynamic processthat requires ongoing attention and adaptation. By understanding and responding to customer needs, businesses can foster strong relationships, increase customer satisfaction, and ultimately, drive business success. The implementation of CRM systems, customization, continuous improvement, and building trust are all key components of effective customer needs management.。
Journal of Economic and Social Research 3(2) 2001, 2002 Preliminary Issue, 1-34 Customer Relationship Management:Emerging Practice, Process, and DisciplineAtul Parvatiyar1 & Jagdish N. Sheth2Abstract.Customer relationship management (CRM) has once again gained prominence amongst academics and practitioners. However, there is a tremendous amount of confusion regarding its domain and meaning. In this paper, the authors explore the conceptual foundations of CRM by examining the literature on relationship marketing and other disciplines that contribute to the knowledge of CRM. A CRM process framework is proposed that builds on other relationship development process models. CRM implementation challenges as well as CRM's potential to become a distinct discipline of marketing are also discussed in this paper.JEL Classification Codes: M31.Key Words: Customer Relationship Management; Relationship Marketing; CRM Process; CRM Definition; CRM Strategy; CRM Programs; CRM Implementation; CRM and Relationship Marketing Discipline.1. IntroductionCustomer relationship management (CRM) has attracted the expanded attention of practitioners and scholars. More and more companies are adopting customer-centric strategies, programs, tools, and technology for efficient and effective customer relationship management. They are realizing the need for in-depth and integrated customer knowledge in order to build close cooperative and partnering relationships with their customers. The emergence of new channels and technologies is significantly altering how companies interface with their customers, a development bringing about a greater degree of integration between marketing, sales, and customer service functions in organizations. For practitioners, CRM represents an enterprise approach to developing full-knowledge about customer behavior 1 Robinson Research Fellow & Associate Professor of Marketing , J.Mack Robinson College of Business, Georgia State University, USA2 Charles H.Kellstadt Professor of Marketing, Goizueta Business School, Emory University, USAAtul Parvatiyar & Jagdish N. Sheth2and preferences and to developing programs and strategies that encourage customers to continually enhance their business relationship with the company.Marketing scholars are studying the nature and scope of CRM and are developing conceptualizations regarding the value and process of cooperative and collaborative relationships between buyers and sellers. Many scholars with interests in several sub-disciplines of marketing, such as channels, services marketing, business-to-business marketing, advertising, and so forth, are actively engaged in studying and exploring the conceptual foundations of managing relationships with customers. They are interested in strategies and processes for customer classification and selectivity; one-to-one relationships with individual customers; key account management and customer business development processes; frequency marketing, loyalty programs, cross-selling and up-selling opportunities; and various forms of partnering with customers including co-branding, joint-marketing, co-development, and other forms of strategic alliances (Parvatiyar & Sheth, 2000).Scholars from other academic disciplines, particularly those interested in the area of information systems and decision technologies, are also exploring new methodologies and techniques that create efficient front-line information systems (FIS) to effectively manage relationships with customers. Several software tools and technologies claiming solutions for various aspects of CRM have recently been introduced for commercial application. The majority of these tools promise to individualize and personalize relationships with customers by providing vital information at every point in the interface with the customer. Techniques such as collaborative filtering, rule-based expert systems, artificial intelligence, and relational databases are increasingly being applied to develop enterprise level solutions for managing information on customer interactions. The purpose of this paper is not to evaluate these application tools and technologies. Those aspects are considered elsewhere by the authors as well as by several commercial research organizations, such as Forrester Research and the Gartner Group. Our objective is to provide a conceptual foundation for understanding the domain of customer relationship management. To do so, we develop a framework for understanding the various aspects of CRM strategy and implementation. A synthesis of the existing knowledge on CRM done by integrating diverse explorations forms the basis of our framework. We draw upon the literature on relationship marketing, as CRMCustomer Relationship Management:3Emerging Practice, Process, and Disciplineand relationship marketing are not distinguished from each other in the marketing literature (Parvatiyar & Sheth, 2000).In the sections that follow, we define what CRM is and what it promises to offer. We also identify the forces impacting on the marketing environment in recent years that have led to the rapid development of CRM strategies, tools, and technologies. A typology of CRM programs is presented to provide a parsimonious view of the various terms and terminologies that are used to refer to different activities. We then describe a process model of CRM to better delineate the challenges of customer relationship formation, its governance, its performance evaluation, and its evolution. Finally, we examine the research issues related to CRM.2. What is Customer Relationship Management (CRM)?Before we begin to examine the conceptual foundations of CRM, defining what CRM is would be useful. In the marketing literature the terms customer relationship management and relationship marketing are used interchangeably. As Nevin (1995) points out, these terms have been used to reflect a variety of themes and perspectives. Some of these themes offer a narrow functional marketing perspective while others offer a perspective that is broad and somewhat paradigmatic in approach and orientation. A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts (Bickert, 1992).Another narrow, yet relevant, viewpoint is to consider CRM only as seeking customer retention by using a variety of after marketing tactics that lead to customer bonding or staying in touch with the customer after a sale is made (Vavra, 1992). A more popular approach with the recent application of information technology is to focus on individual or one-to-one relationships with customers that integrate database knowledge with a long-term customer retention and growth strategy (Peppers & Rogers, 1993). Thus, Shani and Chalasani (1992) have defined relationship marketing as “an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for the mutual benefit of both sides, through interactive, individualized and value-added contacts over a long period of time” (p. 44). Jackson (1985) applies the individual account concept in industrial markets to suggest CRM to mean, “Marketing oriented toward strong, lasting relationships withAtul Parvatiyar & Jagdish N. Sheth4individual accounts” (p. 2). In other business contexts, Doyle and Roth (1992), O’Neal (1989), and Paul (1988) have proposed similar views of customer relationship management.McKenna (1991) has professed a more strategic view by putting the customer first and shifting the role of marketing from manipulating the customer (telling and selling) to genuine involvement with the customer (communicating and sharing knowledge). Berry (1995), in somewhat broader terms, also has a strategic viewpoint concerned with CRM. He has stressed that attracting new customers should be viewed only as an intermediate step in the marketing process and that developing closer relationship with these customers and turning them into loyal ones should be equally important aspects of marketing. Thus, he proposed that relationship marketing be seen as “attracting, maintaining, and – in multi-service organizations – enhancing customer relationships” (p. 25).Berry’s notion of customer relationship management resembles that of other scholars studying services marketing, such as Gronroos (1990), Gummesson (1987), and Levitt (1983). Although each one of them has espoused the value of interactions in marketing and its consequent impact on customer relationships, Gronroos and Gummesson take a broader perspective and advocate that relationships with customers be the focus and dominant paradigm of marketing. For example, Gronroos (1990) states: “Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises” (p. 138). The implication of Gronroos’ definition is that forming relationships with customers is the "raison de etre" of the firm and marketing should be devoted to building and enhancing such relationships. Similarly, Morgan and Hunt (1994) draw upon the distinction made between transactional exchanges and relational exchanges by Dwyer, Schurr, and Oh (1987) to suggest that relationship marketing “refers to all marketing activities directed toward establishing, developing, and maintaining successful relationships.”The core theme of all CRM and relationship marketing perspectives is its focus on a cooperative and collaborative relationship between the firm and its customers, and/or other marketing actors. Dwyer, Schurr, and Oh (1987) have characterized such cooperative relationships as being interdependent and long-term orientated rather than being concerned with short-term discrete transactions. The long-term orientation is oftenCustomer Relationship Management:5Emerging Practice, Process, and Disciplineemphasized because it is believed that marketing actors will not engage in opportunistic behavior if they have a long-term orientation and that such relationships will be anchored in mutual gains and cooperation (Ganesan, 1994).Another important facet of CRM is “customer selectivity.” As several research studies have shown, not all customers are equally profitable for an individual company (Storbacka, 2000). The company therefore must be selective in tailoring its program and marketing efforts by segmenting and selecting appropriate customers for individual marketing programs. In some cases, the “outsourcing of some customers” could be called for so that a company allocates its resources to those customers it can serve the best in order to create mutual value. However, the objective of a company is not really to prune its customer base but to identify the programs and methods that would be the most profitable as it creates value for the firm and the customer. Hence, our definition of CRM is thatCustomer Relationship Management is a comprehensive strategyand process of acquiring, retaining, and partnering with selectivecustomers to create superior value for the company and thecustomer. It involves the integration of marketing, sales, customerservice, and the supply-chain functions of the organization toachieve greater efficiencies and effectiveness in delivering customervalue.As is implicit in the above definition, the purpose of CRM is to improve marketing productivity. Marketing productivity is achieved by increasing marketing efficiency and by enhancing marketing effectiveness (Sheth & Sisodia, 1995). In CRM, marketing efficiency is achieved because cooperative and collaborative processes help in reducing transaction costs and overall development costs for the company. Two important processes of CRM include proactive customer business development and building partnering relationships with the most important customers. These lead to superior mutual value creation.3. The Emergence of CRM PracticeAs observed by Sheth and Parvatiyar (1995b), developing customer relationships has historical antecedents going back into the pre-industrial era. Much of it was due to direct interaction between producers of agriculturalAtul Parvatiyar & Jagdish N. Sheth6products and their consumers. Similarly, artisans often developed customized products for each customer. Such direct interaction led to relational bonding between the producer and the consumer. It was only after the advent of mass production in the industrial era and the advent of middlemen that interaction between producers and consumers became less frequent leading to transaction oriented marketing. In other words, the production and consumption functions became separated leading to the marketing functions being performed by middlemen, and middlemen, in general, are oriented towards economic aspects of buying since the largest cost is often the cost of the goods sold.In recent years however, several factors have contributed to the rapid development and evolution of CRM. These include the growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers to directly interact with end-customers. For example, in many industries such as the airline, banking, insurance, computer software, or household appliances industries and even consumables, the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular. Databases and direct marketing tools give these industries the means to individualize their marketing efforts. As a result, producers do not need the functions formerly performed by middlemen. Even consumers are willing to undertake some of the responsibilities of direct ordering, personal merchandising, and product use related services with little help from the producers. The recent success of on-line banking, Charles Schwab and Merryll Lynch’s on-line investment programs, direct selling of books, automobiles, insurance, etc., on the Internet all attest to the growing consumer interest in maintaining a direct relationship with marketers.The de-intermediation process and consequent prevalence of CRM is also due to the growth of the service economy. Since services are typically produced and delivered at the same institution, it minimizes the role of middlemen. Between the service provider and the service user an emotional bond also develops creating the need for maintaining and enhancing the relationship. It is therefore not difficult to see that CRM is important for scholars and practitioners of services marketing (Berry & Parsuraman, 1991; Bitner, 1995; Crosby & Stephens, 1987; Crosby, Evans, & Cowles, 1990; Gronroos, 1995).Customer Relationship Management:7Emerging Practice, Process, and DisciplineAnother force driving the adoption of CRM has been the total quality movement. When companies embraced the Total Quality Management (TQM) philosophy to improve quality and reduce costs, it became necessary to involve suppliers and customers in implementing the program at all levels of the value chain. This created the need for closer working relationships with customers, suppliers, and other members of the marketing infrastructure. Thus, several companies, such as Motorola, IBM, General Motors, Xerox, Ford, and Toyota, formed partnering relationships with suppliers and customers to practice TQM. Other programs such as "just-in-time" (JIT) supply and "materials-resource planning" (MRP) have also made use of interdependent relationships between suppliers and customers (Frazier, Spekman, & O’Neal, 1988).With the advent of digital technology and complex products, the systems selling approach has become common. This approach has emphasized the integration of parts, supplies, and the sale of services along with the individual capital equipment. Customers have liked the idea of systems integration and sellers have been able to sell augmented products and services to customers. Then, the popularity of system integration began to extend to consumer packaged goods as well as to services (Shapiro & Posner, 1979). At the same time some companies started to insist upon new purchasing approaches, such as national contracts and master purchasing agreements, forcing major vendors to develop key account management programs (Shapiro & Moriarty, 1980). These measures created intimacy and cooperation in the buyer-seller relationship. Instead of purchasing a product or service, customers were more interested in buying a relationship with a vendor. The key (or national) account management program designates account managers and account teams that assess the customer’s needs and then husband the selling company’s resources for the customer’s benefit. Such programs have led to the establishment of strategic partnering within the overall domain of customer relationship management (Anderson & Narus, 1991; Shapiro 1988).Similarly, in the current era of hyper-competition, marketers are forced to be more concerned with customer retention and loyalty (Dick & Basu, 1994; Reichheld, 1996). As several studies have indicated, retaining customers perhaps offers a more sustainable competitive advantage than acquiring new ones. What marketers are realizing is that it costs less to retain customers than to compete for new ones (Rosenberg & Czepiel, 1984). On the supply side it pays more to develop closer relationships with a fewAtul Parvatiyar & Jagdish N. Sheth8suppliers than to work with more vendors (Hayes, Wheelwright, & Clarke, 1988; Spekman, 1988). In addition, several marketers are concerned with keeping customers for life rather than with only making a one-time sale (Cannie & Caplin, 1991). There is greater opportunity for cross-selling and up-selling to a customer who is loyal and committed to the firm and its offerings. In a recent study, Naidu, Parvatiyar, Sheth, and Westgate (1999) found that relational intensity increased in hospitals facing a higher degree of competitive intensity.Also, customer expectations have been changing rapidly over the last two decades. Fueled by new technology and the growing availability of advanced product features and services, customer expectations are changing almost on a daily basis. Consumers are less willing to make compromises or trade-offs in product and service quality. In a world of ever changing customer expectations, building cooperative and collaborative relationships with customers seems to be the most prudent way to keep track of their changing expectations and appropriately influencing them (Sheth & Sisodia, 1995).Finally, many large internationally oriented companies are today trying to become global by integrating their worldwide operations. To achieve this they are seeking cooperative and collaborative solutions for global operations from their vendors instead of merely engaging in transactional activities with them. Such customers' needs make it imperative for marketers interested in the business of companies that are global to adopt CRM programs, particularly global account management programs (Yip & Madsen 1996). Global account management (GAM) is conceptually similar to national account management programs except that they have to be global in scope and thus more complex. Managing customer relationships around the world calls for external and internal partnering activities, including partnering across a firm’s worldwide organization.4. A CRM Process FrameworkSeveral scholars studying buyer-seller relationships have proposed relationship development process models (Borys & Jemison, 1989; Dwyer, Schurr, & Oh, 1987; Evans & Laskin, 1994; Heide, 1994; Wilson, 1995). Building on that work we develop a four-stage CRM process framework comprised of the following four sub-processes: a customer relationship formation process; a relationship management and governance process; a relational performance evaluation process, and a CRM evolution orCustomer Relationship Management:9Emerging Practice, Process, and Disciplineenhancement process. Figure 1 depicts the important components of theThe CRM Formation ProcessThe formation process of CRM refers to the decisions regarding initiation of relational activities for a firm with respect to a specific group of customers or to an individual customer with whom the company wishes to engage in a cooperative or collaborative relationship. Hence, it is important that a company be able to identify and differentiate individual customers. In the formation process, there are three important decision areas: defining the purpose (or objectives) of engaging in CRM; selecting parties (or customer partners) for appropriate CRM programs; and developing programs (or relational activity schemes) for relationship engagement with the customer.The Purpose of CRM and Its Operational Goals. The overall purpose of CRM is to improve marketing productivity and to enhance mutual value forAtul Parvatiyar & Jagdish N. Sheth10the parties involved in the relationship. Improving marketing productivity and creating mutual values can be achieved by increasing marketing efficiencies and/or enhancing marketing effectiveness (Sheth & Parvatiyar, 1995a; Sheth & Sisodia, 1995). By seeking and achieving such operational goals as lower distribution costs, streamlining order processing and inventory management, reducing the burden of excessive customer acquisition costs, and by considering the economics of customer retention, firms can achieve greater marketing efficiencies. They can also enhance marketing effectiveness by carefully selecting customers for their various programs, by individualizing and personalizing their market offerings to anticipate and serve the emerging needs of individual customers, by building customer loyalty and commitment; by partnering to enter new markets and develop new products, and by redefining the competitive playing field for their company (Sheth & Parvatiyar, 1995a). Thus, stating the objectives and defining the purpose of CRM in a company helps clarify the nature of the CRM programs and activities that ought to be performed by the partners. Defining the purpose also makes identifying the relationship partners with the necessary expectations and capabilities to fulfill mutual goals an easier task. Furthermore, it helps in the evaluation of the CRM performance. The results achieved can be compared to the objectives. These objectives can be specified as financial goals, marketing goals, strategic goals, operational goals, and organizational goals.Similarly, in the mass-market context, consumers expect to fulfill their goals related to efficiencies and effectiveness in their purchase and consumption behavior. Sheth and Parvatiyar (1995a) contend that consumers are motivated to engage in relational behavior because of the psychological and sociological benefits associated with reduction in choice decisions. In addition, to their natural inclination to reduce choices, consumers are motivated to seek the rewards and associated benefits offered by CRM programs.Relational Parties and Partners. Customer partner selection (or parties with whom to engage in cooperative or collaborative relationships) is another important decision in the relationship formation stage. Even though a company may serve all customer types, few have the necessary resources and commitment to establish CRM programs for all. Therefore, in the initial phase, companies have to decide on which customer types and specific customers or customer groups to focus their CRM efforts on. Subsequently, when a company gains experience and achieves successful results, the scopeEmerging Practice, Process, and Disciplineof CRM activities can be expanded to include other customers in the program or to include additional programs (Shah, 1997).Although partner selection is an important decision in achieving CRM goals, not all companies have a formalized process of selecting customer partners. Some select customer partners by following the intuitive judgments of their senior managers and select other partners from those customers who demand to be selected. On the other hand, other companies do have formalized processes of selecting relational partners through the use of extensive research and the evaluation of chosen criteria. The criteria for partner selection vary according to company goals and policies. They can range from a single criterion such as the revenue potential of the customer to multiple criteria that include variables such as customer commitment, resourcefulness, management values, technological and market leadership, national and global presence, strategic value, and complementary business processes. When several criteria are applied and a complex model developed, it is necessary to test its validity based on strategic fit and the distinctive competitive advantage to the firm.CRM Programs and Strategies. A careful review of the literature and the observation of corporate practices suggest that there are several types of CRM programs. Broadly specified, they fall into the following three categories: continuity marketing, one-to-one marketing, and partnering programs. Each one of these can take different forms depending on whether they are meant for end-consumers, distributor customers, or business-to-business customers (see Parvatiyar & Sheth, 2000).Obviously, marketing practitioners in search of new creative ideas are able to develop many variations and combinations of CRM programs to build mutually beneficial relationships with their customers. However, the essence of CRM programs is customer selectivity (Sheth & Sisodia, 1995). It has now become common knowledge that the value of all customers is not equal. The 80/20 rule prevails whereby we have learned that 20 percent of customers generate more than 80 percent of revenues for most companies, and it is not uncommon to find that an even lower percentage of customers can generate more than 80 to 90 percent of the revenues. Under such circumstances, it is not prudent for a company to allocate equal resources to all customers. Customer segmentation and program differentiation is needed in order to match revenue potential with service offerings. Those with higher revenue potential deserve a greater allocation of costs and service.Otherwise, competitors will seize the opportunity by offering better service and a greater allocation of resources for the high-end customers. At the lower-end, attempts should be made to achieve cost savings through the re-allocation of efforts based on less-expensive resources.Figure 2 depicts the customer revenue-cost re-allocation opportunity zone. It suggests that in most companies instead of the average cost per customer being proportionate to the average revenue per customer, one consider a flat cost curve that is not sensitive to the revenue produced by the customer. Such a situation opens up an opportunity for competitors to increase their offerings by allocating expensive resources to the high-end customers. Thus, as shown in Figure 3, a hierarchy of CRM programs could be considered for different customer groups based on the extent of serviceEmerging Practice, Process, and DisciplineThe CRM Governance ProcessOnce a CRM program is developed and rolled out, the program as well as the individual relationships must be managed and governed. For mass-market customers, the degree to which there is symmetry or asymmetry in the primary responsibility for whether the customer or the program sponsoring company will be managing the relationship varies with the size of the market. However, for programs directed at distributors and business customers the management of the relationship would require the involvement of both parties. The degree to which these governance responsibilities are shared or managed independently will depend on the perception of the norms of the governance processes among the relational partners given the nature of their CRM program and the purpose of engaging in the relationship. Not all relationships are or should be managed alike. In fact, several studies suggest appropriate governance norms for different。