Customer Relationship Marketing

Customer Relationship Marketing (CRM) is a business

process in which client relationships, customer loyalty and
brand value are built through marketing strategies and
activities.
CRM allows businesses to develop long-term relationships
with established and new customers while helping
streamline corporate performance.
It is the process of carefully managing detailed information
about individual customers and all customer “touch
points” to maximise loyalty.
Evolution of Customers Relationship
Marketing
Period Focus area
1950’s Customer Good Marketing
1960’s Industrial Goods Marketing
1970’s Marketing of Non-Profit
Organization or Societal
Marketing
1980’s Services Marketing
1990’s Customers Relations Marketing
 Basis of CRM
 It requires building and maintaining long term
relationship between buyers and sellers.
 It is based on trust and commitment between the two
parties.
 Emphasis is on retaining the customers over making sales.
 CRM ranks customer service as a high priority.
 It encourages frequent customer contact.
 Fosters customer commitment with the firm.
 Bases customer interaction on cooperation and trust.
 Building loyalty:-
1. Interacting with customers
2. Developing loyalty programs:
 Frequency programs
 Club membership programs
3. Creating institutional ties
Goals Of Relationship Marketing
The goal of customer relationship marketing are:
1) Customer Acquisition
2) Customer Satisfaction
3) Retention of the customers
4) Enhancing the customer base
 Benefits of Relationship
Marketing
• Benefits for Customers:
• Receipt of greater value
• Confidence benefits: • Social benefits:
• trust • familiarity

• confidencein provider • social support

• reduced anxiety • personal relationships
• Special treatment benefits:
• special deals
• price breaks
 Benefits of Relationship
Marketing Contd.
• Benefits for Firms:
• Human resource management
• Economic benefits:
benefits:
• increased revenues
• easier jobs for employees
• reduced marketing and
• social benefits for employees
administrative cost
• employee retention
• regular revenue stream

• Customer behavior benefits:

• strong word-of-mouth endorsements
• customer voluntary performance
• social benefits to other customers
• mentors to other customers
• eCRM- describes the broad range of technologies used to
support a company’s CRM strategy.
• arises from the consolidation of traditional CRM with the e-
business applications marketplace.
• Development in the field of information and communication
technology has increase the scope of CRM implementation in
business Organizations, which leads to the rising of E-CRM
concept.
• eCRM will help to improve customer acquisition, customer
development and customer retention.
• E-mail and automated response considered as one of the
important components of E-CRM.
 Increased customer loyalty
 Effective marketing
 Improved customer service and
support
 Greater efficiency and cost reduction
Type Public
Headquartered Seattle, Washington
Industry Coffee shop
Products Coffee beverages,
smoothies, tea, baked goods
and sandwiches
Revenue 19.16 billion ( 2015)
No of locations 24464
• Meet your customers where
they want to be met
• Think mobile mobile mobile
• Focus on personalization
• Starbucks is offering convenient purchase option through smartphone mobile apps
• Purchasing is made by Starbucks mobile app with the use of a scanner. Customers
can reload balance through Paypal
• Starbucks developed and implemented an iphone and android mobile application
called “ starbucks card mobile application” for customers in the United States.
• Feature of the app allows customers to generate a 2D barcode on their mobile
device to be scanned and used as a payment in stores. It referred to the app “ the
fastest way to pay”.
• To increase the perceived benefits on the customers side, starbucks enables
customers to receive rewards for the usage of mobile application by receiving a free
coffee after a certain amount of purchases via card.
• It is improving its core service by making it more convenient for customers to
purchase their coffee( perceived service quality, perceived value).
• It is also maintaining relationship bonds because the app utilizes the volume and
frequency rewards in reward card feature.
Case Study of Volkswagen India
Background
 Volkswagen (VW) is one of the world’s leading automobile
manufacturers and the largest carmaker in Europe. As
Volkswagen pursues its goal of becoming the number one
automaker in the world by 2018, India has become a key
component of its strateg y. India is currently the world’s
second fastest growing car market, with shipments
expected to more than double by 2018.
CRM Practice -1 “Attracting Working
Professionals”
 Challenge
• Create brand awareness among working
professionals
• Build loyalty and aspiration
• Inf luence decision-making
 Solution
• Establish VW-branded Company Page on LinkedIn
• Enable LinkedIn members to recommend their
favorite VW models
• Use LinkedIn Recommendation Ads to extend reach
CRM Practice -1 “Attracting Working
Professionals”
 Why LinkedIn?
• #1 Resource for career-minded professionals
• Precise targeting by seniority and geography ensures
match with affordability criteria, dealership
locations
 Results
• 2,700 product recommendations in 30 days
• 2,300 new followers on VW India Company Page
• 960,000 viral updates about VW car models
CRM Practice -2 “Made In India”
 Challenge: To foray into the small car segment
 Solution: The campaign created by DDB Mudra and
executed by MediaCom, clearly displayed the made in
India factor in the Polo which is rolling out of the Chakan
plant in Pune.
CRM Practice -3 “India Assistance
Program”
The services that this program will offer to their passengers
will be:
 Travel and accommodation of the passengers in the
incidence of immobilization or theft of the vehicle.
 Transport to destination or habitual residence with luggage
and personal belongings.
 Towing of the vehicle to VW nearest dealer.
 On site repair, if possible.
 Dispatch of fuel; Wheel replacement.
 Transportation, storage and safekeeping of the vehicle.
CRM Practice -4 “Planet Volkswagen”
 A new digital campaign, like most of its other initiatives,
it is rich in creativity and ideas. It features a rotating
globe with different land masses for each of Volkswagen
India’s departments.
 Since the brand is not very old but has caught on quickly
with Indian people, many want to learn the heritage,
technology and German company’s background.
 There’s a Junior section targeted at kids who Volkswagen
see as future customers.