“ 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 fulfilment of promises.” (Gronroos 1994, J of Marketing Management)
“ Research into the marketing planning practices of many retail companies has shown it to be an area of major weakness.” (Retail Marketing Plans, McDonald and Tideman, (1993)
‘ The concept of CRM focuses the organisation on the customer. It is an enterprise approach to understanding and influencing customer behaviour through meaningful communications in order to improve customer acquisition, customer retention, customer loyalty and customer profitability’ (Sturdy 2001 cited in Kent & Omar 2003)
The goal is to increase sales opportunities by improving the process of communication with each customer with a targeted service, offer (product and price) and distribution channel whenever the customer wants it.
Critical success factors for successful CRM (a)
Design the customer experience
Do not see the customer as ‘outside’
Live by explicit values
Dare to be different; develop an innovative customer-centred culture that stands out from the competition
Critical success factors for successful CRM (b)
Learn from customers and let them learn from each other
Treat work as ‘serious fun’
Invert and flatten the organisational pyramid
Put customers second (or even third): satisfied customers lead on from satisfied suppliers and employees
(Customer Relationship Management, March 2001, p29-32)
Customer retention (a major preoccupation of retailers, McGoldrick)
This week’s seminar exercise is research based – find articles (minimum 6) and examples of retailers who have loyalty schemes but also offer discounts separately from these schemes. We will discuss this in next week’s forum.
There is no discussion forum this week – attendance marks will be gained by students who access Moodle at any time before next week’s lecture.