ASSIGNMENT CUSTOMER RELATIONSHIP MANAGEMENT SIMRANJEET SINGH 300703124 ECOM241-101 Q1. How do you define CRM? Customer relationship management means to maintain relationship with existing and new customer but understand the customer satisfaction. Everything that done to maintain relationship by use of technology and strategies. Q2. What makes CRM the preferred approach to marketing in the Information Age?
CRM became a preferred approach to marketing in the information age because of the two reasons:- A) Media dilution As media have interfered in the marketing area where they focus the customer alone which directly impact an organisation as CRM helps to know the customer satisfaction level. B) Multiple communication channels There are more communication channels that helps to know what customer want and new channel that focus customer directly. So these are the two ways that CRM is became preferred approach in marketing. Q. What is the distinction between traditional database marketing and a customer-value-based approach toward database marketing? Distinction in tradition and customer value based approach is following:- 1. In tradition there is basic information and in customer valued based integrated information about the customer is there. 2. The first uses the available data to use but in customer valued based it takes account the every channel information. 3. Tradition approach takes overall marketing of the area but customer valued based personalize the product and services of each customer expectation. . Customer valued based automatically generate new sales opportunities but tradition approach doesn’t. 5. Tradition approach give lead which is not accurate but customer valued based give accurate and up to date of the customer requirement lead. 6. Customer valued based automatically adapt to changing business environment as tradition don’t adapt. Q. 4 What are the key changes in the business environment? Why are these changes driving the shift from product-based marketing to customer-based marketing? The major key changes in the business environment are following;- 1.
Decreasing customer satisfaction level. In recent time’s customer are more knowledgeable in the product they choose. 2. Diversity of the customer This point is main as customer are from diverse culture as there requirement are different some product may be used in some part but not in every part. 3. Value consciousness Customer is becoming conscious of their product and services. 4. Decreasing service levels Customer service level is decreased in recent time so they are more concerned and more focused their product choice. 5. More information of the product.
More information is available to the customer due to various channels that helped to gain information regarding the product. These changes lead to product based marketing to the customer based marketing as customer is now more conscious of the service and product. As every customer are diverse so the customer based marketing is needed to understand the customer product choice. All above factors have lead to changed to customer based marketing as customer is knowledgeable and understand the market. Q. 5 Do call centers in general improve customer satisfaction?
Are customers increasingly accepting the use of call centers and the Internet as the only available interfaces with the firm? Can the success of companies like Dell be attributed to this? Yes i think so as call centres are 24/7 and they are available if any query related to product occurred so customer can call anytime. This helps in improve customer satisfaction as they can solve problem anytime. Customer is increasingly accepting call centers as they help to solve problem quickly and they don’t need to go anywhere.
In modern world internet are the only available interfaces with the firms as they can manage customer online without much cost and to understand the needs of the customer. Dell made internet a source as they assembles computer as customer want. Anywhere in the world customer can choose its type of the computer which help to increase customer satisfaction level and also to understand the customer requirement. Dell made success by this only as they can solve any query through there 24/7 calls centers. Dell and many other companies have made success using this technique.