Database Reference
In-Depth Information
Chapter 1
the Relationship-Based
enterprise
Customer Relationship Management (CRM) is a holistic approach to identifying, attracting, and
retaining customers. CRM deals with creating a customer-centric enterprise. This involves two
major aspects: customer centricity and customer responsiveness. All activities must eventually
add value to the customer reflected in their willingness to pay for the products and/or services;
non-value-adding elements should be excised swiftly in Internet time because customers have
numerous other choices. This entails focusing all strategies, plans, and actions on the customer
rather than the traditional focus on the products and/or services. As originally proposed by Fred
Reichheld,
it is a question of transitioning from zero defects to zero defections
.
Additionally, enterprises must ensure seamless and real-time integration between
◾
Customer-facing demand generating
◾
Back-end demand fulfilling intra- or inter enterprise supply chain processes
An effective CRM strategy aims at achieving the following:
◾
Continuously attract new customers
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Gain customer insight and manage intimacy
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Retain profitable customers and phase-out nonprofitable customers
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Establish long-term relationships with current customers
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Increase the customer spend and profits by cross selling and up-selling
his topic takes a stance that customers are not the exclusive preserve of the marketing function,
but are the key to an enterprise's enduring and compounding competitiveness and success.
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