In this time of modernization and technical advancement one must be together with the game to achieve a competitive business market. Also to accomplish this task a firm do not need to only produce high quality products but also effectively cope with customer questions and problems, which results in maintaining good customer relationship. Two different kinds of marketing strategies have been reviewed here. Transactional marketing which centers only on individual transactions and gives no importance for customer relationship. Alternatively, Relationship Marketing gives top most importance for building long-term customer relationships and concentrates on customer satisfaction. Dissimilarities between these two approaches have been provided for better understanding of the concepts. Detailed review has been done on customer marriage management techniques, how it is beneficial for the organisation, etc. In the end, we will be discussing the best practices accompanied by ICICI Bank Ltd, a successful and leading company in the banking industry.
Transactional Marketing is a normal marketing procedure that concentrates only on individual deals. It mainly focuses on the single sales formula, forcing the
sales through mass marketing and promotions of the merchandise. It is based on short period of energy, with little or no emphasis on customer support. It really is a theory that includes low-price competition, cost slicing, promotion, profits on return etc. In addition they believe they can gain market share with only price and customer loyalty is not a major factor.
Effective use of the internet helps them to attain customers in an inexpensive manner. Transactional Marketing is done by the purchase of consumer information in the form of databases. The company then reaches the consumer by telemarketing, mass e-mailing and other promotional activities. It isn't very popular currently as there is no post sales consulting or service.
Example: A telemarketer who's given commission for every single successful sale. He / she tries to persuade the client to choose the product by describing the top features of the merchandise, and then never make contact with the customer after closing the sales.
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In simple words, we can say that "Transactional Marketing targets maximizing the earnings of the company by getting more customers to acquire the firm's product. "
Relationship marketing can be involved with producing and strengthening the partnership with both current and possible customers. It really is more focused on providing the appreciated products and services to the customers rather than advertisement and advertising. It is different from other marketing techniques as it aspires to value the long-term romance and customer's contribution towards the business enterprise. The primary emphasis will be on retention of existing customers for the long-term benefits of the company, not on attracting new customers on a regular basis. This gives the organization a competitive gain over its rivals.
The biggest menace every company face is worries that their customers could switch to its competition. But, if a business practices a good marriage strategy, their customers are less inclined to swap to the competitors. Today, companies try their best to develop long term romance with the customers, that will lower the cost of getting new ones. This ongoing process of building and creating new principles with specific customers, and showing life span benefits with them is essential and very very important to the organisation since it creates the sense of loyalty in customers and long-term profit for the business. Customer loyalty, specifically to a small business is the key to company's survival.
Example: In banking industry, it is vital to maintain a very good relationship with the customers. More volume of happy customers can help in conditions of broadening customer base, which will bring about more revenue and getting competitive border over others on the market.
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Short time scale
Long time scale
Focus on solitary sale
Focus on retention of the customer
No importance to customer service
Top top priority for customer service
Orientation to product features
Orientation to customer values
Limited dedication towards customers
Higher determination towards customers
Focus on product quality while production
Ensure product quality in every aspects
No post deal consulting or services
Follow up after sales to ensure customer satisfaction
Mechanical and production focused business model
More humanistic and romance based mostly business model
In bottom line, we can say that Relationship Marketing is a more affordable strategy in terms of the company's budget as it focuses on current customers and possible clients rather than blindly looking for people who may have no interest in the product or services proposed by the company.
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Customer Romantic relationship Management (CRM) is a comprehensive approach for creating, preserving and broadening customer relationships. A fantastic customer marriage management is at the heart of each business success. With CRM, you will easily understand customer requirements, meet those needs effectively, predict market movements and enhance your bottom line. A good CRM will help the business to become better and effective.
CRM is the tactical use of Information, operations, technology and people to control the customer's relationship with your small business (Marketing, sales, services and support) over the entire customer life pattern. CRM can help the business to boost customer satisfaction, increase staff production, slash functional costs and boost the effectiveness of each customer relationship.
CRM programs enhance the customer-friendly services by automating all proceedings and strategies in a company. All CRM systems are mainly large customer directories capable of keeping all customer information such as customer's name, address, customer contacting method, capacity to spend money on products, money spending per visit etc. The precise programs built-in these systems assimilate the stored data on demand to recognize good customers and help to create better service ideas to them.
The finest CRM system chiefly computerizes the client service process and also helps it be more experienced and user-friendly. Customers can very easily get around their way to the precise information, so that personal exchanges such as calls, emails can be placed away for, out of the ordinary situations.
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The key to focusing on new customers is relatively straight forward, keeping them is another thing altogether, and this is where good customer service takes on an important role. Taking all the attempts to keep a customer happy, will vastly improve the likelihood of them returning with their custom in the foreseeable future.
Effective CRM is central to any successful business. In short, it's the process a firm follows to monitor and organise its current customer foundation. If implemented effectively, a all natural CRM approach can help businesses of most sizes to make smarter educated marketing decisions, offer better customer support and support and, finally, create shorter sales cycles.
CRM software permits companies to proactively create sales that normally might not have took place. And finally, the long-term success of any business will be based upon the potency of their overall customer marriage management strategy.
Success of any business - small, medium or large - greatly is determined by client satisfaction and the way in which in which an organization makes endeavors to cater to customer requirements and enhance customer relationships. It really is herein that the concept of CRM becomes essential to win customers and sustain their expansion.
Customer Satisfaction: Using CRM, marketing, providing and servicing your customers will be organized and systematic. As every customer discussion is done in a regular way, your business exceeds customer's anticipations. A well-implemented CRM increase customer satisfaction. A PERSON Relationship Management for your organization is an advisable investment and a smart solution to keep business stay competitive. Today, CRM programs have become the very best tools for many marketing and service providing companies to improve their customer satisfaction.
Increased Revenue: CRM will result to shorter sales cycles because of reliable management of accounts and purchases. This will obviously encourage business growth and permanent profitability as the number of customers increase and opportunities are maximized. Within the slash throat environment of modern times, a CRM system then emerges as a valuable tool to help build customer commitment. CRM as the acronym suggests is all about managing the customer. If the client is monitored in an effective manner, the earnings on a continuing basis is the rational by-product. A business can generate earnings only when it has a dedicated and faithful following of customers.
It will not matter whether your business is small, or you are jogging a huge business, the durability of your business relays on the information you acquire about your customer. Earnings can be maximized first of all on a extended basis with keeping satisfied customers. It could be done only through an individual touch. This personal touch can be guaranteed through keeping a databases on the needs and preferences of your customers. Building a romantic relationship of trust and understanding by knowing their needs and needs will help you and your customer create a long term romantic relationship, or more notably, partnership.
Reduced costs: By using CRM, work and activities become organized and coordinated. This will likely eliminate waste products of money and brings about reduced labour costs. CRM solution providers bring in healthy solutions to enable companies to better serve their customers and acknowledge their target customers, manage marketing campaigns and generate quality leads for the sales team. Statistics show that expenditure is much higher in acquiring a new customer than to preserve a preexisting one. This is guaranteed by keeping a data source on certain requirements of your customers. CRM system allows you to have an improved grip on your visitors. Therefore saves lots of time and money in doing so by being doubly more good for your concern than other similar system.
CRM is a powerful tool for taking the business ahead as it helps to evaluate the business's customer platform and take care of their customer data successfully and effectively. It is necessary to have a proper planning and a tactical device to extend their footprint as well as sustain their old customers, while also receiving new clients; CRM becomes important in the current situation. CRM also helps businesses to simplify sales and marketing processes, while also lowering costs.
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The main purpose of CRM is to keep up a better understanding of the customer requirements and manage customer relationship through the utilization of software, Web-based integration of business procedures and methodologies. Besides, CRM program offers a swift system to keep an eye on all contact points between a client and the company, thereby reducing the complications of managing customer complaints.
Best customers, allow you to earn your acquisition cost and create a positive profits on return. The longer you retain them, the more positive your earnings will be.
Loyal customers will buy more things from you. They don't have to be sold as hard because they understand your value proposition and, since they have a marriage along with you, they will see your marketing, which raises revenue and profit, and reduces acquisition cost.
Loyal customers can pay an increased price. They understand your product and discover its value. You don't have to bribe these to buy again. This further increases the profitability of the business.
Experienced customers cost a lower amount to service. Because they know how your service or product works. All this reduces your cost, which boosts profitability.
Loyal customers will happily notify their friends and affiliates about your product. This brings in more great customers with no acquisition cost.
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This view of CRM completely changed the functions of the organisations. Companies became more worried about keeping the prevailing customer than looking for new ones. This new sizing of marketing improved the entire methodology, companies transformed their marketing strategies, and every customer is different than other, so each is being treated differently. Different CRM strategies are being used by the firms, which allow them to identify their finest customers, try to satisfy their needs and constantly increase their degree of satisfaction and take them up to the commitment level.
CRM has influenced the marketing of the company in a way it made organisations to change all its marketing strategies and functions. CRM established organisations are concerned about the clients. Organisations now attempt to identify the characteristics of the greatest customers, estimate their lifetime value, and are changing their marketing strategies consequently. CRM system is mostly technology founded, and it impacts the customers' behaviour a lot, if it's not integrated properly.
CRM has an enormous effect on marketing of the organization. It includes almost shifted the target from mass marketing to specific customer. Managing each customer marriage is the heart and soul of CRM, while traditional market metrics rarely allowed the firms to make operational decisions that affect individual customers. CRM helped the organizations to improve its mass marketing and marketing campaign steps. These retention campaigns are expensive but it is rather effective in longer run. Furthermore, having a normal clientele also alleviates most of the pressure that comes with continuously needing to target clients, which isn't only costly and frustrating, but there is no warranty how much earnings any new marketing initiative will create.
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By having access to customers' detailed buying history, it is possible to offer related products and services. Known as 'cross-selling', this is an extremely effective method of generating additional income. Then you can find what is known as 'up-selling', which is where the customer is motivated to buy upgrades or add-ons at the point of deal. Traditional marketing approach was more centered on the sales while CRM has a view of long-term relationship with the customers. This idea of retaining the customers made huge changes within the organizations and evolved its marketing and functions.
Organisations began building and maintaining directories of the customers' information. CRM made businesses more mindful about customer services, acquiring and providing the clients, increasing their value towards the company, keeping good customers and determining which customer should be maintained or given a higher degree of services.
Businesses today put a whole lot of work on analysing the purchasing behavior of the customer; they manage several directories where they keep information of each customer. According to the information each customer is targeted independently. Different schemes and campaigns are organization by the business to wthhold the customers. These techniques include different marketing promotions to create a sense of loyalty among the customer. Like different newspaper publishers give a free backup to its regular customers.
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A CRM system could run better if the company hold the right employees, who have understanding of the CRM system, so organisations will have to spend more on training the employees and make them aware of the machine. CRM system is pretty much technology based so certain tools should be improved continuously like WEBPAGES. Organisations now tend to make databases of the customers, which have increased the responsibility because this process of one-to-one marketing and customer loyalty expects a great deal.
With the execution of CRM system in the organizations, their marketing strategies seemed to be customer centric (striving to create the client loyalty alternatively than making new customer each time) and focus is being directed at One-to-one marketing, alternatively than mass marketing. Today, organisations are definitely more customer centric. In simple worlds corporation makes certain that its customers could easily contact it. The very best example of customer centric group could be Amazon. com. They have got personalized webpages with wide selection of products to choose, the reduced price business lead towards the customer loyalty and a long-term romantic relationship of Amazon. com.
One-to-one Marketing: It is also portrayed as 1:1 Marketing. From the CRM strategy which emphasis on personalized connection with customers. It really is thought that this personalized connections will expand customer loyalty and will give an improved go back on the marketing opportunities. This one-to-one marketing term could be new however the approach is quite old. And it's been occurring since the commerce came into existence. For example: who owns a grocery store would naturally take this one-to-one way while interacting with customers, i. e. keeping in mind the customer details about their preferences and their characteristics and ultimately providing the assistance based on that knowledge.
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In Finish, we can say that CRM has given group great benefits in terms of improved marketing methods, customer retention, a rise in the market show and an analysis of customer profitability. CRM supplies the company with a sustainable competitive gain. CRM is the detailed approach of fabricating and maintaining permanent relationships. This one to-one marketing way has impacted a whole lot on different aspects of the organization; this is more technology-based method of stay in touch with customers, trying to make sure they are loyal with the business. Because of this relation maintaining methodology, companies have also affected in conditions of these marketing strategies, and their operations. Companies have to improve all of their previous strategies and begin working on this new strategy.
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CRM at ICICI consists of increased communication between the bank and the clients. ICICI believes a true customer-centric romance can only just be achieved by taking into consideration the unique perspectives of every one customer. ICICI also thinks in one to just one online marketing strategy by checking complete customer life-cycle background. Effective use of Mix Selling technique helped the lender in terms of creating more earnings.
Business Emphasis: There are various the different parts of CRM like customer information, sales, marketing developments and marketing efficiency that acted in tandem to improve romantic relationship between ICICI and its own consumers. ICICI captured customer data and examined them while interacting with customers at these very touch tips. A CRM solution from Siebel was applied for the automation of customer handling in all key retail products of the Group. The solution allows customer support agents to keep track of all customer problems and requests. It also allows target setting up and centralized tracking of turnaround times for need fulfilment. The lender has also undertaken a retail data warehouse effort to achieve customer integration at the back-office. This central view of the total customer relationship has been used extensively for discovering opportunities to cross-sell services and services to the existing customer basic.
Technology Target: ICICI Loan provider is constantly on the leverage information and computer technology as a tactical tool because of its business operations to gain competitive benefits. Its technology strategy stresses enhanced degree of customer services through 24x7 availableness, multi-channel banking and in a straight line through control, and cost efficiency through maximum use of digital stations, wider and focused market reach and opportunities for cross-selling. The Technology Management Group (TMG) is the focal point for the ICICI Group's technology strategy and Group-wide technology initiatives. This group studies right to the Managing Director & CEO. An integral to ICICI's success has been its capacity to funnel business information to CRM initiatives which have fuelled growth and helped entice more than 30 million customers.
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Organisations need to comprehend their customers in order to truly have a marriage with them. ICICI comprehends every individual and provide products and services predicated on their learning.
In a customer-focused world, Organizations are more and more expanding products and services, and even new stations predicated on customer needs and service expectations. ICICI feels that the scope of customization should be predicated on the potential value provided by the customer segment.
ICICI is firmly of the thoughts and opinions that value is not only based on the price tag on the product or the discount rates offered, but are based on lots of factors like the quality of products and services, convenience, swiftness, simplicity, responsiveness, and service brilliance.
The more ICICI learns about customers, the easier it is to pinpoint those that are producing the best value for the organization. They try to continue to find out more about each customer segment and put it to use for successful customer retention. As ICICI goes step further in CRM they expects to gain understanding and knowing that enhance the succeeding work. Successful customer retention is dependant on the organization's ability to constantly deliver the best services to its customers.
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We can say that ICICI Loan provider has achieved this level by means of focussed and customer centric procedure using various customer romance management techniques. CRM plays a essential role for organisation's expansion and success. Effective use of the latest and proven CRM techniques will help organisations to be competitive in this changing world.
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