Jan 12, 2018 in Analysis

Summary Paper

Customer relationship management is an important aspect of a business that may determine the success of a business. Customer relationship management involves a company getting information about their customers and the companies can use the information to develop a customer based marketing strategy which will ensure promotional activities that are effective. Customer relationship management also leads to personal relationship between a customer and a company and the relationship leads to loyalty and more close exchange of information meaning that the company can easily change the product to adapt to the specific requirements of the customers. The type of management program also leads to fed off competition due to customers gaining faith in the brand of a business. Customer relationship management helps a business to identify customers who are most profitable and the business may develop a strategy to serve those types of customers to ensure maximum profits. However, the success of a customer relationship management process requires dedication of employees and the high management to ensure its effectiveness and follow up.

Many companies have started developing customer loyalty schemes that help to reward customers that are loyal to the companies. There are many types of schemes that a company may employ to measure the loyalty of the customers and the companies use the basis of consumer behavior to identify the best scheme to use. Examples of such schemes include a points system and a company forming a partnership with another company to reward the customers accordingly. In the points system, the more the customer buys the products or services of a company, the more points the customer earns and once the points reach a certain amount, the company then rewards the employee. Partnering with another company means that a business collaborates with other firms to reward the customers together. However, in partnering with other businesses, the companies must have some similarity in trms of the operations or products and services.

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