Customer value is what the customer desire, believe and expect from the product they purchase. They prefer the product that they perceive to have the greatest value over what they are paying, may it be physical or emotional value. Customer value more specifically comprised of quality, service and price. It has a direct correlation with quality and service and negative correlation with price meaning that the value rises with increase in quality and service and decrease with the rise in price. (Kotler & Kellar, 2012)
Customer relationship marketing (CRM) is concerned with creating long term relation with various business stakeholders such as customers, vendors, suppliers, financial communities and bankers. It is a part of holistic marketing which implies that everything matters in marketing. As the name suggests this marketing strategy prefers to create a long term relation with the customers by gaining their loyalty rather than a one time dealing by catering to their needs. Most firms target new customers but disregard them after sales. But there is a catch in CRM. To increase profit, CRM analyses and targets those segment of customers that have potential to give more profit and cater services specifically for them. Try and sell more products to the same customer is the name of the game. It is all about creating a strong network with stakeholders that bring profit into the company. Cross selling is one way how firms can bring profit. "Banks fail to treat phone and email interactions as potential sales opportunities, rather than pure service channels-thereby losing the opportunity to convert customer inquiries into sales by offering the customer cross sell recommendations. (Fatma, 2014)”
In this way relationship marketing can bring in profit into the company.
Reference
Fatma, S. (2014). CUSTOMER RELATIONSHIP MANAGEMENT: THE STUDY OF CUSTOMER PERSPECTIVES ON RETAIL BANKS IN INDIA. International Journal of Management Research and Reviews; Meerut , 27-38.
Kotler, P., & Kellar, K. L. (2012). Purhase decision. In K. L. Philip Koter, Marketing Management (pp. 170-171). New Jersey: Prentice Hall.
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Customer value is what the customer desire, believe and expect from the product they purchase. They prefer the product that they perceive to have the greatest value over what they are paying, may it be physical or emotional value. Customer value more specifically comprised of quality, service and price. It has a direct correlation with quality and service and negative correlation with price meaning that the value rises with increase in quality and service and decrease with the rise in price. (Kotler & Kellar, 2012)
Customer relationship marketing (CRM) is concerned with creating long term relation with various business stakeholders such as customers, vendors, suppliers, financial communities and bankers. It is a part of holistic marketing which implies that everything matters in marketing. As the name suggests this marketing strategy prefers to create a long term relation with the customers by gaining their loyalty rather than a one time dealing by catering to their needs. Most firms target new customers but disregard them after sales. But there is a catch in CRM. To increase profit, CRM analyses and targets those segment of customers that have potential to give more profit and cater services specifically for them. Try and sell more products to the same customer is the name of the game. It is all about creating a strong network with stakeholders that bring profit into the company. Cross selling is one way how firms can bring profit. "Banks fail to treat phone and email interactions as potential sales opportunities, rather than pure service channels-thereby losing the opportunity to convert customer inquiries into sales by offering the customer cross sell recommendations. (Fatma, 2014)”
In this way relationship marketing can bring in profit into the company.
Reference
Fatma, S. (2014). CUSTOMER RELATIONSHIP MANAGEMENT: THE STUDY OF CUSTOMER PERSPECTIVES ON RETAIL BANKS IN INDIA. International Journal of Management Research and Reviews; Meerut , 27-38.
Kotler, P., & Kellar, K. L. (2012). Purhase decision. In K. L. Philip Koter, Marketing Management (pp. 170-171). New Jersey: Prentice Hall.