Posted in Marketing and Strategy Terms, Total Reads: 1348
Definition: Customer Relationship
This is the relation that the firm maintains with its customers. Customer relationship management plays a crucial role in today’s customer centric business. It plays an important role in the success of both service and product based business.
Customer relationship management is based on segregating the customers and finding out the value of each of them. Using customer databases and software available in market, the customers are segregated in groups according to the value they bring to the firm. The firms can keep a record of these customers and build a stronger relation with the high potential customers and use it to their advantage. Relationship management includes all the actions a firm takes to get closer to its customers. It includes small actions like sending a birthday card or ensuring that the customers get proper service.
A good Customer Relation Management helps in the following manner:
- It helps in building loyalty to our brand
- Helps in retaining the high profit customers
- Helps I converting the low middle level customers to high profit customers
- It enhances the longevity of the customer association