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To effectively manage customer relationship, marketers normally employ the following
three approaches:
1. Customer Value and Satisfaction
Customer perceived value is the customer’s evaluation of the difference between
the benefits and costs of a marketing offer relative to those of the competing
offers. Whereas the customer may not be accurate in judging the cost and values,
they would always want to maximize their benefits at minimum cost.
Customer satisfaction refers to a products perceived performance as compared to
the buyers’ expectation. If the products performance falls short of expectation the
customer is dissatisfied and vice versa. Smart companies aim at delighting
customers by exceeding their expectation.
2.Customer loyalty and retention
For successful CRM marketers must work to create customer loyalty. A loyal customer is
one who buys the company’s brand and no other. E.g a customer goes to the store to buy
Kimbo{ not cooking fat} if Kimbo is not in the store he tries the next store rather than
settling for another brand. Marketers must strive to grow the customer through the loyalty
ladder from prospect, to customer, to client to a supporter, and finally to an advocate.
Hence for companies to retain their customers for a longer period, they must aim high in satisfying their needs and wants.
3. Growing share of customers
Marketers are pre-occupied by the want to increase their share of customers i.e.
the share they get of the customers purchasing in their product categories.
To increase share of customers,
- Firms can offer greater variety to current customers.
- Train employees to cross sell - Cross selling means getting more business from current
customers of one product by selling them additional offering e.g. offering a customer
who comes to buy a suit, a shirt, tie, a belt and shoes.
Titany answered the question on November 3, 2021 at 06:57