Customer relationship marketing Essay Example | Topics and Well Written Essays - 2500 words

Customer relationship marketing - Essay Example More and more business organizations are capitalizing and putting their major efforts on building and maintaining strong customer relationship mainly to gain highly useful and valuable information on how can they best serve their customers and keep them loyal. Relationship: A strategic Initiative ‘Strategy’ is a very common buzzword in the business filed. Large number of businesses find success with their strategy where as many turn out of the business due to in-efficient strategies. Strategies have been playing extremely significant roles in marketing in recent years. It can be argued that relationship marketing seems to be the central point of all other management strategies because no other strategies can bring success unless there is ‘better relationship’ with customers. More specifically, Total Quality Management, Supply Chain Management and Knowledge Management are some of the widely applied management strategies and these can turn to be in-effective i f the firm failed to build better relation with its customers. The older profit maximization, product orientation and transaction-based marketing concepts have been questioned and thence faded away and newer concepts of Customer Relationship Marketing has gained considerable place in marketing landscape. It eventually resulted a shift from the profit orientation to the concept of consumerism. Consumer has been placed to be ‘king’ or ‘boss’ in the market and this is often termed as a change from in-out approach to the ‘out-in’ approach. Most industries, service sectors like hospitality in particular, in very recent days give extreme importance to building and maintaining ‘consumer loyalty’. Relationship marketing is basically a stronger strategy to create customer loyalty. ‘Value creation’, ‘customer loyalty’ and ‘relationship marketing’ are more inter-related terms in marketing, because relati onship marketing and its tools have been found to help achieve customer loyalty by creating and adding values to the customers. Customers are better satisfied only when they find expected values from the products or services they consume and this in turn lead them become loyal customers. When it comes to the strategy perception, the marketing management focuses on retaining customers and make them their loyal customers. A vision to generate profits or increase production or compete with others through any possible measures is not exactly what a business is expected to have. Instead, production, competition and what ever a business does must be intended and able to satisfy its potential customers, give them the expected quality, values and reasonable standards, keep good relation with them in a way that they are treated as most valued ‘stakes’. Relationship marketing undertakes to know how to provide values to the customers. Empirical evidences show that 20 percent of th e customers bring in 80 or more percent of the profits for a business and therefore companies find relationship marketing as a key element to attaining reasonable profits that can help them survive in the business. Finding new consumers is often more expensive than retaining the existing consumers and converting them to ‘