Customer Relationship Marketing is an organization wide approach to learning about its customers in order to provide a better product or service. By combining the abilities to respond directly to customer concerns and to provide a highly customized experience, companies have a better opportunity of establishing and sustaining long-term customer relationships. The primary goal is to transform these relationships into greater profitability increasing repeat purchases and finding a way to retain customer in order to reduce the acquisition costs.
Customer interactions are one of the most important parts of any CRM strategy. These can occur at numerous places such as brick and mortar stores, online sites, catalogues, and service and sales calls. During these interactions, it is very important that the company gather relevant information about each customer. The first basic information that should be collected is demographic information. Find out the age, race, income, etc of your customer. Companies should then look for data about the channel in which that person chose to interact with the company.
Data can be collected on the stores frequently visited, the salesperson they interacted with and how they chose to interact with the company whether it be over the phone, computer, or in person. Next, information can be collected on the actual transaction. This would include things such as the frequency of the product usage, their product preferences, life stage, and their future profitability. The last place to look for information would be on how the actual use of the product or service. The can be found by looking at service calls, redeeming warranties, and even expressing satisfaction.
Now even if a company can gather this massive amount of information, it is virtually useless if it can not be stored and organized if an appropriate fashion. In order to accomplish this, a data...