There are several difference between the CRM and traditional marketing. In traditional marketing, it is more company oriented. It focuses on the traditional ups, I. E. Price, place, product, promotion. However, CRM Is customer oriented. The focus will be changed from ups to ACS, I. E. Cost to customers, convenience, customer needs and wants, communication respectively. Apart from the different orientation, since CRM emphases on relationship with customers Instead of the transaction deal with customers, therefore, the contact with the customer is more mutinous in CRM than the traditional marketing.
As CRM is customer oriented, company will have a high emphasis on customer services and high commitment to meet customers’ expectation. Conversely, traditional marketing is company oriented, so their orientation is about single sales and product. Thus, there is little emphasis on customers’ services and limited commitment in meeting the expectation. Last but not least, the ultimate goal of these two marketing is different. For transactional marketing, company are relatively focusing on short term profit. But CRM focusing Eng term profit. Here is an example of Mercedes Benz successfully implement the CRM.
At first, Mercedes Ben’s services were complained by customers. (Mercedes-Benz: Implementing a CRM, 2014) The services quality didn’t match with the high quality of car and inconsistency between communication and the services provided. In addition, each dealership has Its own database, the Information cannot share among Benz and dealers. With these situation, it was necessary for Benz to implement CRM. After the implementation, there is additional sales generated from CRM. Also, the revise quality was Improved and every relationship, e. G. Customers, dealers, was carefully handled.
To develop a CRM system, here are some critical successful factors. First, the company need to identify what problems had occur currently, for example, Benz had services quality problem. After that, firm should try to adapt or develop an IT program for recording the customers’ detail and integrate the database so as to improve the services. Apart from developing an IT system for CRM, it is Important that there Is a cooperation between different staff. In Mercedes Benz case, here was training provide for salesperson to collect the right information from customers so as to perfecting the CRM system.
Finally, In developing a CRM system, the CRM should solve,’ improve the current problem and help firms to provide competitive edge in future. Electronic one – e-CRM. In e-CRM, there is an increasing convenience especially for online shopping. For example, creating short cut in online purchase, e. G. Simple step to finish the transaction, so as to increase the intention to shop online and improve the online experience provided by the company. Furthermore, with the use of online hop, it is easier for firm to connect with the customers again, e. . Email. Company can link their brand/products to customers’ calendars, email… Etc. So as to keep the top of customers’ mind. Besides, recommendation becomes one of the important aspect in e-CRM. As there are tons of information in the internet, customers will feel uncertain about the products. Therefore, companies and online shops need to provide recommendation to customer in order to cope with future CRM. For example, companies are suggested to provide customers reviews, rating and other product hat customers are likely to purchase.
Moreover, for the simplicity, the online platform should be designed as user friendly as possible. With the ease-of-use, it helps to improve the online shopping and interaction experience. With the information collected from above, firms should remember and apply customer name and preferences so as to provide the things that customers’ needs and create relationship by addressing their name. Last but not least, with the increase use of the internet, customers raise the concern about the internet safety problem. Companies would keep the personal data, credit card number… Etc. In a safe and secure condition by upgrading or investing on the security system. Apart from the future CRM, it is important for business to develop CRM. With the use of CRM, firms can differentiate customers into different tier. By differentiating them, firms can use the right strategies and marketing mixes to target the right customers, so it is more cost efficiency. Also, it helps to increase the customer retention rate. It costs less retain existing customers than acquire new customers. In addition, attained customers are more profitable than new customers.