Define Customer Relationship Management and explain its associated tools and levels of relationships

 115) Define Customer Relationship Management and explain its associated tools and levels of relationships.

116) Explain why the aim of customer relationship management is to create not just customer satisfaction, but also customer delight.

117) Discuss the challenges and advantages of new communication technologies for marketers as they work to build relationships with their customers.

118) Define customer equity and explain how a company can increase it.

solution

115) Customer Relationship Management and explain its associated tools and levels of relationships

Customer relationship management (CRM) defines the process of managing and analyzing customer interactions and data throughout the customer life cycle and is a growing field of study (Chai et al., 2020, para. 1). As companies collect and store increasingly complex and detailed information about customers, their buying patterns, spending habits, product preferences, and other personal characteristics, they are faced with the challenge of how to use all the data they gather to provide the best customer experience and create greater profits.

Customer Relationship Management is a popular field of study that is used to define customer relationships as they develop throughout the customer lifecycle. A customer relationship is described as "the set of conditions between a customer and a company, which determines the nature of the interaction" and is used, within a company, to structure relationships between the company and its customers. The most commonly used model of customer relationship management (CRM) is the customer life cycle, which classifies the customer relationship into 3 levels of relationships. In this model, the first level is the "cold" or "direct" relationship in which the customer is not known to the company, the second level is the "proximate" relationship in which the company and customer know each other but are there.

116) Reasons customer relationship management aims to create customer delight in addition to customer satisfaction.

Customer relationship management aims to create customer delight and not just customer satisfaction. This is done to gain a better understanding of the customer which leads to creating a better customer experience. To understand the customer and create a positive experience, the company must go beyond simply satisfying customers and think about how to create meaningful and valuable relationships with customers through the entire customer lifecycle. The result is higher levels of customer satisfaction and greater profitability.

117) Challenges And Advantages Of New Communication Technologies For Marketers As They Work To Build Relationships With Their Customers

Challenges of new communication technologies for marketers as they work to build relationships with their customers. With the rapid emergence of new communication technologies and the digital economy, a new era in customer relations can be found. Customers’ demands require a new approach to customer relations with a more personalized and relationship-based approach. The most common challenges of new communication technologies during consumer relationship management (CRM) include consumer empowerment, customer self-service, customer self-expression, and enhanced customer value. The changes in communication technologies may lead to a decline in traditional advertising and marketing strategies. The advantages of new communication technologies for marketers as they work to build relationships with their customers.

With the emergence of new communication technologies, customer relationship management (CRM) is experiencing an increasing number of benefits.

The advantages of the new communication technologies for businesses include customer empowerment, enhanced customer engagement, customer self-service, customer self-expression, and greater customer value. The new communication technologies may also lead to a decline in traditional advertising and marketing strategies. The benefits of the new communication technologies may include higher revenue, more loyal customers, and more satisfied customers.

118) Customer Equity And How To Increase It

Customer equity and how to increase it Customer equity is a type of customer value that is generated from the company's efforts to understand and create meaningful and valuable relationships with customers through the entire customer life-cycle (Bhasin, 2019).

Customer equity is defined as a customer value that is generated from the company's efforts to understand and create meaningful and valuable relationships with customers through the entire customer lifecycle. Customer equity is not the same as customer loyalty, which is simply a customer relationship that has been established. Customer equity is the intangible value that stems from customer loyalty, and in the same way that we recognize that loyalty is a crucial element in a customer relationship, so too can customer equity be said to be a crucial element in a customer relationship.

Through CRM, a company can increase customer equity in any way by focusing on the four elements of Customer Relationship: Relationship Management, Customer Relationship Quality, Customer Relationship Satisfaction, and Customer Relationship Loyalty. A company can increase customer equity by focusing on these elements of customer relationship management. For example, a company can increase customer equity through better understanding the customer as a person through the use of new technology and better understanding the customer as a marketer through marketing. Customer relationship management can also be used to increase customer satisfaction and customer loyalty.

References

Bhasin, H. (2019, March 20). What is Customer Equity? Components of Customer Equity. Marketing91. Retrieved October 26, 2021, from https://www.marketing91.com/customer-equity/

Chai, W., Ehrens, T., & Kiwak, K. (2020, September 25). CRM (customer relationship management). SearchCustomerExperience. Retrieved October 26, 2021, from https://searchcustomerexperience.techtarget.com/definition/CRM-customer-relationship-management