Page 85 - DMGT510_SERVICES_MARKETING

Services Marketing Sukhpreet Kaur, Lovely Professional University

Notes Unit 5: Customer Relationship Management in Services

CONTENTS

Objectives
Introduction
5.1 Customer Retention through Relationship Marketing

5.1.1 Benefit of a Successful Customer Retention Programme
5.2 Components of CRM

5.3 Steps of CRM
5.4 CRM Business Cycle
5.5 Customer Relationship Analytics

5.6 Lifetime Value of a Customer
5.7 Summary
5.8 Keywords

5.9 Review Questions
5.10 Further Readings

Objectives

After studying this unit, you will be able to:
Describe the Service-profit Chain Model

Identify the components of CRM

Discuss the CRM Business Cycle

Realise the concept of Customer Relationship Analytics

Describe the concept of Lifetime Value of a Customer

Introduction

Management is a broader concept than marketing, because it covers marketing management,
manufacturing management, human resource management, service management, sales
management, and research and development management. Thus, CRM requires organizational
and business level approaches – which are customer-centric – for doing business rather than
simply a marketing strategy. CRM involves all of the corporate functions (marketing,
manufacturing, customer services, field sales and field service) required to contact customers
directly or indirectly. The term “touch points” is used in CRM to refer to the many ways in
which customers and firms interact.
CRM is a business strategy that goes beyond increasing transaction volume.

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