relationship marketing

Definition
Marketing activities that are aimed at developing and managing trusting and longterm relationships with largercustomers. In relationship marketing, customer profile, buying patterns, and history of contacts are maintained in a salesdatabase, and an account executive is assigned to one or more major customers to fulfill their needs and maintain the relationship.

marketing
Definition
The management process through which goods andservices move from concept to the customer. As a practice, it consists in coordination of four elements called 4P's: (1) identification, selection, and development of a product, (2) determination of its price, (3) selection of a distribution channel to reach the customer's place, and (4) development and implementation of a promotional strategy. As a philosophy, marketing is based on thinking about thebusiness in terms of customer needs and their satisfaction. Marketing differs from selling because (in the words of Harvard Business School's emeritus professor of marketing Theodore C. Levitt) "Selling concerns itself with the tricks and techniques of getting people to exchange their cash for your product. It is not concerned with the values that the exchange is all about. And it does not, as marketing invariably does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse, and satisfy customer needs."

marketing concept
Definition
Management philosophy according to which a firm's goalscan be best achieved through identification and satisfactionof the customers' stated and unstated needs and wants.

distribution channel
Definition
A path through which goods and services flow in onedirection (from vendor to the consumer), and the paymentsgenerated by them that flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers,distributors, agents, retailers. Each intermediary receivesthe item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution or marketing channel.

marketing strategy
Definition
A strategy that integrates an organization's marketinggoals into a cohesive whole. Ideally drawn from market research, it focuses on the ideal product mix to achievemaximum profit potential. The marketing strategy is set out in a marketing plan.

marketing mix
Definition
A planned mix of the controllable elements of a product'smarketing plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the rightcombination is found that serves the needs of the product's customers, while generating optimum income. Sometimes the first P (Product) is substituted bypresentation. See also marketing and mega marketing.

market orientation

Definition
A business approach or philosophy that focuses onidentifying and meeting the stated or hidden needs orwants of customers. See also product orientation and sales orientation.

The cocept of marketing marketing:

relationship marketing is changing the way marketer use traditional media channel to build brand image and awareness

Elements of relationalship marketing: 1:General Advertising 2:sales promotion 3:direct marketing

CRM and the Customer LifeCycle
The addition of the Internet as a commerce and communications channel has forced many companies into direct contact with their customers for the first time, and kicked off the accumulation of transactional information companies have never had access to before. This situation spawned a tremendous amount of demand in the marketplace for solutions, including analytical CRM, the newer CLM (Customer LifeCycle Management), CRP (Customer Relationship Planning), and all the related approaches for implementing data-based marketing programs such as 1-to-1 Marketing, Relationship Marketing, Customer Retention, and Customer Loyalty Marketing.

What is Simple CRM? CRM Boiled Down to the Essential, Practical Elements
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Measurement and Tracking of Customer Retention Ensuring customer-centric policy and procedure Action-oriented customer defection response mechanism Ongoing customer retention "safety net" programs Employee training on key customer-facing issues

Why is Simple CRM an Attractive Solution?

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Generates Quick, Measurable Benefits with Low Risk Implementation not Disruptive to Business Computer Systems Agnostic 80% of the Benefits of "CRM" for 20% of the Cost Can be used as a Low Cost "trial" or CRM Pilot leading to a More Advanced Solution Allows Measurement and Estimation of "True ROI"

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How Does Simple CRM Work? There are three stages to the Simple CRM Program:

Measure: evaluates current customer retention situation, both with "hard numbers" economic analysis and "soft numbers" review of policy and procedure Manage: implements customer retention marketing and training programs to slow defection rate and recapture lost customers profitably Maximize: creates a feedback loop for continuous employee learning on "what works and what doesn't"

Simple CRM 1st Stage Measure: Some Key Attributes

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Define customer defection and find the exact customer defection rate Quantify the defection rate in real profit dollars Rank current customers by likelihood to defect Review existing customer-facing policy / procedure Evaluate internal service standards Blueprint Highly Valued Service Paths

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Simple CRM 2nd Stage Manage: Some Key Attributes

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Initiate High ROI ongoing customer retention marketing program, based on customer's likelihood to defect rank and customer value Initiate defected customer recapture program Initiate Customer Centric toolbox Bill of Rights, Customer Retention Statement, Customer Officer, Job Descriptions Set service quality measurement standards and tracking

Deliver training: Dazzling and Delighting Customers Complaints are Golden Opportunities

Simple CRM 3rd Stage Maximize: Some Key Attributes

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Institute "Trip Wire" Reporting to sound alarm when best customers are in danger of defecting, both hard and soft triggers Optimization of customer retention marketing program; continuous learning feedback loop drives program improvement over time Optimization of defected customer recapture program; also has continuous learning feedback Optimization of complaint handling and resolution system for lowest loss / least expense tradeoff

Customer Retention
Customer Retention marketing is a tactically-driven approach based on customer behavior. It's the core activity going on behind the scenes in Relationship Marketing, Loyalty Marketing, Database Marketing, Permission Marketing, and so forth. Heres the basic philosophy of a retention-oriented marketer: 1. Past and Current customer behavior is the best predictor of Future customer behavior. Think about it. In general, it is more often true than not true, and when it comes to action-oriented activities like making purchases and visiting web sites, the concept really shines through. We are talking about actual behavior here, not implied behavior. Being a 35year-old woman is not a behavior; its a demographic characteristic. Take these two groups of potential buyers who surf the Net:
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People who are a perfect demographic match for your site, but have never made a purchase online anywhere

People who are outside the core demographics for your site, but have purchased repeatedly online at many different web sites

If you sent a 20% off promotion to each group, asking them to visit and make a first purchase, response would be higher from the buyers (second bullet above) than the demographically targeted group (first bullet above). This effect has been demonstrated for years with many types of Direct Marketing. It works because actual behavior is better at predicting future behavior than demographic characteristics are. You can tell whether a customer is about to defect or not by watching their behavior; once you can predict defection, you have a shot at retaining the customer by taking action. 2. Active customers are happy (retained) customers; and they like to "win." They like to feel they are in control and smart about choices they make, and they like to feel good about their behavior. Marketers take advantage of this by offering promotions of various kinds to get consumers to engage in a behavior and feel good about doing it. These promotions range from discounts and sweepstakes to loyalty programs and higher concept approaches such as thank-you notes and birthday cards. Promotions encourage behavior. If you want your customers to do something, you have to do something for them, and if its something that makes them feel good (like they are winning the consumer game) then theyre more likely to do it. Retaining customers means keeping them active with you. If you don't, they will slip away and eventually no longer be customers. Promotions encourage this interaction of customers with your company, even if you are just sending out a newsletter or birthday card. The truth is, almost all customers will leave you eventually. The trick is to keep them active and happy as long as possible, and to make money doing it.

3. Retention Marketing is all about: Action Reaction Feedback Repeat. Marketing is a conversation, as the ClueTrain Manifesto and Permission Marketing have pointed out. Marketing with customer data is a highly evolved and valuable conversation, but it has to be back and forth between the marketer and the customer, and you have to LISTEN to what the customer is saying to you. For example, let's say you look at some average customer behavior. You look at every customer who has made at least 2 purchases, and you calculate the number of days between the first and second purchases. This number is called "latency" - the number of days between two customer events. find it to be 30 days. Now, look at your One-Time buyers. If a customer has not made a second purchase by 30 days after the first purchase, the customer is not acting like an "average" multi-purchase customer. The customer data is telling you something is wrong, and you should react to it with a promotion. This is an example of the data speaking for the customer; you have to learn how to listen. This site and the Drilling Down book are all about how to discover, manage, and listen to customer data. The data is speaking for the customer, telling you by its very existence (or non-existence) there has been an action (or non-action) waiting for a reaction. 4. Retention Marketing requires allocating marketing resources. You have to realize some marketing activities and customers will generate higher profits than others. You can keep your budget flat or shrink it while increasing sales and profits if you continuously allocate more of the budget to highly profitable activities and away from lower profit activities. This doesn't mean you should "get rid" Perhaps you

Customer Loyalty
This article is about customer loyalty in general. If you are looking for information on loyalty programs (points, etc.) .s If you want to read a case study describing how incredibly profitable well-designed loyalty programs can be Customer loyalty describes the tendency of a customer to choose one business or product over another for a particular need. In the packaged goods industry, customers may be described as being "brand loyal" because they tend to choose a certain brand of soap more often than others. Note the use of the word "choose" though; customer loyalty becomes evident when choices are made and actions taken by customers. Customers may express high satisfaction levels with a company in a survey, but satisfaction does not equal loyalty. Loyalty is demonstrated by the actions of the customer; customers can be very satisfied and still not be loyal.