Role of CRM in Marketing

CRM's role is to help an organization find success through understanding its customer's needs.

There is no one true definition of customer relationship management. The role of CRM is to establish, maintain and develop long-term relationships between an organization and its customers. CRM optimization is created through information technology, customer life cycles and business strategies.

Information Technology

Information technology creates touch points, areas where an organization can interface with its customers. IT creates and maintains software that assist sales and customer service in the monitoring of touch points and customer needs.

Data Mining

Data mining evaluates patterns and relationships between segments of the organization's customers, enabling marketing to evaluate and make decisions that will effect the creation and delivery of lifetime values.

Customer Life Cycle

Customer life cycle is a marketing tool that summarizes the key strategies an organization develops to maintain customer relationships. The main focus of CLC is on the products and services a customer needs throughout the life of their business.

Permission Marketing

CRM's database enables marketing to store data and track every aspect of the customer's life cycle. Data stores can be used to set up permission-based marketing, where a customer can elect to accept marketing material from an organization.

Business Strategy

CRM's business strategy revolves around the acquisition of first-time customers, retaining current customers who purchase goods for a second-time and customer extension, where customers regularly return to buy products from an organization. In each step of the process, the organization expects growth in first-time or repeat purchasing.

References

• Marketing Teacher: What is Customer Relationship Marketing