Consumer relationship management

Table of Content

Implications for sales managers in moving to a relationship based way of working

Customers are often for life. We don’t realize it, but sometimes the customers we make early on grow with us and the brand becomes a part of their lives. But is that still true in the current context? Perhaps not, since consumers today are a spoilt lot. They have a plethora of brands to choose from, and use their discretion to decide whom to go along with (Batterly 2004).

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This is why relationship management has today become a significant focus area for corporations the world over (Hansen 2000). Companies have realized that the only reason why consumers will continue to be with them is not because of an old standing relationship, but because they feel that their unique needs are being met, and they have a say in what they get. Also, consumers need to know often that they are important to the entire system, and not just a mere number that the company can flaunt. This is why it is essential to carry the relationship much beyond the purchase, and into the life of the consumer.

A transactional form of sales strategy has been the rule rather than the exception since times immemorial. It is only in recent times that companies are recognizing the potential of moving from a purely transactional style of working. However, for the sales manager, it is not easy moving from one system, which is established to a more modern and relatively unknown way of working. Several questions will be asked and its validity questioned. In that sense it is important to keep something in mind. No two consumers are alike (Egan 2008). Each consumer has different needs and different expectations from his product or service experience. This difference in each person needs to be appreciated and observed at closer detail.

One of the biggest mistakes a sales manager could make is not picking up the finer nuances of human differences. In the traditional transactional model, it works to have a uniform way of working, and assume that your consumers have a need that you will fulfill through your product. But when it comes to relationship building, then one has to think of the particular type of consumer it is (Johnston & Marshall 2005). How do we build relationships with both the old lady who enjoys our products and the bunch of kids who frequents our stores? The answer is simple, and we have leading brands that we can learn from. The secret is to prepare and present unique customer relationship building programs to each of our different target audiences (Lambert& Dugdale 2007). Take an example of McDonalds. It believes in adding value to the experience of each and every visitor that walks through the golden arches. So it will have special collectibles and toys for the kids, but also have a program going to the older lot.

Another thing to realize is that culture plays an important role in relationship building. People in different parts of the world behave differently, and also react differently to similar situations (Thrupp. & Willmott  2003). This makes us realize that we need consumer relationship management that will be relevant to the area in which our operation is in. Careful planning needs to go in to ensure that our ideas are not biased with the flavor of a particular territory or geography (Schumann 2009).

Finally, as is expected in any major initiative that the sales and marketing team undertakes, it is important to have the buy in of the entire management (Hogan & Warrenfeltz 2003). Customer focus and relationship management need to be strong focus areas for the company is totality and not in isolation. The company has to weave their significance into their vision, mission and values. If that doesn’t happen, then the sales manager will find it extremely frustrating to adopt a way of work which is not in line with what his team members and his seniors are is agreement with.

New age media and its role in building consumer relationships

The world of media has undergone an explosive change in the recent times. There is a new development every day and there is possibly no field which is so dynamic and ever changing. This has thrown up interesting challenges for marketing people the world over, and advertising is now able to reach out to more and diverse people. However, the fact is that traditional media like television, print and below the line like activations still do remain the mainstay of most media plans (Shimp 2008). They still form the bulk of activity that happens on any brand. This is because the reach that they have to offer is unmatched. They are able to touch several consumers in one go. Some individuals also argue that some traditional techniques offer a better personal interaction with the consumer. However, in my mind, this thinking is challenged, and for building strong bonds with customers, nothing beats the specific nature of new age media.

The key driver for this is the internet. The advent of the net revolution truly changed the way brands interacted with the world (Donohue 1994). We now see the brand where it is relevant to us, and it also touches us at various points where we were hitherto unspoken to. The internet has also helped companies get more in touch with their consumers. They can now own and boast of great websites, which act as wonderful brand ambassadors. In a way, the website of a brand helps define the tone and tonality of a brand. It can help connect with consumers and keep them abreast with what the brand landscape looks like

(Chaffey & Mayer 2009). This was never possible with the more traditional forms of communication.

The new media has also made it possible to use sophisticated tools and software to manager and develop the consumer base (Baran & Galka 2008). Customer relationship management or CRM has greatly developed on the foundation of technology and been able to take a critical leap thanks to the enabling powers bestowed on it with science. Collection of information about consumers is one thing, but being actually able to make sense of it and maximizing its usage is what truly makes brands develop strong winning bonds (Payne 2005). And this is where new media helps score.

Even if we were to look at the umbrella branding option of the internet, even within it there are a diverse range of options which advertisers can weave into their media and communications plan. One big one which comes into my mind is the social networking platform. Social networks continue to grow the world over and their size and dominance over our virtual lives is actually mind boggling (Dovey & Lister 2009). For a marketing person, they are a veritable delight. These offers the ability to interact with niche consumers who have specific needs and also to ensure that the consumer is able interact with the brand (Hoyer & Macinnis 2009). For example, through fan pages, and communities, the consumer can now feel like he is a part of the brand like never before. His connection can be strengthened and he will become an even bigger loyalist. What is also great about social networks is that they serve as great advocacy grounds. So, your consumers will talk and create a buzz about your products if they like them, and you have built a strong relationship. Of course, the converse is also true!

On the downside, there might still be chances wherein your reach is so limited with new media that you really can’t do much consumer building work. It is great for talking to niche audiences, and making people loyalists, but in terms of actually maintaining that bond, nothing beats conventional forms of communication like on ground events, activation and noise at the retail level (Drewniany & Jewler 2007). These are real time spaces where the consumer and the brand interact, and their importance cannot be over-emphasized. In fact, brands might want to create the buzz and arouse curiosity through new media, but it is the on ground experience with the brand that can truly generate the “WOW”, and get the crowds all excited and charged up (Foster 2003). This is when they can truly touch and feel the brand and realize that it is what they want. The human need can meet a tangible solution in real life, and not in the virtual world. And this is something that brands need to realize before they jump onto new forms of media and abandon below the line activities in the bargain. A judicious mix of both is ideal to ensure that the marketing communications plan is robust and comprehensive.

Ultimately, we can say that consumer relationship management is of paramount importance to companies the world over, and this is something that defines the way they work and the business they do. The level to which we engage with consumers might vary depending on the type of work and scale of operation. However, one thing is for sure, in a market which is increasingly getting even more cluttered every day and with consumers asking for more and more, only those brands will stand out that make a vital connect with consumers, a connect which is for life.

List of References

Baran, R.J. &. Galka, R.J. (2008) Principles of customer relationship management.

USA: Thomson

Batterley, R. (2004) Leading through relationship marketing.Australia: McGraw-Hill

Chaffey, D. & Mayer, R. (2009) Internet Marketing: Strategy, Implementation and Practice. USA :Prentice Hall

Donohue, L. (1994) New media: the coming digital age. USA: Prentice Hall

Dovey,J. & Lister. M. (2009) New Media: A Critical Introduction. USA:

 Taylor Francis

Drewniany, B. L. & Jewler, A. J. (2007) Creative Strategy in Advertising. USA: Thomson

Egan, J. (2008) Relationship Marketing: Exploring Relational Strategies in Marketing. USA: Financial Times Prentice Hall

Foster, A. (2003) Purposeful Expression: Understanding and Using Your Language Effectively .Canada: Trafford

Hansen,U.( 2000) Relationship marketing: gaining competitive advantage through customer. Germany: Springer

Hogan, R. & Warrenfeltz, R. (2003)’Educating the Modern Manager’. Academy of Management Learning and Education 2, (1) 74–84

Hoyer, W.D. & Macinnis, D.J. (2009) Consumer Behavior. USA: Cengage

Johnston, M. W. & Marshall, G.W. (2005) Relationship selling and sales management. USA: McGraw-Hill

Lambert, D. & Dugdale, K. (2007) Smarter Selling: Next Generation Sales Strategies to Meet Your Buyer’s Needs. USA: Financial Times Prentice Hall

Payne, A. (2005) Handbook of CRM: achieving excellence in customer management.

Oxford: Butterworth-Heinemann

Schumann, J. H. (2009) The Impact of Culture on Relationship Marketing in International Services. Germany: Gabler

Shimp, T. A. (2008) Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. Canada: Cengage

Thrupp, M. ; Willmott, R. (2003) Education management in managerialist times: beyond the textual apologists.USA: Open University Press

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