In addition to e-marketing, companies are becoming more skillful in customer relationship marketing and database marketing. Customer relationship marketing (CRM) enables companies to provide excellent real-time customer service by developing a relationship with each valued customer through the effective use of individual account information. Based on what they know about each customer, companies can customize market offerings, services, programs, messages, and media.
Customer relationship marketing holds that a major driver of company profitability is the aggregate value of the company’s customer base.
Winning companies are more productive in acquiring keeping, and growing customers. These companies improve the value of their customer base by excelling at the following customer strategies:
- Reducing the rate of customer defection.
- Increasing the longevity of the customer relationship.
- Enhancing the growth potential of each customer through “share-of-the-wallet,” cross-selling, and upselling.
- Making low-profit customers more profitable or terminating them.
Focusing disproportionate effort on high-value customers.
- Identify your prospects and customers. DO not go after everyone.
- Differentiate customers in terms of (1) their needs and (2) their value to your company. As for customer value, companies should spend proportionately more effort on their more valuable customers (MVCs).
- Customer value is estimated as the net present value of all future profits coming from purchases, margin levels, and referrals, ess customer-specific servicing costs.
- Interact with individual customers to improve your learning about their individual needs and to build stronger relationships.
- Customize products, services, and messages to each customer.
New technological advances and new market forces are creating a new economy. Companies and marketers need to add new tools and practices if they hope to be successful. For the best practices, consider a well-informed and qualified Digital Marketing Firm like transporttrendstechnologies.com.
Four specific drivers of the new economy are digitalization and connectivity, disintermediation and reintermediation, customization and customerization, and industry convergence. Digitalization in particular has introduced exciting new capabilities for consumers and for businesses.
Companies face many questions in adopting e-marketing. Three of them are knowing how to design an attractive website, knowing how to advertise on the Web, and knowing how to build a sound revenue and profit model for their dot-com business.