What is customer relationship marketing?
Customer Relationship Marketing (CRM) is a business process in which customer relationships, customer loyalty and brand equity are built through marketing strategies and activities. CRM enables companies to build long-term relationships with established and new customers while optimizing company performance. CRM includes commercial and customer-specific strategies via employee training, Marketing planning, Relationship building and advertising.
The core competency of CRM is extracting insights from customer feedback in order to create improved, solid and focused marketing and brand awareness. Important motivators for the development of innovative CRM strategies are web technologies and increased global customer loyalty.
Provides a way to Customer value to evaluate directly. For example, a company that really cares about their customers will be rewarded with customer and brand loyalty. Since CRM is mutually beneficial, marketability is progressing at a good pace.
Provides cross-sell opportunities where a company can offer proven marketing or branding strategies to multiple customers based on customer approval.
Customer relationship marketing should not be confused with 'customer relationship management', a related but unique concept that shares the acronym of CRM.