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Question 1: How does CRM act as a strstegic marketing tool?

Marketing is one of the new discoveries in business management. Of late, marketing has come to
occupy significant position in the overall strategic studies. Various challenges are emerging in marketing
as well as new approaches are being made in its study to view its different aspects of the many things it
has been recently realized that customer is the most important elements in marketing and its
sustenance and retention is far more important than any other marketing functions.CRM is one of the
core area in marketing.

Marketers can use a range of data including first party data such as contact data, demographics,
customer service, digital marketing interactions, customer satisfaction, social media interactions and
transactions. This can also be supplemented with third party assets such as lifestyle, behavioral
information, life event data and purchase intent.

Question 2: what are key driving forces behind the use of CRM rise of data driven marketing.

According to Media Math, 53% of digital marketers said “a demand to deliver more relevant
communications/be more ‘customer-centric’” is one of the top driving factors for companies who are
investing in data-driven marketing.

eMarketer reports that 90.7% of US advertisers and marketers segment data to better target and
engage with their customers. In fact, over half said that they were more advanced in that area than even
five years ago. eMarketer also reports that 92.3% of organizations maintain databases to host
information on customers or prospects, at least to some extent.

Customer Value: It is important to empathise on customer value as it helps an organisation to grow

faster. Due to the changes in the current technology and the existence of high competencies, customer
values also help in influencing the customers future purchase which is integral for the growth of the
business. In short, the balance of power has been shifted from the companies to the valuable customer.
Customer value is essential for analysing the customer approach in this competitive market.

Customer Satisfaction can be termed as the measurement tool used to check how successful is a
business in providing quality product or services to their customers to overcome their expectations.

If the performance of the product/services falls short of expectations the customer is dissatisfied. It is
important to provide complete customer satisfaction as it not only maintains an existing customer, but
also helps in bringing in new number of customers into the business. It always falls cheaper to maintain
the relations with an existing customer, than spending out a huge amount of finance in marketing to
attract new customers. If a customer remains satisfied with the product and services they not only
remain loyal to the company, but they also bring up the goodwill of the company by their word of
mouth, which in return attracts new customers into the business.
Customer Loyalty is defined by the entire process in which a customer provides repeat business to an
organization by returning frequently. It is when a customer chooses to buy the products or services of
the same business repeatedly rather than opting for similar products by the other competitors.
Customer loyalty is important in maintaining the foundation of a business. When a customer remains
loyal to a business they serve as medium in increasing the business by their word of mouth. When a
customer remains loyal they serve as a important medium in attracting new customer and hence saves a
large amount of finance expenditures for marketing.