CRM stands for Customer Relationship Management

This strategy approach in a set of technologies used by businesses to manage and analyze interactions
between current and potential customers. CRM focuses on building and nurturing customers for
relationships throughout the customer life-cycle with the goal of improving customer satisfaction,
retention, and loyalty.
In simple words, it is the process of managing interactions with existing and potential customers. Through
this:
1. It retains customers 2. Encourages repeat purchases. 3. Increases brand awareness.
4. Helps sustainable business growth.
So, if you have a business where you’re corresponding to prospects, leads, sales, and customers. This is
for you!
Relationship Marketing - Relationship marketing is a marketing strategy that focuses on building long-
term, mutually beneficial relationships with customers. It emphasizes customer satisfaction, loyalty, and
retention, rather than just one-time transactions.
B&S - It enables organizations to streamline their sales processes, manage customer data effectively, and
optimize their interactions with customers. By implementing CRM systems, businesses can track leads,
manage opportunities, and forecast sales performance, leading to improved sales effectiveness and
revenue growth.
RM - focuses on building and maintaining long-term relationships with customers.
CIMS - These systems provide a centralized database for storing and organizing customer information,
including contact details, purchase history, and preferences. CIMS enables organizations to have a
comprehensive view of their customers, facilitating personalized interactions and targeted marketing
campaigns.
CRM - the rise of digital channels has given birth to e-CRM, which focuses on enabling customer
interactions through electronic channels such as the web and wireless platforms. e-CRM leverages
technology to enhance customer engagement, allowing businesses to provide self-service options,
personalized recommendations, and real-time support. This subset of CRM has become increasingly
important in today's digital age, where customers expect seamless and convenient online experiences.

POTENTIAL BENEFITS OF CRM

Cross-Selling – Cross-selling is a sales technique that involves offering customers additional products or
services that complement or enhance their original purchase. It is a strategy used by businesses to increase
their revenue by encouraging customers to buy more items or upgrade their purchases.
Up-selling - Upselling is a sales technique that involves persuading a customer to purchase a more
expensive or upgraded version of a product or service, or to add additional features or accessories to their
purchase.
POTENTIAL COSTS OF CRM
IT Infrastructure: Implementing a CRM system typically requires investing in the necessary hardware,
software, and network infrastructure to support the system. This may include purchasing servers,
upgrading existing hardware, or investing in cloud-based solutions. These costs can vary depending on
the size of the organization and the complexity of the CRM system.
Process Change: Implementing a CRM system often requires significant changes to existing business
processes. This can involve redefining workflows, retraining employees, and integrating new processes
into existing systems. The costs associated with process change can include employee training, consulting
fees, and potential productivity losses during the transition period.
Licensing and Subscription Fees
Maintenance and Support

CUSTOMER TYPES:
Platinum Heavy: These are typically the highest-tier customers who have a significant level of spending
and engagement with the business. They may have a long-standing relationship with the company and are
likely to be loyal and repeat customers. Platinum Heavy customers often receive special treatment,
personalized services, and exclusive benefits.
Gold: Gold customers are also considered valuable customers, but they may not have the same level of
spending or engagement as Platinum Heavy customers. They may have a moderate level of loyalty and
maybe more price-conscious than Platinum Heavy customers. Gold customers may receive some perks
and benefits, but they may not have access to the same exclusive offerings as Platinum Heavy customers.
Iron: Iron customers are typically average or regular customers who have a moderate level of engagement
and spending with the business. They may be somewhat loyal, but they are more likely to be influenced
by factors such as price and convenience. Iron customers may not receive as many personalized services
or exclusive benefits as higher-tier customers.
Lead: Lead customers are generally new or potential customers who have not yet established a
relationship with the business. They may have shown some interest in the company's products or services
but have not made a purchase or engaged further. Lead customers require nurturing and targeted
marketing efforts to convert them into paying customers.

Transactional Exchange – this usually happens if the product or service is not always in demand.
Meaning, that the buyer needs only the product or service at that moment. This one is hard to have a so-
called long-term relationship.
An example of a business that engages in transactional exchanges is a fast-food restaurant. In this type of
business, customers come to the restaurant, place their order at the counter, and pay for their food. The
interaction between the customer and the restaurant is focused on the immediate purchase of food, with
little emphasis on customization or personalization.
Arms-length relationship - An arms-length relationship means that the parties involved maintain a certain
level of distance and formality in their interactions. The focus is primarily on the immediate transaction
and fulfilling the immediate needs of both parties, rather than building a long-term relationship or
fostering ongoing engagement. The buyer and seller may not have a prior relationship or personal
connection, and the interaction is often based on the terms and conditions of the transaction.
Collaborative Exchange – in this exchange, this means that the parties have a mutual goal. They may be
working together to achieve common objectives.
Value-added Exchange - Value-added exchanges refer to business transactions where additional value is
created for the customer through the exchange process. In these exchanges, businesses go beyond simply
providing a product or service and aim to enhance the customer experience or offer additional benefits.
A good example of a business that engages in collaborative exchange is the automotive industry. In this
industry, car manufacturers often collaborate with suppliers, research institutions, and other companies to
develop and produce new vehicles and technologies.
An example of a business that engages in transactional exchanges is a grocery store. In this type of
business, customers come into the store, select the items they need, and complete the transaction at the
checkout counter.
Building lasting relationships with Customers.
1. Listen – when a customer comes to you with a concern or feedback, listen to what they’re saying.
This shows that you value their opinion and that you’re committed to improving their experience.
2. Communication is also essential. Be available to your customers through multiple channels –
phone, email, chat – and make sure that your responses are timely, clear, and friendly. This
creates a send of trust and reliability that will keep customers coming back.
3. Personalize the experience for your customers. This means taking the time to understand their
needs and preferences and tailoring your interactions to match. For example, if you know that a
customer prefers email over phone calls, communicate with them accordingly.
4. Follow up. After a sale or interaction, take the time to reach out to the customer and make sure
that they’re satisfied with their experience - that you are committed to building a long-term
relationship.