1|Sp ecia l Track 1
TECHNOPRENEURSHIP
CUSTOMER RELATIONSHIP MANAGEMENT • Behavioral Changes. Describe
shifts in the way consumers
The strategic process of selecting customers
act and react to market
that a firm can most profitably serve and
offers.
shaping interactions and relationships
2. Marketplaces. Changes with respect to
between a company and these customers.
the marketplace as influenced by
(Kumar and Reinartz, 2018)
globalization has seen key changes and
developments in businesses.
TWO MAJOR CHNAGES IN THE
FUNCTIONS OF CRM:
MARKETPLACE:
1. Customer Data Management. Involves • Intensified Competition for
collecting, organizing, and analyzing Customers in Fragmented
customer information, such as Markets.
demographics, purchase history, • Difficult differentiation
preferences, and interactions with the
company. (Payne, 2005) 3. Marketing Functions. Changes in
2. Interaction Tracking. Refers to recording technology and society also lead to shifts
and monitoring each customer’s contact in the role of the marketing function.
or engagement with the company. This TWO TRENDS IN THE MARKETING
includes interactions across various FUNCTION:
channels, such as phone, email, social • Media dilution and channel
media, and in-person visits. (Lemon and multiplication
Verhoef, 2016) • Decreasing marketing
3. Relationship Building. Involves the efficiency and effectiveness
strategic use of CRM data and insights to
CRM PERSPECTIVES
foster trust, loyalty, and engagement
with customers. Through personalized CRM (Customer Relationship Management)
communication, rewards, and follow-up, perspectives refer to the various approaches
companies aim to build stronger, long- or viewpoints through which CRM strategies
term relationships with customers. and practices are analyzed, implemented, and
(Morgan and Hunt, 1994) evaluated.
• FUNCTIONAL LEVEL. Refers to the set
of processes that must be in place to
THREE MAJOR FACTORS THAT INFLUENCE
execute customer related tasks, such
CRM:
as sales force automation or online
1. Consumers. Changes with respect to campaign management. (Kumar and
consumer preferences is essential to Reinartz, 2018)
understand the growing importance of a • CUSTOMER-FACING FRONT END
strategic approach to CRM. LEVEL. a set of activities that provides
TWO TYPES OF CONSUMER a single view of the customer across
CHANGES: all contact channels. (Kumar and
• Demographic Changes. Relate Reinartz, 2018)
mostly to current • COMPANY-WIDE LEVEL. a strategic
developments in the growing orientation to implement customer
diversity of customers centricity within the entire
Joyce Camille T. Cepe
College of Business, Economics and Management
2|Sp ecia l Track 1
TECHNOPRENEURSHIP
organization and create shareholder The Satisfaction-Loyalty-Profit
value. (Kumar and Reinartz, 2018) Chain
VALUE CREATION Increased value for the customer is expected
to lead to greater customer retention, which
Involves innovations that establishes or
is often used as a proxy for customer loyalty,
increases the consumer’s value of use for
which then is expected to lead to greater
benefits of consumption. (Priem, 2007)
profitability or value from the customer.
CONDITIONS AT WHICH VALUE IS CREATED: (Kumar & Reinartz, 2016)
1. Customers will be willing to pay for a
novel benefit,
2. Customers will be willing to pay more
for something perceived to be better
3. Customers will choose to receive a
previously available benefit at a lower
unit cost, which often results in a
greater volume purchased.
VALUE TO THE CUSTOMER
Companies must be able to maximize the
value they deliver to their customers while at
the same time extracting enough value from
customers to achieve positive ROIs (Kumar &
Reinartz, 2016)
Joyce Camille T. Cepe
College of Business, Economics and Management
3|Sp ecia l Track 1
TECHNOPRENEURSHIP
Joyce Camille T. Cepe
College of Business, Economics and Management
