Question 2:
With referring to the changes of Consumers, there is growing consumer
diversity due to demographic and behavioral trends. (Discuss these trends with suggesting
how you will overcome them in your CRM strategy). ( 5 Marks)
Regarding to demographic trends
it differs from region to another this diversity in consumer demo graphs should be taken in
consideration in CRM strategy like:
Aging Populations in Developed Countries
The differences in median ages across developed and undeveloped countries thus can be
quite dramatic. The median age in the United States for example is 38, whereas in India it is
26.
Thus CRM strategy will differ, in USA than from India the CRM approach in USA will be
more about values and prospectives
Increasing Diversity in Ethnicity
Many countries have ethnic diversity to due immigration and their population has different
races like in USA we have Hispanic, African American and the white people each group
with different cultural and different taste in clothing in eating and have different occasions so
CRM should consider different consumer approach for each group
Increasing Individualization
In western countries, approximately 50% of women work full time and there increase in
ratio of single parents and dual-career households so companies CRM must increasingly
consider the individual behaviors of family members who spend more time apart, rather
than assuming household homogeneity each sector has different behavior due to its
lifestyle.
Regarding to Behavioral trends
Consumers have different and variant tastes and behavior so CRM strategy should consider
overall behavior of consumers
Increased use of social media
Even nowadays due to the pandemic the use of social media is doubled and CRM strategy
should be more dependent on the communication with customers through different
platforms such as Facebook and twitter and monitoring customer behavior online and have
immediate response for customer’s complaints and feedback
Increased Use of Apps
due increase the use of mobile phones the use of Apps on the mobile increased as well so
companies design and utilize apps to communicate more with their customers
Use of real time data
due to internet and mobiles customers are always and continuously informed with data and
news 24/7 this can be used by firms to be more precise concerning their target groups
Rise of convenience and self-service consciousness
demands for convenience have led to the rise of self-service options. When they can,
people want to take care of their own needs without struggle. Companies must do both:
Empower consumers to perform minor services themselves by offering convenient self-
service options but be consistently available when customer problems grow more complex.
Increased demand for experience and authenticity
Goods and services no longer sufficient to differentiate the brand and satisfy the consumer.
Instead, companies should create memorable events and experience that personally
engage the consumer
information transparency in the digital age provides consumers with a better understanding
of marketers’ persuasion tactics. Thus, companies should be transparent, honest, and
consistent in their communication as well as reflect the company’s values.
Rise of health and sustainability consciousness
Customers nowadays are looking for healthy organic products and Eco-friendly
Companies strategy should be more consistent with is behavior to be more transparent in
the information about their products like use scanned barcodes to inform consumers about
the ingredients also to use eco-friendly items like Biodegradable / Disposable Waste Bags
and sandwich’s wraps >
