Article 1:
From Customer relationship marketing to Customer focused Oraganisations
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The Change: November2013 Issue
These last few years with the arrival of the internet, social media and smart technology as telephones and mp4 marketing had to adapt quickly. One of the recent emerging trends became more and more vital to some businesses survival: The customer relationship marketing (CRM). “Relationship marketing looks at the customer as an individual and tries to establish a relationship. It is concerned with the lifetime value of the customer.” (Blythe 1998).
This new customer focus is due to the fact it costs up to 5 times more money to attract a new customer to a business than trying to keep the known customers. (CMI 2010; Lawrence 2012; Webber 2008). The money could instead of being used to advertise and attract new customers it can be reinvested towards innovation and keeping the loyal customers happy by new strategies like data collection and analysis: database marketing. Database marketing is “compiling, analysing and using data held about customers in order to create better tailored, better timed offers that will maximise customer value and loyalty” (Brassington& Pettitt 2006).
Some companies like Tesco, Costa, Boots and Sainsbury’s collect the information of all the customers purchases by the use of loyalty card system that when the consumer swipes it automatically adds the purchases to the list of data already existent on that customer. This data is conserved and analyzed by the shop so it can make decisions based on previous purchases on which products to have in store to satisfy his customers individual needs and wants (Felgate et al 2012). Amazon and Tesco on their website proposes some products based on the previous purchase data. (Blythe 1998) This loyalty card system allows the customer to benefit of vouchers or offers due to the acquisition of points of loyalty towards the shop’s brand, which add up (Thomas 2009; EIU 2009). This can push customers to consume more to have the possibly to receive some vouchers and offers (Thomas 2009; EIU 2009).
Some companies like Tesco, Costa, Boots and Sainsbury’s collect the information of all the customers purchases by the use of loyalty card system that when the consumer swipes it automatically adds the purchases to the list of data already existent on that customer. This data is conserved and analyzed by the shop so it can make decisions based on previous purchases on which products to have in store to satisfy his customers individual needs and wants (Felgate et al 2012).
Amazon and Tesco on their website proposes some products based on the previous purchase data. (Blythe 1998)
http://www.chris-clarkson.com/tesco/