Customer retention is one of the most important elements to ensure that brand loyalty is maintained. Businesses and companies should focus on innovatively and proactively retaining customers and clients wherever possible. If companies maintain their customers, then there are considerable effects including significant financial implications and long-term relationships that bode good will. This paper discusses the purpose of CRM and why the business world should embrace strategies related to delivering good value to customers.
What is CRM and why is it important?
According to Marketing Donut (2016), it is good in theory for businesses to keep customers both in the short and long term, but the task is not always an easy one. This is due in part to so much competition in the marketplace (p.1). For example, McDonald's might seek out ways by which it can keep customers purchasing its Big Macs, or patronizing it during the All-Day Breakfast campaign, but Burger King and others have a similar type of CRM that they have implemented that might also catch the eyes of consumers. As such, Marketing Donut (2016) recommends that in order to effectively maintain customers, that companies should work to make promises that they can keep. This means that the staff should be thoroughly trained so customers will want to return time and time again to the company (p.1). If promises are kept and maintained, then the customers will come to believe that the particular business seeks to portray and showcase good will to the public – and there will be a strong likelihood that those same customers will return, and new ones will try the company’s products, or services out.
Mandad (2015) writes that financially, companies should take the idea of retention seriously. A business, cannot survive with benefiting from consumer dollars. "A customer-centric approach is like DNA. It runs through the company unifying departments and divisions is a single-minded goal" (p.1). Thus, companies and corporations have a responsibility to meet the objectives of their mission and vision, while simultaneously making sure that they offer a substantial amount of choices and options to consumers so that they can create a brand loyalty - and in turn, increase their revenue and profitability.
Marketing Donut (2016) states that customer retention and building brand loyalty also involves spreading the word about what is being offered (p.1). There are often times when consumers do not necessarily know the extent of what a company offers. Therefore, spreading the proverbial word is key and critical to not only the businesses' financial implications, but also to keeping employees satisfied and loyal as well, because everyone is operating on one accord. This gets back to the previously mentioned concept of staff being trained extensively because these are the individuals that let both loyal and prospective customers know what a company offers. An example of this is a retailer like Target or Wal-Mart not letting customers know about certain discounts, or items that are sold in their stores. While one might assume that these types of retailers should carry a particular item, this does not mean that they do – and it is up to the staff to educate the consumer on whether the item is carried. Without proper training and knowledge, the staff will not be able to do this effectively, and as a result, the customer may opt to take their business elsewhere. Therefore, by having a quality training program, companies can ensure that the final outcome are customers that are loyal to them, and only them.
Roberts-Lombard (2011) comments that customer relationship management has the potential to maximize the lifetime value of customers. Regardless of industry, businesses can build and secure through customer need investigation and overall approaches to tapping into certain target markets, by taking the time to not only educate staff but analyze the wants and desires of consumers via consumer behavior (p.3487-3488). Customer relationship management and overall retention of customers relies on a comprehensive examination of consumer purchasing behavior, and overall communication with the consumer in addition to training the staff on product/service education.
Examples of CRM
Crompton-Reid (2013) provides a substantial example of CRM at work with the company Coca-Cola. One of the key aspects of the drink manufacturer is "marketing the product in a way that the customers feel a personal touch to the brand. [This is done] through emotionally connecting people to the brand. The connectivity between the customer and the product stands out and is memorable" (p.1). Each of the advertisements related to the drink company is executed in a way that appeals to the emotive dynamics of consumers. This is how Coca-Cola has been able to keep its customers, and why many prefer it over rivals, Pepsi and Dr. Pepper in many instances.
Using the earlier example of McDonald’s, the company has over the years, implemented certain campaigns that have been highly effective. McGrath (2016) observes that the McDonald's company is clever with its marketing strategy in building brand loyalty. Through the use of Ronald McDonald, and over campaigns such as the All-Day Breakfast, this has been pivotal to the companies' success, and will more than likely allow it to continue to have a considerable effect on the consumer marketplace when it comes to brand loyalty and customer retention (p.1). It is important to note that this does not mean that customers are forever beholden to McDonald’s as CRM has to be kept up in order to continue being effective. It does, however, mean that McDonald’s, Coca-Cola and others have a thorough understanding of the needs of the customer and have worked to integrate these needs into the products in order to effectually build long-lasting relationships.
References
Crompton-Reid, S. (2013, September 30). Coca Cola’s Strategy to Bring the Brand Closer to its Consumers. Retrieved from Total Customer website: http://www.totalcustomer.org/2013/09/30/coca-colas-strategy-bring-brand-closer-consumers-coca-cola-sharing/
Keeping customers — the importance of loyalty. (2016). Retrieved from Marketing Donut website: http://www.marketingdonut.co.uk/marketing/customer-care/customer-loyalty/keeping-customers-the-importance-of-loyalty
Mandad, H. (2015, September 28). Companies should keep the customers at the centre of things. The Economic Times, Retrieved from http://articles.economictimes.indiatimes.com/2015-09-28/news/66957686_1_customer-technology-crm
McGrath, J. (2016). How McDonald's Works. Retrieved from How Stuff Works website: http://money.howstuffworks.com/mcdonalds3.htm
Roberts-Lombard, M. (2011, May). Customer retention through customer relationship management: The exploration of two-way communication and conflict handling . African Journal of Business Management, 5(9), 3487-3496. Retrieved from http://www.academicjournals.org/journal/AJBM/article-full-text-pdf/41FD05B37348
