Abstract

Background

What is CRM?

Integration of Front and Back Office Systems

Integration of CRM Strategies with the Internet

Practical examples of CRM Strategies on the Internet

Conclusion

References

 
Years ago businesses knew their customers personally, understood their needs and provided personalised service.  As businesses grew this personalised service was replaced by mass marketing. However as consumers have become more sophisticated, mass marketing has proved to be ineffective and expensive.  This "evolution" of consumers is best depicted as follows (Michael Jackson, Feb 1999):

• 1950’s - Era of Telling (Dogmatic)
• 1960’s - Era of Selling (Revolution)
• 1970’s - Era of Choice (Differentiation)
• 1980’s - Now (Total Satisfaction)
• 1990’s - “I” Generation (Demand)

Advertising was the earliest form of mass marketing and in the 1950s the core message was  "we have what you need".  During the 1960s consumers became increasingly fashion conscious and this allowed marketers the opportunity of developing brands.  The core advertising message was “desire and pleasure”; this was probably pioneered by Coke.

The 1970s was a decade of rebellion and consumers were looking for choice.  It is during this period that direct marketing was first established as a marketing tool.  During the 1980s customers started to demand total satisfaction.  Brands were developed through product line extension and the first mega-shopping malls were developed.  Customers were prepared to pay more for convenience.  In the 1990s we have seen increased competition not only on a regional scale but also on a global scale.  Consumers are no longer content with mediocrity!  Quality of product and competitive pricing is the norm; service and choice are demanded.  Customers expect businesses to know their needs.

"Deregulation, diversification and globalisation had stimulated a dramatic rise in competitiveness, making it a absolute necessity to better manage customer relationships at every point of contact, and to acquire and build loyalty among those customers deemed most profitable"
Says Franc Trivella, Director SAS Institute. (Intelligence Vol 5 No 10 1999)

These changes have been largely driven by developments in information technology, particularly the Internet. Businesses have to develop new strategies to keep existing customers and attract new ones. 

Salvatore Larosa, (Business Consultant, Cap Gemini Italy) explains.  ‘The key concept to the success of the Internet as a business tool, is its single user relationship and multimedia channels that make it easy to offer interesting and attractive services to single potential customers at little or no cost.”
 

What is CRM ?..........