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Customer Relationship Management

Part 1. Marketing Strategy

  1. V. Kumar

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem01015

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Kumar, V. 2010. Customer Relationship Management. Wiley International Encyclopedia of Marketing. 1.

Author Information

  1. Georgia State University, Atlanta, GA, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

Customer relationship management (CRM) refers to building one-to-one relationships with customers that can drive value for the firm. This manuscript discusses proven CRM strategies that companies can use as means of effective customer management (CM). The continuing evolution of CM is made possible by understanding the interactive relationships that develop between firms and customers and among customers themselves. Firms will increasingly be able to customize marketing messages to larger target audiences on the basis of the customer's expected response and the customer's value to the firm. By following the CRM strategies discussed here, firms can reduce overall marketing costs, increase overall customer response rates, and, most importantly, increase overall customer and firm profitability.

Keywords:

  • customer relationship management;
  • profitable loyalty;
  • customer lifetime value;
  • resource allocation;
  • multichannel customer management;
  • customer referral behavior;
  • profitable customers