Philip Kotler, the father of marketing, defined Customer Relationship Marketing as “a management process of acquiring customers’ loyalty by understanding their needs, retaining customers by fulfilling their needs and meeting their expectations. In addition, an organization has to focus on specific marketing approaches. The process involves complete commitment on the part of the entire organization in evolving and implementing relationship strategies that can be rewarding to all concerned.”
Social Media Marketing and Customer Relationship Marketing enjoy a rich synergy with each other. CRM incorporates commercial and client specific strategies via various avenues such as employee training, marketing approaches, relationship building and advertising. To build a long-lasting relationship with customers, an organization has to focus on customer value and customer satisfaction. Loyalty comes out of immense satisfaction and loyal customers are likely to patronize a company’s products or services for a long time. In a nutshell, CRM is an umbrella term encompassing the virtues of customer value and customer satisfaction.
Customer value is dependent on how a customer perceives the benefits of an offering and the sacrifice that is associated with its purchase. So, mathematically, it is the difference of perceived benefits and perceived sacrifice. To strengthen the customer base, many companies explore new domains and foray into the premium and mid-marketing segments. ITC, a tobacco-to-hotels conglomerate, introduced a range of shampoos and soaps with the brand names “Fiama Di Wills” and “Vivel” to reinforce its position. Surf Excel, a well-known detergent brand from HUL, released a new version of its product called “Surf Excel Matic” that specializes in removing tough stains in the washing machine itself. We find a similar train of remarkable thoughts in admirable marketing gambits of established organizations.
Customer Satisfaction is the extent to which a product’s perceived performance matches a buyer’s expectations. Well, the essence of this engrossing marketing concept lies in relating it to a real world scenario. Microsoft, the leader in delivering excellent operating systems had to face the wrath of its loyal customer base when Vista’s reputation was marred. Despite the accompanying hype, Vista’s reputation was in shambles. However, Microsoft was smart enough to introduce a competent operating system- Windows 7. So, any organization should eventually rise to the occasion when it matters the most, especially in a ‘perform or perish’ situation. As the legend says, Microsoft continued to relish its supremacy in developing operating systems and came up with an innovative cloud computing technology-“Azure”. Today, Microsoft Azure cherishes its presence across five continents.
More often than not, many people misinterpret Social Media to be an effective advertising medium, hence it becomes imperative to emphasize that Social Media is an integral part of an organization’s business. Social Customer Relationship Marketing is the future of improvised marketing. To succeed in this eternal competitive world, a company has to essentially focus on Customer Satisfaction Index (CSI). Innovation in products, innovation in technology, commitment and diligence assist a company to scale the summits and reach the pinnacle of success. An indisputable way to ensure a truly enterprising business is by embracing Customer Relationship Management principles and delving deep into the intricacies of Social Customer Relationship Management.