3. What is Relationship Marketing?
Long term strategy to build
relationships with individual
customers.
4. Definition of RM
Consistent application of up to date
knowledge of individual customer to
product and service design.
RM focuses the firms attention on
customer retention with a view to build a
long term relationship with the customer.
5. Comparison
Traditional Marketing
• Transaction based.
• Focus on single sale.
• Quality is concern of
production.
• Less emphasis on service.
Relationship Marketing
• Focus on customer relation.
• Continuous customer contact.
• Quality is concern of all.
• High customer service.
9. Process of managing the detailed information
about individual customers.
Carefully managing all the customers ‘touch point’
with the aim of maximizing customer loyalty.
17. C R M
Functioning
targets
Ubiquity
1 to 1
marketing
Real time
updates
Better analysis
Buying Patterns
&
Demographics
Revenue
enhancement
Single
customer view
Cost Reduction
18. Still, why to spend on
Customer-retention rather
than customer acquisition
???
19. Acquisition or Retention
Acquisition
3% increase in profits
Cost is very high
Life cycle is short
Short term profit
Unpredictable value chain
building
Retention
17% increase in profits
Cost is very low
Life cycle is long
Long term profit
Value chain building