CRM Principles Customer Acquisition Gain the greatest number of new Best customers as early in their lifespan as possible.

. Customer Retention

Retain and expand your business and relationships with your customers through up selling, cross selling and servicing. Customer Loyalty Offer programs to ensure that your customers happily buy what you offer only from you. Cost Reduction Reduce costs related to marketing, sales, customer service and support. Improve Productivity Enhance your e-business strategies. Models of Customer Relationship Management The Evans and Luskin (1994) model for effective Relationship Marketing Relationship marketing inputs Understanding customer expectations Building service partnerships Empowering employees Total quality management Relationship marketing outcomes Customer Satisfaction Customer loyalty Quality products Increased profitability Assessment state Customer feedback

Integration CRM Strategy Priorities

1. Acquire the right customer. 2. Craft the right value proposition. 3. Institute the best processes. 4. Motivate employees. 5. Learn to retain customers. Acquiring the right customer 1. Sellers resources 2. Customers needs 3. Cost of serving various groups of customers 4. Potential profit opportunities 5. How customers define value and how to meet those expectations 1. A value proposition encompasses the products, services, ideas and solutions that a business marketer presents to the prospect/customer that is designed to solve the customers problems. 2. They can be generic or customized Motivating emplo yees Dedicated employees are the key to a successful customer relationship strategy. The best approach is to: 1. Hire good people. 2. Invest in them to increase their value to the company and its customers. 3. Develop challenging careers and align incentives to performance measures. Retaining customers Retain customers by: Providing superior value (more than expected) to ensure high satisfaction. Nurturing trust.

 Developing mutual commitment. If possible, helping customers grow their business.