The paper “ Customer Relationship Management - Developing an Effective Customer Loyalty Program" is a wonderful example of an assignment on marketing. The importance of business relationships, as well as the interpersonal, idiosyncratic relationships within a business, has been documented throughout history. Yet customer relationship management and marketing have emerged as first priorities for managers and marketing academics. The sudden outburst in the interest in this field has been contributed by a number of factors including the increasing globalization, global competition, faster product commoditization and advances in technology, communication, computer technologies, and logistics. These trends have reinforced the increasing need for relationship-based loyalty besides other marketing mix factors on the side of the seller.
To customers, there is an increasing desire for more unique characteristics in relationship-based exchange such as greater flexibility, higher trusts, enhanced cooperation and reduced perceived risk. Thus, in contemporary organizations, both customers and sellers are becoming more interested in conducting business based on concrete relationships (Barry 2006, p. 123). Company profileUtil is a startup company registered as an Australian public company. It is basically a telecom company specializing in telephones, mobile phones, and loyalty programs.
The need to start the company came after the realization of the various gaps in the telecommunication industry in Australia. The company, therefore, intends to address these issues as well as capture market dominance. The short term goal of the company is to introduce unique internet broadband in the company at highly competitive prices. In the long run, the company intends to engage in most if not all areas involved in the telecom industry. Clearly, the company’ s success will be founded on a comprehensive market survey conducted through a detailed marketing plan and marketing plan prior to its commencement.
Even so, the top management of the company has realized the increasing need for customer relationship marketing which is the reason why this report has complied. Aims: To determine the benefits of good customer relationships through a CRM programTo determine ways of developing and implementing a CRM programTo determine the effectiveness of the CRLM programScopeBasically, the purpose of this report is to explore the benefits of establishing a Customer Loyalty and Relationship Marketing program in Util. The report begins by discussing CRLM as detailed by scholars in literature.
This part will specifically tackle the management of value through loyalty programs, customer’ s benefits and sacrifices in the value equation and the benefits of retaining customers. The second part of the report is a brief survey carried out with the aim of identifying how people perceive loyalty programs. The third part of the report gives examples of companies that have integrated CRLM programs. It will specifically discuss some of the benefits and drawbacks of these programs. Lastly, the paper concludes and provides recommendations to the management of strategies that can be adopted to develop and successfully implement a CRM program. Customer Loyalty and Relationship MarketingLiterature-based EvidenceThe American Marketing Association defines marketing as a fundamental organizational function involving a set of processes for developing, communicating and delivering value to the customer as well as managing customer relationships in a way that benefits the company and its stakeholders.
Therefore, the overall definition of marketing underscores the importance of managing relationships in marketing activities parallel to traditional marketing approaches. Customer relationship marketing is defined as the process of attracting, maintain and enhancing customer relationships.
Servicing existing customers is just as important as attracting new ones. Customer relationship marketing is all about cementing relationships with customers and transforming those who are indifferent to become loyal. Customer relationship marketing, therefore, goes hand in hand with customer loyalty (O’ Malley and Tynan 2001, p. 243).