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Sarah Worsham / Feb 17, 2009

Don't forget the Relationship in CRM

relationshipsolarikonDoes your company have CRM (Customer Relationship Management)?  CRM used to be about a business process of managing a relationship with a customer, but now it often just applies to a piece of software that stores customer names and some information about them. During this recession, there is an opportunity to actually form relationships with your customers.  As Lee Odden from Online Marketing Blog says:

As companies decide where to invest their limited marketing resources, there is a distinct opportunity to focus on investing in relationships: with their customers, prospects, employees and business partners.

So instead of using your CRM to blast out targeted email campaigns, use CRM to form long-lasting relationships with your customers.  Reach out to them and see if you can help.  Companies and people who connect with their customers will be remembered much more than companies that just sent out lots of advertising.  Best of all, building relationships is easy on the wallet – just takes a bit of your time.

(photo by “Solar ikon” @ Flickr CC)

Technorati tags: business, business strategy, crm, customer relationship management, customers, marketing, marketing strategy, online marketing, internet marketing

Sarah Worsham / Jul 17, 2008

Internet Strategy Forum Summit – Evolution of CRM

Presented by David Placier, VP of Marketing, Disney.com

Definition of CRM – Customer Relationship Marketing

  • Differentiating marketing treatment and/or service level for an individual or group
  • Differentiating in order to optimize customer value to company
  • ROI based
  • Targeted effort, not mass

Customer value = income you receive from an individual – expenses acquiring, servicing and marketing to individual

When CRM started isn’t clear – Local shops use CRM by giving you different suggestions and service depending on what they know about you from past purchases and visits.

Direct mail credit card acquisitions change their offer based on your credit score, your assets, your zip code, public data about you.  They change their investment and marketing treatments based on this information.

Airline customer loyalty programs give premium seats and have separate lines for their best customers.

Online

Advertising – display location – where you surf may define which treatment group you get, but site experience is not differentiated by customer value or characteristics.

Search advertising is differentiated by treatment group – what you are saying, where you are landing, what you are searching for.

Product recommendations are characterized by previous choices, but maybe not by value and this experience is available to anyone.

With social media, find opinion leaders to treat differently and they will buy more, say more and influence more.

Future of CRM

  • Personalization
  • Optimization
  • Addressability
  • Commonly available data
  • Cross device/platform continuity

Technorati Tags: social media, crm, customer relationship marketing, internet strategy summit forum

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About Sazbean


Sarah Worsham (Sazbean) is a Webgrrl = Solution Architect + Product Management (Computer Engineer * Geek * Digital Strategist)^MBA. All views are her own.

Business + Technical Product Management

My sweet spot is at the intersection between technology and business. I love to manage and develop products, market them, and deep dive into technical issues when needed. Leveraging strategic and creative thinking to problem solving is when I thrive. I have developed and marketed products for a variety of industries and companies, including manufacturing, eCommerce, retail, software, publishing, media, law, accounting, medical, construction, & marketing.

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