What is transactional marketing?
Focus on winning customers
focus on single sale, not customer service
emphasis on product features, not benefits
short time scale
limited customer loyalty
Based on Gronroos, 1990
What is relationship marketing?
focus on customer keeping
want to get multiple sales, long-time scale
emphasis on product benefits
high customer service and contact to ensure loyalty
By Gronroos, 1990
How does loyalty impact profitability?
loyalty drives profitability because customers become mre profitable over time due to increased purchases, better operating efficiency, profit from referrals (WOM), profit from premium prices, good will
Reichheld 1996
Explain the concept of the loyalty ladder.
In relationship makreting customers move up the ladder and become more important to the company, the higher up they are. Fromlowest to highest: Prospect, Customer, Client, Supporter, Advocate, Partner. Along the ladder, the marketing dept. needs to focus on the appropriate actions for the respective situation (establish and maintain relationships)
By Payne et al. 1995
What is CRM?
Customer relationship marketing: a strategic approach to create improved shareholder value through developing appropriate relationships with key customers and customer segments
by Payne and Frow, 2005
stages: attract, retain, maintain and terminate
What opportunities does AI offer for CRM?
Automate and enhance many CRM processes like: intelligent evaluation of customer data base, automated interaction with customers, optimize algorithm, AI chatbots
By Hopkinson and Singhal, 2018
Last changed5 months ago