Customer Relationship Management ( Crm ) Essay

3160 Words13 Pages
Introduction: The old adage “You cannot manage what you cannot measure” Thus, when you want to manage customers, you should understandhow to measure the value contribution each customer makes to a firm.Customers are the heart of any firm, Without customers, a firm has no gain then no market value.There are different definitions of customer relationship management (CRM ) depending on the perspectives looked at. An important concept in CRM is customer value because It refers to the economic value of the customer relationship to the firm. "Customer value is essentially the financial value of the customer relationship to the firm. It can be expressed in terms of contribution margin or net profit".Thus customer value is defined in the marketplace not in the factory or an agency. Firms interest in customer value because it use to evaluate their marketing efforts.However, it is a general term which does not refer to any specific time or duration .As a marketing metric, customer value offers an important decision help, on other hand its ability to evaluate marketing effectiveness. A firm can both measure and optimize its marketing efforts by combination customer value at the pulp of its decision-making process.Thus we can define CRM from a customer value perspective as:"CRM is the practice of analyzing and using marketing databases and leveraging communication technologies to determine corporate practices and methods that maximize the lifetime value of each customer to
Get Access