Since the origins of the concept, marketing has always been concerned with customer requirements. But there was little emphasis on customer contact and service because the industrial revolution allowed a mass production at low costs. The attention was on the production and the market share. This traditional transactional marketing model was shaken about twenty five years ago for two reasons. First, product differentiation became more important as the number of products available increased. Second, the growing IT capacities allowed a more elaborate segmentation of the markets. Consequently, a new paradigm arose: the one of relationship marketing. The scope of relationship marketing is broad and encompasses a network of stakeholders (Gummesson 1999). Among these stakeholders are the customers. The relationship marketing concept relates to ‘one-to-one' marketing, seeking to fulfil the needs and wants of each individual customer, in contrast with mass marketing. One-way communication model has been replaced by a two-way communication, blurring the line where the customer begins and the organisation ends. Peters and Waterman (1982) first introduced the idea of focusing on customer retention on a long-term scale. Accordingly, the customer relationship management (CRM) emerged with the aim of retaining and developing its customers. A few years ago, the development of Internet has begun to affect media consumption and buyer behaviour (Chaffey et al. 2006). As CRM is by definition customer-centric, the concept of e-CRM appeared to follow this particular trend changing customers. This paper will discuss to what extent e-CRM is different and effective compared to traditional CRM.
[...] The electronic version of CRM is more interactive and allowed the automation of the data reported (Mollard 2001). But fundamentally, e-CRM indicates the same process than CRM but transposed in the Internet technologies. This can be considered as a new activity only if we take into account the new applications it provides. The e-CRM adds mails, website, wireless, virtual communities, voice, data warehouse etc. but they are just new channels for a same goal as before in CRM: retain customers through a sustainable personalised relationship. [...]
[...] This paper will discuss to what extent e-CRM is different and effective compared to traditional CRM. Definition, benefits and scope of CRM The Institute of direct Marketing (2007) defines CRM as discipline of organising business resources to enhance and personalise each customer encounter as part of a long-term strategy of profitable retention”. CRM focuses on customer satisfaction in order to retain them. Customer retention has become very important because of the obvious advantages it presents. It can be 5 to 10 times cheaper than acquisition, it protects the company from its competitors and enhances customer commitment (Revuelta 2007). [...]
[...] In depth because it is possible to share a huge amount of information on the web. An e-mail can certainly not contain more information than a classic direct mail but it can drive to a website where a lot of information is accessible. An Extranet is sometimes used, particularly in B to to protect the content some online pages from customers who are not concerned by the information. Relationship is also improved in breath as the contact points with the customers are more frequent. [...]
[...] To what extent can it enable an organisation to retain and develop its customers? Since the origins of the concept, marketing has always been concerned with customer requirements. But there was little emphasis on customer contact and service because the industrial revolution allowed a mass production at low costs. The attention was on the production and the market share. This traditional transactional marketing model was shaken about twenty five years ago for two reasons. First, product differentiation became more important as the number of products available increased. [...]
[...] These forums are dedicated to special interests groups who share their impression, ideas and judgements on Internet. Virtual communities represent a good opportunity for companies to improve their relationships with their customers. This is normally a ‘customer to customer' communication. By definition, companies cannot interfere in this type of communication. But on the web, this become possible. In fact, companies can use it in their CRM strategy, either by proving community facilities on the site, or by integrating the community of other relevant organisations. [...]
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