Free Marketing Dissertations - In Utilising The Databases Of Customer Preferences, A Company Is Able To
In utilising the databases of customer preferences, a company is able to direct and tailor its marketing plan to these attributes. As an example, a travel company such as Lastminute.com may segment its market based on very detailed prior purchase characteristics such as those who spent over £200 on package holidays in Greece. Establishment of smaller groups of customers should help to improve the potential for success of the campaign using highly targeted communications campaigns.
Promotional Objectives
The objectives of the campaign, including sales and communication effectiveness, can be analysed according to what behaviour might be expected of existing consumers. Using CRM, it may be possible to understand a consumers behavioural attributes (e.g. susceptibility to certain types of advertising). Such information can be used to develop realistic campaign objectives.
Communication Strategy and Promotion Methods to be Used
As the idea of CRM is to place the emphasis on the consumer, the technique can be used to develop an effective strategy based on consumer preferences. Specifically, a detailed analysis of the types of media customers use can be found, together with their previous reactions to that media. New media advertising such as email marketing can be expected to be appropriate for customers who booked flights online rather than over the phone, for instance.
With a database of consumers, a company has the ability to target its marketing based on one-on-one level. Using technology, companies are able to develop increasingly sophisticated approaches to its marketing. New media applications such as mobile phones allow companies to send out extremely targeted messages. A mobile phone operator such as T-Mobile, for instance, is able to send out special offer text messages to customers aimed at increasing their spend on top up credit by offering incentives to spend more.
Evaluation
Feedback from the campaign using CRM techniques has the potential to provide organisations with detailed breakdowns in campaign effectiveness. Using technology to gather feedback data is far more feasible now due to the advent of new media. Email campaigns can be tangibly measured by click-throughs, for instance, and methods for recording interest have also become more sophisticated.
In all aspects of a marketing plan, then, it is possible to see the potential benefit and influence CRM can have. Critically, it is perhaps best used to ascertain customer preferences, and to help make decisions accordingly.
Conclusions
As suggested by McDonald (2000) cited by Egan (2004), CRM could, and has been, described in line with the many buzz-words to emerge in the area of consumer research. It is the latest place to be it’s fun, colourful and full of promise.
