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CRM for 21st Century

You are a marketing consultant (as before). You get a call from the president of a medium size service firm. (Choose your industry and/or company.) The VP of marketing has rebelled. The VP says: "This CRM is nonsense. We have loyalty programs and we're polite. We even give adjustments most of the time

"But this is 2009. Customers are fickle. All they care about is price. We might as well reposition ourselves as the bargain service with the lowest prices. Why bother with CRM?

You are hired (as usual, with a generous retainer) to answer comment on the VP's statement. Oh yes, the president says. "When you write your report please show us how we might use some of the new-fangled 21st century ideas. Should we be in (shudder) Facebook? And what's all this about customer engagement? Isn't it enough that they like us?"

Your assignment: Write a business memo to answer the President's question. As usual, keep the background very short.

Do not write definitions. Instead, apply the concepts. Instead of defining customer engagement, you would say something like, "I believe your firm can engage customers by...." And/or "Customer engagement is/is not an appropriate goal for your firm because....

Excluding your title page, your paper should be approximately 3 pages (750 words). Remember to cite sources correctly.

Solution Preview

To: The VP of Marketing
From: Marketing Consultant
Date: August 28, 2009
Subject: Application of CRM in 21st Century
I believe Customer Relationship Management or CRM is a method or process through which additional knowledge about the needs and behaviors of the customers can be gained, so that better and stronger relationships can be maintained with them (Mithas, Krishnan & Fornell, 2005, pg. 167).
In a service organization the implementation of CRM is an essential tool to understand the nature of the customers.
Response to VP:
In this 21st century, customer is the king and in today's competitive business background, the recognition of this fact is very important for your company's success (Arthur, n.d.). In this highly changing and competitive environment having loyalty programs and being polite is not sufficient to retain the customers and create a competitive advantage. Services are intangible and customer cannot evaluate these services before buying it (Kotler & Keller, 2009). Due to this concern, he needs a program in which he can assess the effectiveness of services and vice versa. CRM is viewed as a process that will help in bringing together many pieces of information regarding the market trends, customers, marketing effectiveness, sales and responsiveness (Mithas, Krishnan & Fornell, 2005, pg. 168).
In this 2009, apart from the low prices of the services the customer is also concern about the quality and response of the company for their feedback (Kotler & Keller, 2009). With the help of this CRM process you can facilitates businesses in using ...

Solution Summary

The solution examines CRM for the 21st century. A memo for the VP of marketing is given.