Ch. 21 - Customer Relationship Management

According to the MKTG 3 textbook, Customer Relationship Management (CRM) is a "company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups." which means that a company uses its marketing techniques to solely focus on specific groups instead of just planning a marketing strategy that targets a large mass without any certain direction.  I love the example that is used in the textbook. It helps demonstrate what CRM is.

Rifle Approach targets communicating with each INDIVIDUAL customer

Shotgun Approach  scatters messages to whole SPECTRUM of people with mass media

Basically it starts with a single customer. You gather information through many means and any information is helpful. This is vital because 80 percent of a company's revenue is generated by 20 percent of its customer. So every single contact or customer is important to the business. Knowing what they think and getting some kind of information about target markets, it is easier to put out a product that they will like.

Companies now a days have FACEBOOK, which has over half a BILLION users. There is so much information on there that could reveal a lot of things to businesses.