Show in doc file

  • Category:
  • Document type:
  • Level:
    High School
  • Page:
  • Words:


Topic summary

Chapter 6: summary

Customer relationship management (CRM) is fundamental in using technologies and business practices to analyze data and manage interactions of customers. I learned that the use of e-CRM systems is vital in sales growth, customer retention and business relationships. In the new media, the contact points can be live chats, direct mail or social media such as LinkedIn, Facebook and Twitter. Through customer centricity, it is possible to identify target customer groups with similar attributes and maximize long-term profit potential for the firm and benefits to the customers (Berman, 2006). The management of customer segments includes advisors and owners as well as market segmentation and product-centric analysis. While e-CRM is aimed at improving brand loyalty, Chow (2012) observes that it involves management of online services to deliver customer service. I learned that based on disclosed or inferred customers preferences stored as customer profiles, e-CRM enables ‘sense and respond’ communications to deliver personalised emails or web-based messages.

E-CRM is supported by permission marketing through the classic model in a number of ways. First, it attracts customers to company website, social presence such as Facebook or partner microsite (Edwards, 2011). Second, it is incentivised in order to gain contact and profile information. Third, it captures customer information to maintain the relationship and profile the customer. It then maintains dialogue through the use of online communications to achieve repeat site visits. Finally, it maintains dialogue consistent with customer’s profile using email, social media messaging or where cost-effective, direct mail or outbound phone contact. I also learned about personalisation technologies which enable customisation of emails or direct mails. Personalizing messages engenders some good results where messages relevant to guests checking into the hotel employed new email marketing capacities (Nguyen et al., 2007). These are mails sent to individuals or related groups, However, they are customised web content that can be displayed or distributed using push technology.

In e-CRM, the company can review customer advocacy through techniques such as Net Promoter Score (NPS) and development of programmes to encourage customer advocacy. Besides, loyalty programs extend from program launch to include creation of reward activities, new rewards and maintenance. However, CRM systems may fail to meet customer expectations, demand large capital investment and face inadequate customer demand (Chow, 2012). Development of an independent customer community may give additional benefits since the community will be more aligned with company goals and customer brand experience. Nevertheless, management of customer value through customer lifetime value and Recency Frequency–Monetary (RFM value analysis) is a core technique for targeting marketing programmes at customers who will generate the most future value for an organisation. Moreover, the data environment handles complex processing to scale revenue and have a single view of customer (McCall & Voorhees, 2010). Besides, firms such as hotels can reduce on annual operating expenditure, and are able to accelerate real-time communications and dynamic content to customers. In conclusion, the development of online communities through social networks, particularly Face- book company pages and LinkedIn groups or independent communities linked to the company site, is a key part of social CRM.


Berman, B. (2006). Developing an effective customer loyalty program. California Management Review Fall, 49(1): 123-130.

Chow, L. L. (2012). InterContinental Hotels Group: How personalization is driving growth. WARC.

Edwards, C. (2011). Tackling corporate reputation with social media, presentation by Cory Edwards, director of social media and reputation team (SMART) February 2011, available to view online at

McCall, M. & Voorhees, C. (2010). The drivers of loyalty programs success: An organizing framework and research agenda. Cornell University.

Nguyen, T.H., Sherif, J.S. & Newby, M. (2007). Strategies for successful CRM implementation. Information Management & Computer Society, 15(2): 102-115.