Objectives of Customer Centric Approaches in Relationship Marketing

Abstract

A primary purpose of customer-centric marketing is to collect, compile and make the best use of customer information to better manage customer value and firm profitability. This paper reviews the central objectives of customer centric approaches such as CRM. Beginning with an effective customer segmentation scheme, each of the main goals of CRM are discussed in turn including increasing customer retention, acquisition, satisfaction and loyalty, differentiating customer value, developing customers via up-sell and cross-sell opportunities, and finally decreasing costs associated with low response rates. Implications for predictive modeling and company resource allocation decisions are discussed.

Key Words:

• Relationship marketing
• CRM
• customer value
• customer information
• cross-selling
• customer retention
• firm profitability