The about an Aspect of Marketing - Speech or Presentation Example

Customers, being the wage payers of employees, are very important for every employee of an organization. Especially, people in the marketing and sales department should be well aware of their importance.

Customers should be treated well, not only when they are making their purchases but also over time since the post-purchase care shown by businesses towards their customers is an important tool to attract customers to be loyal to the organization and repeat their purchases. Existing or Old customers hold key importance for businesses. Studies have proved that the most effective area of revenue generation for businesses is to attract existing customers. But even then most businesses think that once a customer has made the purchase, he or she is bonded with the organization which ultimately results in the loss of customer base and the number of clients or customers for an organization starts shrinking.

Customers are very sensitive to the organization's behavior toward them. There can be many reasons a customer may feel bad about an organization and wishes not to repeat his or her purchase with the organization. They might think that the organization is no more fair or justified with its offering, or the organization is unconcerned with the issues and problems they had from their previous purchase, or a competitor of their previous seller has offered a better product or service. Customers, if find an organization trustworthy, are very eager to repeat their purchase with this organization since it reduces their time for decision-making purchases.

They had an experience with the organization's product or service and they are confident and satisfied with the organization's offering; these things provide them an ease of mind in their purchase decisions which ultimately transform into repeat purchases. It is always feasible for an organization to work for attracting its existing customers since: "Repeat customers spend 33% more than new customers. Referrals among repeat customers are 107% greater than non-customers. It costs six times more to sell something to a prospect than to sell that same thing to a customer (Laura Lake, 2007)".

Before implementing customer relationship management in an organization, management should know, "what is the actual problem with the existing handling of customers that initiated the need for customer relationship management" (Management-CRM, 2007). 

Customer relationship management requires organizations to gather a large amount of database of their customers, their preferences, their needs, their previous purchases, their demographics, and the count goes on. These data are maintained at each level starting from the sales force to the entire marketing department but the amount and scope of data are different for each level. For example, a relationship officer at a bank may keep a record of the business of its client, the usual amount of financing the client asks for, the client’s usual business partner, and an approximate idea about the client’s daily schedule. This will help him to provide his client with the right solution for his financial need at the right place and at the right time.

Customer relationship management implemented in an organization helps it to increase repeat purchases by customers, simplify marketing and sales activities, reduce marketing and advertising budget, and provide better customer service.

This very clearly concludes that customer relationship management enables organizations to increase their revenues with minimal simplified efforts and little care that needs to be taken in handling their customers. Moreover, it also ensures that an organization can easily reduce its efforts that are done in marketing activities.