Customer Relationship Management

Definition

Systematic methods for maintaining and developing customer relationships.

Historical Background

2000s: CRM systems enabled refined relationship management.

Example

From new customer development to retention, full lifecycle management. Like making friends.

Formula

Customer Loyalty = f(Satisfaction, Trust, Dependence)

Core Concepts

Customer value mining: improving loyalty for repeat purchases and referrals.

Extended Applications

Development: market research, targeting; maintenance: regular visits; service: problem solving; analysis: value assessment; loyalty: membership, rewards.