296 Strategic Marketing: Planning and Controlwish to retain their customer base and view CRM as a significant tool to
achieve this. Therefore, CRM has a role in the strategic marketing process.Illustrative Example 15.1
Customer management activities
Football clubs benefit from brand loyalty in a way other businesses could only dream about.
The already strong relationship with a club’s fan base can be further strengthened via CRM
applications. CRM suppliers have been busy developing systems specifically for football
clubs. For example, Carnegie Information Systems has supplied CRM to Glasgow Rangers,
Tottenham Hotspur and Feyenoord.
CRM systems offer the potential to develop on-line ticket sales and merchandising.
Additionally, benefits can include access control via wireless cards, reward schemes and the
ability to re-sell tickets.
Source: Financial Times, 2004.Regardless of the technical issues associated with the process, organisa-
tions are likely to undertake the following customer management activities:
1 Targeting: Identifying and communicating with potential customers
and moving these prospects to becoming actual customers.
2 Response handling: Handling sales leads and customer enquiries effect-
ively is fundamental. This normally involves an element of qualifying –
determine the nature/likelihood of enquiry becoming a firmer
commitment.
3 Customer induction: This covers the initial relationship building process
with the customer and aims to make them feel valued.
4 Customer development: Involves developing the relationship with cus-
tomers and may involve upgrades, loyalty incentives and analysis of
buyer behaviour.
5 Complaint handling: Things will, from time-to-time go wrong.
Therefore procedures must be in place in relation to problem reso-
lution. Many systems focus on openness and aim to provide a satisfac-
tory resolution.
6 Retaining customers: Retaining customers is vital and a basic tenant of
relationship marketing. The process aims to establish the reasons for
customer loss, plus win back customers who are ready to defect to
rivals.
The organisation needs a system (often IT based) which combines the
above factors into one integrated system. Having a successful CRM sys-
tem involves being customer focused across the entire organisation.
Ideally, customer service staff should have a single source of customer