Strategic Marketing: Planning and Control, Third Edition

build and enhance strong relationships with customers and other related

groups (e.g. suppliers). Subsequently, CRM should assist this fundamen-

tal process. From a marketing perspective a relationship has several key

drivers, these are summarised in Figure 15.2.

300 Strategic Marketing: Planning and Control

Targeting and logisticsFulfilment

Developing and

maintaining relationships

Sustaining

Figure 15.2 Recovery Rewarding
Developing and
maintaining
relationships

The above diagram summarises the key elements associated with develop-

ing and maintaining customer relationships. CRM needs firstly to target

potential customers. Note: Not all customers merit attempts to build rela-

tionships. The customer may simply be a brand-switcher who continually

changes supplier or who generates insufficient revenue to make relation-

ship efforts worthwhile. The basis of targeting is segmentation, with the

organisation needing to identify high value, frequent use customers and

those most likely to convert from enquiry to purchase. Fulfilment and

logistics concerns the meeting of customer expectations, and is often seen

as a pillar of relationship marketing. It is important to manage expectations

(e.g. do not set unrealistic delivery dates to get an order). Commitments

made to customers should be credible and achievable. There is an old say-

ing in sales management – ‘Under promise and over deliver!’ It should be

noted that fulfilment is the responsibility of the entire organisation, not just

customer service staff. Sustaining a relationship is about building trust

with a customer. Hence, it is important to have an open, two-way method

of communication. For example, customers should be surveyed regularly