Marketing Management, 16th Edition

Managing Customer Relationships

Companies are using information about customers to build long-term relationships.32 Customer relationship management (CRM) is the process of carefully managing detailed information about individual customers and all customer touch points to maximize loyalty. Managing customer relationships is important because a major driver of company profitability is the aggregate value of the company’s customer base. A related concept, customer value management, describes the company’s optimization of the value of its customer base. Customer value management focuses on the analysis of individual data on prospects and customers to develop marketing strategies to acquire and retain customers and drive customer behavior.33 Consider ...