CRM replacing traditional marketing

Posted on January 24, 2006
Filed Under Uncategorized |

When I first read this paper about CRM (link via CRM Blog) I thought it was a square peg round hole kind of thing, the notion that CRM was replacing traditional marketing. However, in reading it again it became clear what Prof. Payne is talking about, summed up nicely in the intro:

Thus the focus is shifting from customer acquisition to customer retention and ensuring the appropriate amounts of time, money and managerial resources are directed at both of these key tasks. The new CRM paradigm reflects a change from traditional marketing to what is now being described as ‘customer management’.
Put another way, prior to the availability of technology solutions for customer management and interactive marketing it just wasn’t feasible for large companies to adopt fine grained marketing practices. The other half of this argument is the notion that the modern enterprise is capable of measuring everything that it automates, and with that automation comes a radically better performance benchmarking practice. Historically, marketing organizations have relied on sampling techniques for adoption and impact measurement, modern CRM practices built on technology allow for broad measurement as opposed to samples.


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