Importance of Customer Relationship Management in Managing Customer Lifecycle

Running head: CUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENT
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1CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management is very important in the current business world. It
refers to the approach, strategy or practices of managing the interaction process of a company
with its existing and potential customers (Baker 2016). Nowadays, different companies are
making use of different tactics and practices in order to deliver right product and services to
the right customers along with right benefits and features. The competition is more intense
than ever and therefore, the quality is better. However, in order to become a popular and most
preferred organisation, these companies keeps on enhancing and managing their relationship
with the customers by delivering quality products keeping the needs and trends of the
customers in mind. This paper would shed light on the importance of Customer Relation
Management with particular emphasis on managing the customer lifecycle. The argument
would be based on the notion that effective management of customer lifecycle helps the
businesses in retaining valuable repeat customers.
Customer Life Cycle refers to the measurement of the various metrics related to
customers that, when assessed and analysed for a certain period of time, indicates how the
business is performing. In the customer relationship management, the CRM, the customer life
cycle is used for describing the progression of the steps that a customer undergoes while
considering or purchasing or using and maintaining the loyalty to a specific service or
product (Leeflang et al. 2014). The present date’s CRM puts the customers at the core of
everything that a business does. CRM enables the organisations for tracking and gathering the
information that are related to the needs, wants, preferences and history of the customers and
then they use that information and data for providing a better customer experience (Orenga-
Rogla and Chalmeta 2016). It is to note that a high quality customer experience is not a one-
time option which the businesses could present in front of their customers and then forget
about. It is a process that is ongoing and it needs to be implemented at each and every step.
For this purpose, the businesses need the customer lifecycle management.

2CUSTOMER RELATIONSHIP MANAGEMENT
The CRM is referred to be the tool that helps in ensuring that the customers are
receiving better quality and personalised every time (Eichom 2018). As one of the marketing
strategies, the customer lifecycle management helps in creating an effective one to one
customer journeys, and providing them with improved and better brand reputation and
customer loyalty. With the same, they also taps into the motivation which help in turning the
leads into the brand evangelists. It is also to mention that the model of customer life cycle
management could be broken into many steps and they are: Approach, Acquisition,
Development, Retention and Loyalty (Galvo et al. 2018). Firstly, the businesses locate the
potential leads and demonstrate the value of the service or the product that is being offered
and then show the leads how they could become the customers. Secondly, the leads then enter
the pipeline of the sales. Along with their progress, the businesses would need to be able to
continue to demonstrate the value of the product and at the same time, also address any of the
concerns that might takes place. Thirdly, the leads that reach at the end of the pipeline
complete the sales of their products and then become the customers. The businesses then
focus on further development of the relationship with the customer by means of keeping a
follow up with the customers and soliciting the feedbacks on the product (Kumar and Pansari
2016). Furthermore, the next step is of retention. In this step, as the customers provide
information, the businesses assesses the data so that they could then create a more
personalised experience for the customers. Lastly, the end step of the customer lifecycle is of
creating the brand advocates who continue to do the business with the firm as well as also
promote the very firm on their own social circles. For providing such level of services, each
and every businesses is required to depend on different technologies. Advanced customer
relation management is the best place to start from. It empowers the businesses to concentrate
on their customer base as well as to handle their own communications and data in proper
manner. With the same, as because the best customer relation management options are