Relationship Marketing: Customer Life Cycle, CRM, and Automation

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This report provides a comprehensive analysis of relationship marketing, focusing on the customer life cycle and various CRM models. It begins by defining relationship marketing and its importance, followed by an examination of the customer life cycle stages: awareness, engagement, evaluation, purchase, product/support experience, and bonding. The report then explores different CRM models, including the IDIC model, QCI model, and the CRM value chain model, explaining their components and benefits in managing customer relationships. The report uses East Midlands Trains (EMT) as a case study to illustrate the application of these concepts. It also discusses marketing automation activities across the customer life cycle, along with implementation challenges. The report provides recommendations for improving customer satisfaction and retention, with a focus on the transportation sector.
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Relationship Marketing
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Customer life cycle and different models to evaluate the CRM programmes mange through
this life cycle...............................................................................................................................3
TASK 2............................................................................................................................................8
Recommendation for marketing automation activities should consider the entire customer life
cycle. Besides, explains challenges of implantation may consider areas such infrastructure,
skills etc.......................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Relationship marketing is the potential and effective growth model interns of getting the
best effective process of company. Relationship marketing is the direct response to the
passengers and getting their needs and wants. Besides, it is cased on customer relation
management which helps company to make them happy and satisfied. Present report based on
Relationship management. It will discuss about the different important aspects of company life
cycle and what action should have taken by the company for their passengers. It will also look
upon the process of managing customer relationship process. What factors helps to describe the
effective process of working. It will also discuss about the challenges of implementation these
proposals. For present report will be based on case of East Midlands trains (EMT). It is the
British train operating company which operating more than 80 stations. It provides run bus,
coach, tram services across the country. They provide huge transport services to the customers.
TASK 1
Customer life cycle and different models to evaluate the CRM programmes mange through this
life cycle.
Passengers are the major key sources for success it gives heavy impact on the business
behaviour, company needs to adopt productive plans for products in order to attract the customer
attraction and effective profit revenue for the company (Armstrong, Kotler, Harker and Brennan,
2015). Customer is a rationale they prefer those products and services which is more impactful
for them (Cashmore, 2018). They always identify the product and services on the basis of price,
durability and reliability. Moreover, the focus of the organisation is to get the customer
satisfaction and customer faith towards the company product and services. Customer life-cycle is
a term used to describe the progression of steps a customer goes through when considering
purchasing, using, and maintain the product and services. It is the essential for the organisation to
keep the profit revenue in the market. In order to meet the customer life cycle customer
satisfaction. There are different stages of customer life cycle which includes several elements to
accomplish the customer satisfaction approach (Bilgihan and Bujisic, 2015). It depends the profit
level of the organisation. Moreover, another main objective of the for is to understand the needs
and wants of the passengers in order to accomplish the business objective level.
Customer Life cycle
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Awareness: it is the first process of customer life cycle which begins from the
knowledge of passengers. In this process customer enhance the brand awareness and knowledge.
Customer analyse and watching T.V advertisements in order to check the new product and
services in the market it also looks upon the attractive things which is new in the market scenario
(Bruhn, 2015). Moreover, it is very essential for the organisation to make the clear changes in the
organisations. It is very necessary for companies to make aware passengers about their new
services or products. Through which passengers get to know about the brands new product and
services. Whichever, is make good image ion the customer minds. They will attract towards this
product and services. In present scenario buyers believes on the good experiences from other
passengers. It gives positive impact on the behaviour of customer to select best product from
another.
Engagement: it is the another process of customer life cycle Engagement, before
purchasing product and services main essential part is to get involve into the product
characteristics, features, quality, prices etc (Cashmore, 2018). for example before selection of
transportation facilities. Buyers always prefer to measure the prices and services offering by the
company (Bruhn, 2015). For that East Midlands trains needs to grab customer attraction and
offers some attractive packages and services for their clients. It gives positive impact on the
behaviour of passengers and their choice of selection. In this process passengers are very serious
about their selection process on the basis of different factors. It is the most promising process of
working in customer life-cycle. Engagement process can be done through searching services of
products through various channels of information such as TV, Social media, Newspaper,
magazines (Cohen, 2014). East Midlands trains needs take advantages of online technologies to
grab the customer attraction process. Overall, it gives new effective sources for making good
presence ion the market. For maintaining customer engagement EMT offering high services of
train at good prices of tickets (Cashmore, 2018).
Evaluation: every buyer make differences between different product and services
process. It gives new prominent selection process to the customer. In this process of life cycle
buyer focus on the product which gives them higher satisfaction level. It gives new effective
process of working which is take its decision effective and good (Gummerus von Koskull and
Kowalkowski, 2017). East Midlands trains needs to make their product planning according to
the customer needs and wants. This would help the company to grab customer attraction.
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Through which they get maximum profit revenue income. This is the another process of
customer which needs to focus on the main product. Customer analyse the product and services
on the basis of prices, services, benefits and quality. Customer determine and compare the
services with other companies (Gummesson, 2017). Moreover, East Midlands trains needs to
make their services different from other competitors on the basis of effective product line.
Evaluation is the process of section among different same products.
Purchase: Next process of customer life cycle is purchase, it is the process in which
buyer make its final decision for purchasing. This process is based on analysis of different
product and services in order to meet the needs of passengers. passengers are varied specified for
its comfort level. They prefer only one brand which is beneficial for them or through which they
feel satisfied. Among so many services of products this is the most effective source of process. It
brings new services (Jones and et.al., 2015). East Midlands trains needs to enhance their brand
value by offering new services to passengers. Trains facilities are needs to perfect and
convenient for passengers. On the other side there are very few competitors in transportation
sector East Midlands trains such as bus, cars and aeroplanes. These are the competitors services
for East Midlands trains. These factors or process of customer life cycle is very necessary for the
company to grab customer satisfaction approach. Moreover, another target of EMT is to attract
passengers by providing attractive prices of tickets.
Product and support Experience: this is the process which helps to retain passengers
with same brands. It is called physical evidence which is also known as extra services for
passengers to maintained the long term relationship with existing passengers and make new more
passengers (Cashmore, 2018). It is another effective process to attract customer satisfaction
approach. Customer is very specific and rigid in terms of selection of brands (Lusch and Vargo,
2014). Product experience of the customer decides which brand is productive or not. Customer
select their favourite brands on the basis of company after sales services for buyers. Moreover,
service must be according to the customer needs and wants. Service industry must needs to full
fill the customer satisfaction in terms to get the profit revenue. Moreover, 76% of consumers
view customer services on the basis of trust and company values. It gives new effective services
for the passengers (Payne and Frow, 2017). This also decides that which company is more
beneficial for passengers. EMT should gives productive and well managed services through
which customer get more satisfied results.
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Bonding: it is the last stage of customer life cycle in which they connect with the
company in forever term till they find some best company which is more beneficial from existing
ones. East Midlands trains needs to stable the quality services or facilities of train transportation
in terms to retain the customer satisfaction (Ryu and Lee, 2017). Along with that, it also needs to
analyse the customer actual or present needs to make them more happy and satisfied.
Customer relationship models
CRM models and approaches is beneficial for organisations to manage the customer
satisfaction and company profit margins. Company get helps from the CRM models through
which they easily manage their customer satisfaction approach. Moreover, these models assist
organisations to manage CRM model and their customer retention process (Cashmore, 2018).
There are different CRM models has given below:
IDIC Model
It is the first model of customer relationship which refers that company should take care
of four actions in order to build the building keeping and retaining the long-term one-to-one
relationship with passengers (Ryu and Lee, 2017). That is identified, differentiate, interaction
and customize.
Identify
This is the process in which East Midlands trains needs to analyse the target passengers
and gather their needs and wants from the company. They need to measure their potential
services through which they grab the attraction of passengers. This model of element defines the
importance of buyers through which company can easily target their passengers. Through this
process of working company get help to make effective planning tools process (Cashmore,
2018).
Differentiate
In this component company differentiate their passengers into two process value and
needs. In value company needs to measure their high value passengers which generate more
value for them. Besides, Need differentiate buyers on the basis of their potential needs and
wants. Company needs to grab the current trend and demand in the market accordingly they
prefer to make their product and services (Verma, Sharma and Sheth, 2016). This helps to full
fill the CRM process of the company.
Interaction
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It is the another component of IDIC model of CRM, in which East Midlands trains will
require to interacting with customer to analyse their expectations and their relationship with a
brand (Zhang and et.al., 2016).
Customize: This process in which organisation customize the product and services on
the basis of adopted needs valuation. This overall components help to analyse the customer
satisfaction with company product and services. This model is beneficial to manage the company
CRM programmes.
QCI Model
This model of CRM helps to consultancy firm. This model focussing on the customer
relationship which is essential purpose of the firms. This model relates company into the best
productive manner (Lusch and Vargo, 2014). It defines the importance of passengers and their
demands. This model is very
is very beneficial for the company to make effective changing in the business environment. This
model relates with employees, people and organization (Cashmore, 2018). Company needs to
examine the process of external environment and gives them the best productive support to the
organisations. Moreover, another main objective of the company is to reduce the impact of
adverse effects and make productive product and services for their passengers. CRM process is
starts with passengers and end with the passengers. Moreover, another main objectives of the
company is to take the effective management control. QCI model will improve the customer
satisfaction and employees neds of the organisations. Moreover, main objectives of the company
is to protect the company profit by analysing the process of working (Verma, Sharma and Sheth,
2016). The main concern of the company is to provide high quality services to potential buyers.
CRM value chain model
It is the another model of CRM which helps company to manage customer relationship
programmes and helps to manager the company objectives. Customer relation must be
satisfactory and productive for the company. It provides brand value and buyers value as well. It
mainly focuses on the sales and service functions. For this, company require adopting the best
possible action plan in terms to adopt the best possible action plan. The main purpose of the
CRM value chain process is to build the long term relationship with passengers for getting the
best productive results. Moreover, value chain model refers to productive management tools
which enhance the company brand value and profit revenue process. CRM value chain model
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included five steps customer portfolio analysis, network development, value proposition,
customer intimacy, managing relationship (Samaha, Beck and Palmatier, 2014). This process
full fills the needs of passengers and make them satisfied with the services of organisations.
Moreover, the another major impact of the customer dissatisfaction is reduced the profit growth
of the company (Cashmore, 2018).
TASK 2
Recommendation for marketing automation activities should consider the entire customer life
cycle. Besides, explains challenges of implantation may consider areas such infrastructure,
skills etc.
Marketing automation process makes things faster and productive. To impress their
potential customer needs EMT needs to grab attractive marketing strategies to make productive
and impactful (Verma, Sharma and Sheth, 2016). Moreover, marketing automation relates with
the new technology which enhance the marketing activities and customer satisfaction approach.
In order to adopt productive management EMT needs to adopt productive marketing automation
strategy. Solution of this process is to take some solution measures. Is to make the
Pricing automation strategy
Companies overlook on the pricing automation to yield management revenue which helps
to grab the productive management approach (Your global authority on advertising and media
effectiveness, 2018). Many companies adopt this pricing policies according their customer
willingness to pay. It makes use of automated prices which makes company more compatible
and effective.
Advertising automation strategy
It is the another automation marketing strategy which reduce the long process and adopt
new technology for development. In this strategy company should enhance the advertising
performance to relate the messages with customer (Sarmento, Simões and Farhangmehr, 2015).
It also needs to enhance the concept and techniques to grab the buyers' attention towards the
company product and services (Cashmore, 2018). Along with that, advertisement automation
strategy focus on the services through which customer can easily attract and ready to invest high
amount on the transport services. It gives great impact on the behaviour of passengers in relates
to company profit. For that, EMT needs to invest on advertisement such as on face books, google
ad words, twitter etc. it also helps to enhance the customer satisfaction process. Besides, another
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solution for making advertising impactful company needs to research on the customer needs and
wants. Automation or advanced technologies enhance the scope of advertising through which
company get easily target their passengers (Sarmento, Simões and Farhangmehr, 2015).
Gaining intelligence and driving actions: more important for organisations is that to
connect its business activities with other technologies. Automation process is more convenient
and productive process of automation to influence business activities. Moreover, another major
objectives of the company is to improve the quality of services by adopting automatic process of
working. Such as online train bookings, online food booking. Customer can easily track the train
routes new stations etc. Moreover, EMT also needs to introduce new advanced technologies.
Improve sales: Another strategy which require adopting by the EMT is that up selling
services (Gummesson, 2017). For that, company needs to analyse their own performances and
adopt strategic planning to enhance automation marketing impacts. Make sure the employee
performance or to provides training and development session in terms of attempting the best
possible returns. Moreover, provides some email coupons, contest and sales services for
passengers.
Challenges facing by the company
Lack of skilled staff members: company essential part of production is employees
which has to be skilled and full off technological. While doing the effective management tool it
requires giving the effective resources. Employees should be well qualified or skilled to make
the good presence in the company environment. Moreover, business users unclear or
unconvinced on benefits of CRM. Moreover, another due to change in technologies this will also
give adverse impact on the employee performance. Skilled employees can easily accomplish the
goal and get successful in their task.
Lack of proper technology advancement: technology has been given huge challenges
and changes in the environment without adopting technologies company cannot achieve
customer satisfaction (Jones and et.al., 2015). This will also lead to buyer dissatisfaction
approach. Online strategies make the process easier and productive. This is the another challenge
which EMT facing while implementing Automation strategies. On the other side, it will also
reduce customer attraction.
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Lack of strategic planning: Without strategic planning about and goals and plans
company could not full fill the company objectives and plans. Moreover, this challenge gives
low impression on the behaviour of passengers satisfaction.
Lack of resources: this will also include some action plans in terms of improving the
task implementation. Resources is very essential to implement the process working
(Gummesson, 2017). Moreover, another process of working is the another effective process of
working. In order to enhance the passengers of in order to make the good impact on the
behaviour of passengers EMT needs to adopt effective resources and challenging resources of
funds. To make good impact on customer behaviour.
Passive attitudes towards leisure trips: Customer intension to travel is to get leisure
facilities and comfort level while travelling while in recession times customer invest less amount
on the services. Due to which company profit level will get down. This challenging generally
facing by the company (Samaha, Beck and Palmatier, 2014).
On the basis of above section of recommendation company also needs to adopt cheaper
price of services to meet the goals of customers. Provides Easier and effective marketing
advertisement which helps to improve the customer quality. They also need to improve concept
of company through which customer get attracted towards the company. Moreover, another
major growth factor which company can adopt such as good behaviour, low prices, fast services,
customer relation etc. (Cashmore, 2018). moreover, on the basis of challenges EMT also facing
challenges and profit issues in recession period when customer not interested to pay high
amount. Which makes less impact on the profit revenue (Armstrong, Kotler, Harker and
Brennan, 2015). EMT delivers over 470 trains services every day. The main aim of the company
is to provide best services to their travellers. For that, company main objectives is to maintained
high quality services and efficient train services, reduce journey times and provides fast services
through adopting automation techniques.
CONCLUSION
From the basis above section, it can be concluded that Customer relationship
management is the most essential function of the organisation which enhance the services of
passengers and get their satisfaction level. Present report based on Relationship marketing of
East Midlands trains which is a British train services company. For which it ways discussed the
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customer life-cycle stages which is very essential for the company to understand and adopt
different models of approaches to full fill the customer needs and wants. This will also look upon
the different aspects of approaches. Further apart, it discussed different models of CRM to make
understanding between their potential passengers and recommendation regarding marketing
automation activities.
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REFERENCES
Books and Journals
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Bilgihan, A. and Bujisic, M., 2015. The effect of website features in online relationship
marketing: A case of online hotel booking. Electronic Commerce Research and
Applications. 14(4). pp.222-232.
Bruhn, M., 2015. Relationship Marketing: Das Management von Kundenbeziehungen. Vahlen.
Cohen, T., 2014. Relationship Marketing. Touro Accounting & Business Journal, 26.
Gummerus, J., von Koskull, C. and Kowalkowski, C., 2017. Guest editorial: relationship
marketing–past, present and future. Journal of Services Marketing. 31(1). pp.1-5.
Gummesson, E., 2017. Total Relationship Marketing Renewed.
Jones, M. A. and et.al., 2015. Exploring consumers’ attitude towards relationship
marketing. Journal of Services Marketing. 29(3). pp.188-199.
Lusch, R.F. and Vargo, S.L., 2014. The service-dominant logic of marketing: Dialog, debate,
and directions. Routledge.
Payne, A. and Frow, P., 2017. Relationship marketing: looking backwards towards the
future. Journal of Services Marketing. 31(1). pp.11-15.
Ryu, K. and Lee, J. S., 2017. Examination of restaurant quality, relationship benefits, and
customer reciprocity from the perspective of relationship marketing investments. Journal
of Hospitality & Tourism Research. 41(1). pp.66-92.
Samaha, S. A., Beck, J. T. and Palmatier, R.W., 2014. The role of culture in international
relationship marketing. Journal of Marketing. 78(5). pp.78-98.
Sarmento, M., Simões, C. and Farhangmehr, M., 2015. Applying a relationship marketing
perspective to B2B trade fairs: The role of socialization episodes. Industrial marketing
management. 44. pp.131-141.
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