Compare and contrast the three types of customer relationship marketing strategies

Question

What will be an ideal response?

Answer 1

The three types of customer relationship marketing strategies are mass-personalization, mass-customization, and customer relationship management. In each strategy, each customer is treated as unique and the goal is to build a more personal relationship between the business and the customer. The only difference in these customer relationship marketing programs is the level of company effort and customer benefit. As a result, it is necessary to have enough customer data to identify this customer individually by name, needs, buying behavior and individual product preferences. The level of customer data required in the database depends on the customer relationship strategy to be used.
(1 ) Mass personalization — The first level of customer relationship marketing that recognizes individual customers by name and buying behavior. This means the business recognizes the customer by name, buying behavior, and segment needs. The database will contain information used to build personalized marketing communications for targeted customers. The goal is to personalize the customer interaction between the company's products and services, extending benefits to target customers based on the company's opportunity to grow customer loyalty, and customer profitability.
(2 ) Mass customization — Some customers within a segment are willing to pay more for extra benefits, however, it is difficult to offer customers in the same segment different product-price configurations. Mass customization allows for this because the marketing mix is customized to a level of customer product preferences, extended services and process. Mass customization allows each customer to build a custom product to meet his or her specific needs, personal constraints, and price considerations. Customers build the product around their needs and the company delivers it to their specification.
(3 ) Customer relationship management — When the potential exists for high levels of both customer value and company value, a customer relationship management program could be justified. The ultimate goal is to build one-on-one customized relationships between a business and individual customers. There are several steps involved in building a successful customer relationship program from qualifying potential customers, understanding their needs, preferences, and usage behaviors, building customized solutions for them and tracking experiences to ensure high levels of customer satisfaction and loyalty.