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The customer-centric economy
CRM supplement | Kim Cotton
In 1965, Procter & Gamble reached 80 per cent of its US target
market with just three 60-second TV commercials. Today, it takes
97 commercials to achieve the same results.
The advent of powerful technology and global economies of scale
are rapidly shifting the business landscape. It’s the customer—not
the supplier—who is in the driver’s seat, say industry experts.
To win, grow and retain customers, companies are being urged to
restructure their approach to market. Rather than shouting a one-
size-fits-all message at customers, it’s about inspiring open
communication and dialogue through multiple online and offline
channels. Information gleaned from these interactions can then be
used to tailor services to suit customer needs. This in turn creates
customer loyalty, retention and up and cross-selling—the stuff
profitable relations are made of.
To steer the customer-driven model, companies are increasingly
relying upon CRM (customer relationship management)
technologies and programs.
When implemented correctly, CRM can bring dynamic change
across an organisation. However, CRM is a young concept and
companies are getting burnt in their enthusiasm for first-mover
advantage. Before jumping on the CRM band-wagon, CEOs need
understand the ramifications of the customer-driven economy and
CRM’s role in the transformation of their business.
FROM SUPPLIER TO BUYER
The traditional blanket communicat