Customer Relationship Management Techniques

Customer Relationship Management Techniques

Introduction

The understanding of the customer relationship management techniques is essential in the development of an organization’s promotional activities and in setting of sales targets. It is caused by the fact that the customers’ relationship management will enhance the promotion of marketing performance in the organization; thus, enhancing the maintenance of high customers’ loyalty to the organization. The main context of current study was in the determination of the manner in which Sigma-Aldrich Natick, the company under review, could employ various methodologies and techniques available to it to enhance its customers’ relationship in the currently changing digitalized economy. Sigma-Aldrich Natick in its operations has often ensured that it conducts itself solidly in a manner that would enhance adequate customer relationship management with its clients. Current final report seeks to present to the company the various opportunities by which it can enhance its customers’ relationship management techniques for an ensured attainment of maximum sales revenues and profits. As such, current final report shall be based on the various presentations, analysis and studies that have been conducted in relation to the determination of the techniques that can be employed to achieve the customers-relationship management goals of the organization.

Research

The understanding of the various customer relationship management techniques that can be employed by the company involved the determination of various strategies as employed by other related firms in the industry. There were researches conducted for companies, such as Nike and L.L. Bean in determining their approach to a Hybrid B-to-C framework of market analysis. The studies were concerned with the determination of the strategies that the two firms have used in maintaining customers’ loyalty, so that the same could be applied in the context of Sigma-Aldrich Natick.

In the study regarding the strategies adopted by L.L. Bean, the key finding was that the company always ensured that it maintained a strong relationship with its clients even after making sales of products to them. Such relationship was mainly enhanced through the provision of after-sales services by the company to the clients. Subsequently, the company made customers’ satisfaction a priority by focusing on the delivery of quality products and replacing the products returned by clients in case they did not meet the set company quality standards.

In this line, the research was guided by the main question in relation to how the company reached its clients in seeking to obtain their feedback for services offered to them. Subsequently, it was discovered that L.L. Bean had established several stores in different locations in the country; thus, was able to cater for the needs of the customers within the shortest time possible. The locations for the firm’s products were, however, determined by online sales conducted by the firm. In response to the feedback, the company put its clients on a mailing list for the receipt of its products and asking the clients to provide feedback and reviews.

In the research study that was conducted on Nike, the concern was similar to the previous one: determination of strategies employed by the firm in retaining its clients. The key findings for the study were that Nike used an emotional branding approach for developing the customers’ loyalty. In accordance to such approach, it utilized aspects such as heroism in its advertising coupled with the recognition for its brand of products to inspire the clients. Additionally, it was established that the strategies made customers feel like heroes by wearing the company’s products as opposed to when wearing the competitor’s products.

Subsequently, it introduced a new product – Kobe 9 Elite shoe that was aimed at powering the firm to achieve more sales. As such, the introduction of new brands of products was used by the company to maintain the loyalty of its customers.

Advertising Using Digital Media

The digital aspect of the project determines that the companies analyzed effectively used digital media to reach their customers. The use of social media and Internet advertisement through the company websites was strongly used and in most cases targeted the young customers (Silverstein, 2010).

Social Media Advertisement

It was used by the companies to enhance their interaction with customers in order to co-create value and ensure that the resultant products satisfy emergent needs. In the research about Nike, it was found that the Internet, particularly the use of Facebook, eased customer-company interactions. The company uses the Internet to co-create value with the customers and help the company learn directly from the customers regarding their views and suggestions (Tate, 2014). Digital technology has reduced costs associated with communication so that to allow remote coordination and collaboration. Nike has created an online community for the customers so that to enable forging of tight relationships that will enhance long-term engagements and the online marketing headed by the internal team of social media experts, whose responsibility entails the management of its online communities. In addition to the third party platforms, such as Twitter, Facebook and Instagram, Nike operates its own social network known as Nike Plus.

Innovation Strategy

Nike signed a partnership with Apple so that to provide clients with iPod as part of the sports kit. For instance, Nike signed a partnership with Apple to develop an iOS which has a Nike+ option. Such option involves a $39 chip that is inserted into an individual’s shoes, and through Bluetooth, it sends data into an Apple device (Bunce, 2012). The approach offers Nike an advantage in the market and it promotes customer satisfaction, which leads to brand loyalty. It is a marketing tool, since it involves focusing on customer needs and manufacturing of necessary products.

Advertising through Websites

Such Internet advertising form is majorly used as location marketing technique to help customers locate retail stores or identify and order a product of choice. In the analysis of Nike, the company used its website to create a culture of exclusivity around its shoe offering and online environment to ensure customers are engaged and use the website insider.nike.com. The release date and time for a new brand of shoes are set, which makes customers buy a new product immediately. It helps the clients learn about new products to be released in the future and prepare in advance to purchase.

Brick and Mortar

It refers to a firm that owns office buildings, production facilities, operations stores as a location for running their businesses. All analyzed companies, including Nike, L.L. Bean and REI, use a hybrid system of marketing and location for clients to access their products. However, there are several ways used to leverage the brick and mortar locations (Gustafson, 2014). The use of physical location has a number of cost advantages when compared to other methods used to leverage location. For instance, using the stores to reach customers helps minimize the reservation costs for auditoriums, eliminate the catering costs and marketing costs, such as marketing flyers and business cards. Equally, the benefits for the use of brick and mortar include facilitating human and personal to communicate with customers, who may ask more questions. It provides the opportunity of feedback from customers to the company to learn about their experience.

From the L.L. Bean research it was noted that the company had opened several stores in different locations in the country. Therefore, it was able to cater for the needs of the customers within the shortest time possible. However, the locations for the firm’s products were determined by online sales conducted by the firm as leverage for store locations.

Builds Online Presence

As noted earlier, L.L. Bean, Nike and REI are engaged in online marketing and create online platforms serving as a means of reaching customers. Nike, on the other hand, signed a partnership with Apple to develop an iOS which has a Nike+ option to allow clients view the available products and also use Nike Plus in addition to the other general social media platforms like Facebook and Twitter (Bunce, 2012). The companies leverage the store locations, since more customers can access their preferred products through online interfaces without walking into the stores. The use of online marketing is beneficial to the companies, since all the concepts are replicable.

Auditorium Presentation

It is another way of reaching potential clients who are unable to visit distribution stores or may not prefer online platforms. It is done in a detailed presentation format with large audience with the aid of projection screens.

Hosting Events

Organizations can also supplement brick and mortar location with hosting and co-hosting events in order to market their brands. For instance, Nike has severally co-hosted and co-sponsored sport events, such as athletics, while marketing their sport shoes. Such strategy implemented together with other strategies in a hybrid system has the potential to enhance marketing performance in the organization to maintain high customer loyalty to the organization (Ball, Erdogan, Uribe. & Francetic, 2014).

Shipping from Location

To avoid having more retail stores which will intern increase of operation, the companies have the option of goods delivery directly from the manufacturing locations to the customers.

Brick and Mortar and Digital Media

Companies that want to maximize their marketing activities need to use integrated marketing communication strategy that combines both the brick and mortar strategy of delivering products to customers and the digital platform location to reach customers. Sigma-Aldrich Natick strategy has the ability of maintaining customers’ loyalty when digital media of marketing is linked to the physical location where goods can be accessed. L.L. Bean succeeded in its strategy to satisfy customers, since the brick and mortar locations chosen for the firm’s products were determined by online sales conducted by the firm (Gustafson, 2014). It means that the two strategies were amalgamated to maximize on performance. It is important to note that most online shoppers are young people and, as a result, failure to use the two strategies would mean that one segment of the target market will be lost.

While L.L. Bean, Nike and REI are engaged in online marketing through Facebook, twitter, Nike Plus platforms and further development of iOS, which has a Nike+ option through Apple Inc., the three companied still operated several stores. Bean, for instance, had established several stores in different locations in the country catering for the needs of the customers within the shortest time possible. The combination of both digital marketing and brick and mortar strategy will help in understanding of the customer relationship management techniques.

Conclusion

Current report concentrated on how Sigma-Aldrich would deliver products to the right customers. It is only achieved upon the acknowledgement of the significance of customer relationship management techniques in the development of an organizations promotional activities and setting of sales targets. Based on the research finding on L.L. Bean and Nike, Sigma-Aldrich can, as well, improve customer loyalty. It can be achieved if the company amalgamates the use of digital media platforms like the use of social media and the use of brick and mortar strategy in reaching and retaining customers.

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