By M. Isi Eromosele

In order to prosper in a competitive global market, companies need to make their customer needs the centerpiece of their market planning.

Customer life cycle planning consists of two phases: Acquisition phase and Retention Phase. The acquisition phase consists of establishing a relationship of interest which could lead to conversion of a prospect into a customer. Retention phase involves developing a personalized relationship with the customer that turns him or her into a long-term asset to the company.

Generally, it costs five times more to acquire a new customer as it does to get more business from a retained one. As such, customer retention is much more effective. Additionally, knowing the customers and their evolving needs enables a company to acquire new customers more efficiently as well as facilitates targeted cross selling.

An efficient Customer Relationship Management (CRM) approach should be customer-focused and customer-driven, which means implementing all facets of the business to satisfy customers by addressing their specific needs as well as providing excellent support services.

Companies should leverage technology to engage individual customers in a two-way communication that subsequently enables the firms to customize their products and services in order attract, acquire and retain new customers.

CRM can result in more effective marketing by enabling companies to create intelligent opportunities which engender effective cross-selling.

• CRM could be utilized to gather information about the needs of your most profitable customers to enable the development of a more personalized and profitable relationship with them
• CRM enables the building of a long-term partnership between you and your customers through the use of internal business processes such as marketing, sales and customer service
• CRM uses strategic planning and technology, as an underpinning with business strategy to put customer needs as the centerpiece of organizations’ business practices

The business model inherent in Customer Relationship Management targets customer satisfaction as the ultimate objective. Companies using this model strive to meet customer needs by delivering on their brand promise, even while striving to go beyond their expectations.

Companies are now turning to an alternative business model, the Return on Relationship (ROR) model. In ROR, managing customer relationships, understanding and delivering what the customers’ desire over time enables a company to build long-term customer loyalty. Customer satisfaction is the foundation of the ROR model.

A CRM solution as a concept for developing a mass customization program is based on the personalization of products offered to the customer in order to achieve long-term customer loyalty.

Many companies are implementing a move toward eliminating intermediate channels and selling directly to the customer. These companies sell their mass customized products efficiently on the Internet through direct engagement with their customers.

Today, the social media paradigm allows companies to communicate with communities of their customers directly and efficiently.

M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance

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