CRM (Customer Relationship Management) for the 21st Century Essay

CRM (Customer Relationship Management) for the 21st Century - Essay Example Because of the availability of the digital delivery channels and the opt-out options available to the customers, there has been a shift in the complexity of the customers and their needs (Alterian, 2009). The customer has to be at the centre of the marketing process. Customers have to be engaged at every step of the life cycle. This is facilitated by the data that is available online and off line. Today the banking services are virtually available to the customers 24x7 and if responses do not happen in real time, there is every chance of losing the customer. As per a report in Business Wire (2008) companies and brands with engaged customers outperformed those with disengaged customers. This has been measured through standard financial metrics of gross margin, earnings per share growth, and return on equity. An outcome of the web2.0 technology, customers can be engaged in different ways. Since web2.0 has no walled gardens, information can flow freely in and our of the web services (James, 2007). Having engaged and loyal customers is important to banks especially during this time when customers are concerned about their financial position (Bielski, 2008). Through customer engagement it would be possible to get the customers attached emotionally to the brand. This can be possible through an interactive website and with added features such as customers’ blog where members exchange views and opinions on products, features and benefits. The web2.0 space has led to the evolution of three distinct areas – user-generated content sites, social media applications and true online communities (Young, 2007). User-generated content is reflection of the expansion of media production through new technologies like digital video, blogging, podcasting, mobile phone photography and wikis. However, for the purpose of a bank, blogging