Customer Relationship Marketing: American Express And United Airlines

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Customer Relationship Marketing (CRM) is more focused on what happens after a customer is acquired. The goal is to develop a long-term customer relationship that benefits both the customer and the company. This summary will discuss the purpose of customer relationship marketing, the customer’s value versus the company’s value, strategies used to implement CRM, and review companies that have successfully implemented customer relationship marketing programs.
Purpose of CRM
Relationship marketing aims to build equally satisfying long-term relationships with key partners in order to earn and retain their business. The four main components are customers, employees, marketing partners, (i.e. suppliers, distributors, dealers) and financial partners (i.e. shareholders, investors) (Kotler & Keller, 2014). The outcome of relationship marketing is a company asset called marketing network. The marketing network consists of the company and supporting stakeholders with whom it has built mutually profitable …show more content…

It identifies customers by name, needs, and buying behavior. A business database marketing system must be able to customer’s buying habits, needs, and segment value proposition in order for this strategy to be implemented.(Best, 2013) American Express and United Airlines are two companies that have implemented the mass personalization strategy, successfully. American Express mission is to provide customers with access to products, insights, and experiences that enrich lives and build business success globally. They developed a mass personalization promotional program for its core segment in hopes of distinguishing the high-potential sub segment customers and were successful. United Airlines developed their Frequent Flyer Mileage program which allowed customers to extend their involvement with the company. Their goal was to personalize customer interaction by extending different levels of

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