On CRM and database marketing

With the intensification of the market competition, new marketing ideas are appearing constantly, on this basis also led to the development of new marketing tools. Based on the theory of CRM, this paper introduces the rise of the new marketing method of data order management, and analyzes the relationship between CRM and database marketing.

When we enter the network economy era, direct marketing, database marketing, relationship marketing and other marketing concepts in this "e-era" rewrite the rules. And the economic globalization brought about by the competition, especially the end of the three-year protection period, making customers increasingly become one of the most important resources of enterprises. The choice of customers determines the survival and development of the enterprise to a great extent. Mastering the customer information, accumulating the enterprise wisdom, establishing the real lasting competitive advantage, has become the survival way of the enterprise new era. From a global perspective, CRM and database marketing are more and more favored by enterprise managers.

The theoretical connotation of CRM

CRM, namely customer relationship management, originated from the "Contact management" (contactmanagement) in the early 1950s, which is to collect and organize all the information of mutual contact between customers and enterprises in order to improve the management of enterprises and improve the marketing efficiency of enterprises. In the 80 's, Professor Lenberry first put forward the relationship marketing theory, the 90 's Frederickf.reichheld customer loyalty theory, and Donpeppers and Martharogers proposed "one-to-one" Customer strategy is the theoretical source of CRM. Many of the basic concepts of CRM, such as the understanding of customers, identification, discrimination and the optimization of customer long-term value are derived from the above theory.

CRM is a customer-oriented enterprise marketing concept, it is customer relationship focused, customer-oriented optimization of the market, through the development of systematic customer research and optimization of enterprise organization system and business processes, enhance the integration of enterprise departments and coordination capacity, speed up customer service response speed, improve customer satisfaction and loyalty, and to enhance the efficiency of the enterprise and profit level of a marketing management strategy. It is the integration of customer information management, it is the "attention to customer resources," the full embodiment of the management thought, fully fit the enterprise to the "customer-centric" mode of operation of the transformation, and thus rightfully become the enterprise to obtain competitive advantage of an important link. Through customer relationship management, the establishment of a comprehensive customer database, customer interaction forms and organizations, customer satisfaction and loyalty analysis and evaluation, can create a new customer service, new value, in exchange for long-term customer loyalty, the formation of competitors difficult to replace the competitiveness.

CRM includes various marketing concepts, strategies and strategies, such as arranging distribution channels according to changes in customer behavior patterns, and using customer data to plan and implement distribution, promotion and service strategies. Generally speaking, the main functions of CRM are as follows:

1. Customer Access

CRM enables businesses to identify and attract the most profitable customers. The system collects the customer's data, then the detailed classification and analysis, from which we can filter out the target customer base of the enterprise, to those who repeat the purchase to reward, so that they feel good two-way communication, and think that they have received special attention and reward, in order to enhance business and customer communication, We will strengthen the long-term cooperative relationship between mutual benefit and mutual trust, and use customer data to design and develop the products and services that these customers like, so as to provide personalized services, or to provide specialized services to a customer base.

2. Customer Development

With the help of CRM, enterprises can stand on the customer's position, study what products customers need, when and how to meet the specific service needs, and according to the use of distribution, promotion, service and other marketing strategies and strategies to improve services, reduce costs and win loyalty. Do a good job of customer development, need to do the following: (1) in the time and place the customer needs to provide customers with the real needs of products and services, in order to maximize the profit of the recipient; (2) to understand customer value and its behavioral characteristics, based on this, prioritize marketing programs, effectively configure service resources, (3) by means of various marketing methods, Promotion and service channels, improve services and reduce costs, (4) through the sale of products, to the customer individual or family to implement a larger market penetration, in order to continuously improve the market share of enterprises.

3. Customer Retention

In the maintenance of existing customers, one should be committed to building and maintaining customer loyalty; second, the use of customer data to carry out targeted promotional and cross-selling activities; Third, we must strive to expand the range of products and services that each customer participates in in order to establish stronger links between customers and enterprises.

Second, the rise of database marketing

With the continuous development and perfection of CRM theory, a new marketing means has appeared with the rise and maturation of it.internet and database technology, which is the data base marketing. It has provided a brand-new marketing tool for the enterprise, and changed the enterprise's marketing mode by changing the business idea of the enterprise.

Database marketing in the last three or four years, along with the commercial automation market mature and rise. Database marketing in the Western developed countries have been quite popular in the enterprises in China, although just started, but with the fierce market competition, more and more enterprises are aware of the importance of database marketing to enhance the competitive strength of enterprises. Through data mining Technology (datamining), by looking at 20% of the customers who created 80% of the company's profits from millions of data, and maintaining their brand loyalty in more efficient ways (such as one-to-one marketing, custom marketing, cross-selling, etc.), it has increased the growing tendency of businesses to " Buyer's Market "winning opportunities in a competitive environment.

After the dilemma of traditional marketing, which is characterized by the mass market, the database marketing with "Individual customer information" provides a new sales model for enterprises. Database marketing must first have a dynamic database, through the data information in the database to identify the target customers and potential customers, and communicate with them. To capture their needs more quickly and accurately, and then communicate information about products and services to them in a more efficient way, and in the process to build long-term relationships with customers.

Three. CRM and Database Marketing

In marketing practice, CRM and database marketing are closely linked, but we can not confuse the two. As mentioned earlier, database marketing is a marketing tool, it reflects the transformation of business philosophy, and the core of this change is CRM theory. So in this sense, database marketing is the theory practitioner of CBM. First of all, the first step in implementing CRM is to build a detailed and complete customer database, which is not only in function but also in form

is an important platform to practice CRM. Database marketing enables enterprises to set target marketing plans according to customer needs, thereby reducing the cost of promotion. It provides a way to personalize communication with customers, from passive reception of original customers to mutual communication. It takes the customer satisfaction rate as the marketing goal, through maintains the customer relation to realize the customer lifetime value maximization, this is practicing the CRM theory connotation. Secondly, customer relationship management (CRM) is the strategic behavior of the enterprise, which is based on the competition between enterprises, and realizes the shift from the center of the product to the customer. Customer relationship strategy represents the mission, planning, goals and strategies of the enterprise, and requires the joint support of employees, suppliers, channel members, alliance Partners and groups, which involves the comprehensive adjustment of corporate culture, strategic direction, business process, organization, internal staff and so on. In addition, database marketing is a technical tool to implement plan support strategy at the tactical level, besides, it needs the comprehensive intervention and guidance of CBM theory. Finally, for some enterprises, such as direct sales, the use of a separate database marketing can be a one-to-one sale, so as to achieve effective customer relationship management; and some enterprises, such as PC, home appliance distribution system, in addition to the use of customer database, they also need to rely on sales automation software, The most critical sales process optimization, only in this way can truly achieve customer relationship management; In addition, some enterprises face competition, in addition to customer database, the first need is a perfect customer service system, such as telecommunications. Therefore, database marketing is not the only practitioner of CBM theory, the comprehensive practice of CRM theory also needs to consider the coordination of various factors, such as Enterprise's own needs and matching, the company's strategic choice, the current market environment and so on.

Market competition will make enterprises face more and more survival pressure. The laws of nature also apply to enterprises in the market, and only those enterprises that adapt and satisfy the requirements of the customer-made market can survive in the end. Therefore, whether CRM and database marketing, or the future will appear in the updated marketing theory and marketing tools, focus on the needs of customers is the fundamental enterprise.