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Top1. Introduction
Companies require building and developing relationships with customers to know them better (Moreno & Lockett, 2015). Companies require understanding customer requirements and preferences. Companies will not be able to serve and delight their customers unless they understand customer requirements better (Vigolo, Bonfanti, & Rivera-Hernaez, 2021). Consequently, it is imperative for companies to build and develop long-lasting customer relationships. Companies and businesses work in a competitive environment. They will not be able to compete and excel in the competitive environment unless they build and develop positive and effective relationships with relevant customers. However, companies do not want to build relationships with all their customers. Today’s companies are building more direct and lasting relationships with customers who are selected carefully (Tambunan, Reza, & Susanti, 2021).
Companies should have customer relationship management in place to focus on customers. Customer relationship management (CRM) is the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction (Payne & Frow, 2005). Companies aim for high customer equity through customer relationship management. Customer equity is the total combined customer lifetime values of the company’s customers (Lemon, Rust, & Zeithaml, 2001). Companies are able to build lasting customer relationships through the creation of superior customer value and satisfaction (Djajanto, Afiatin, & Haris, 2019).
In the era of globalization, companies cannot build and develop relationships with all customers. They build and develop relationships which are mutually beneficial for themselves and customers and for the society at large.
Companies acquire profitable customers. However, companies build relationships with those customers who help them in growing their share of customer (Maggon & Chaudhry, 2018). In the digital age, with technological developments and internet penetration, customer relationships are developing in online marketing domains. Customer relationships in online marketing domains may require different set of skills for companies. Companies should formulate different customer relationship management strategies for different customers both in offline and in online marketing domains (Mandal, 2021). Also, marketers should build the right relationships with the right customers (Caliskan, 2019). Companies should also be aware of consumer rights and should develop marketing strategies accordingly (Schlegelmilch, 2022). In return for creating value for targeted customers, a company captures value from customers in the form of profits and customer equity.
Good marketers cannot select customers and build relationships with them without the help of other stakeholders. They should work closely with marketing partners inside and outside the company. Consequently, in addition to being good in customer relationship management, companies should also excel in partner relationship management (Osterrieder, 2021).
The topic is important and relevant from a sociological perspective. Unless companies and businesses build, develop, and maintain relevant, long-term, and profitable relationships with customers, it will be difficult to create a societal impact. Companies should develop customer relationships and deal with customers and other stakeholders in a manner so that they are able to create a positive impact on the society. Relevant and long-term customer relationships will not only benefit customers but will also benefit the society at large. So, such relationships may be considered as public good.