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Customer relationship management (CRM) is too focused on transactions and now retailers must build two-way relationships.
Customer relationship management (CRM) is one of those terms that's been bandied around for at least the last 15 years.
It implies that we're going to build a relationship with customers when, in reality, CRM is normally no more than a crude loyalty based points programme or an incentive to spend more and save.
I'd argue that too often retailers give away margin without really knowing what the impact is on customer lifetime value and behaviour.
Tesco Clubcard, Boots Advantage and similar programmes have their strengths in driving propensity to buy, but at their core, they are spend and save schemes.
They are not building a lasting, long - term relationship that correlates with the lifestage of the customer.