Monday, July 30, 2012
In the travel industry, as in many others, customer retention is critical. As important as it is to acquire new customers, it is even more valuable for an organization to hold on to those it already has. According to MediaPost contributor Mark Simpson, customer relationship management (CRM) tools can help firms to achieve this goal.
Simpson noted that one of the best ways for organizations to convince customers to stay is to offer rewards programs. Reward and loyalty programs provide an effective means for firms to demonstrate that they value a particular customer. With CRM, organizations can improve their loyalty and reward offerings, tailoring their programs to meet individuals' desires and values.
Too often, Simpson asserted, organizations see CRM as a means of acquiring information about customers which is only used to gain more customers. While that is useful, he maintained that firms should also use the information to better their rewards for existing customers.
Betanews contributor Irving Fain recently made a similar claim. He argued that CRM, and particularly social CRM, can be used to develop long-term relationships with customers, and that this is the technology's most valuable feature.