The Importance Of Customer Relationship Management

1752 Words8 Pages
The consumer retail industry is a multi-million euro business and with the ever growing competitive market, players in this field have to strategize ways of remaining in business and growing. Mercator retail chain originating from Slovenia has not been left behind. After being in business for many a year, they have learnt to understand the importance of knowing their customer and the role they play in Mercator 's future plans. Our research looks at the Mercator’s understanding of this and how they use data collected from loyalty card holders to understand trends, preferences and by extension help the retail chain strategize future plans of making the best of the prevailing market conditions. For this research we shall assume
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It is not enough to simply compete with products and services. Products and services are the “what” is delivered, whereas the customer experience is the “how” it is delivered. The customer experience is the product of an interaction between an organization and a customer over the duration of their relationship (Duncan, Fanderl, Maechler, & Neher, 2016).Customer relationship management (CRM) represents the strongest and most efficient approach in building and maintaining relationships with customers and hence delivering the best customer experience. First time customers are more likely to become second-time ones and so forth. According to Payne & Frow customer relationship management can be defined as follows: “CRM is a cross-functional strategic approach concerned with creating improved shareholder value through the development of appropriate relationships with key customers and customer segments. It typically involves identifying appropriate business and customer strategies, the acquisition and diffusion of customer knowledge, deciding appropriate segment granularity, managing the co-creation of customer value, developing integrated channel strategies and the intelligent use of data and technology solutions to create superior customer…show more content…
The Slovenian food retail market does have a high market concentration. The top five retailers in 2007 made up around 80% of the market. 40% of consumer spending are accounted for by retail sales. Slovenia has a mountainous landscape that gives way to many small cities and a big rural population. You can find the large and modern supermarkets in the big cities, whereas in the remote villages you can see small neighborhood shops that are supplied by wholesale businesses (Ryba, 2008). The large rural population and relatively small large cities might hinder the retail development for hypermarkets and supermarkets. Furthermore Slovenians are very price
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