Marketing 3.0: The 4R Era of Customer Relationship Management
Marketing 3.0: The 4R Era of Customer Relationship Management (CRM), was the third stage of modern marketing. It began in the early of the 21th century which was focusing and maintaining more on the relationship with customers.
As time continues to move forward and step into the 21st century, which is also known as the Internet age. The development of the Internet has made it more direct for companies to communicate with customers, and companies are more capable of obtaining customer information and gaining a deeper understanding of customers through interaction with customers.
The general environment of the entire market has also begun to be customized, that is, the concept of C2B has emerged. Meanwhile, customer thoughts began to change again. As mentioned above, customer thinking began to emerge in the marketing 2.0 era, and the marketing 3.0 era also advocated the thoughts, but they are completely various different in the two eras.
Customers in the marketing 2.0 era emphasize a group, while customers in the marketing 3.0 era emphasize individuals, which is what Kotler calls “the era of people-oriented marketing”. The relationship between enterprises and customers is also changing.
In the earliest marketing 1.0 era, companies focused on products rather than customers, so this era is also called the product-oriented era; in the marketing 2.0 era, companies focus on customers and emphasize customer thinking, so this era is called the customer-oriented era, and the marketing 3.0 era is called the era of customer relationship management, which emphasizes the relationship between each customer and the enterprise. Enterprises focus on what value they can bring to individual customers to obtain customer loyalty, and at the same time, enterprises also need to consider how to reward customer loyalty.
The marketing 3.0 era is an era represented by 4R which is the abbreviation of the four English words, Relevance, Reaction, Relationship, and Reward. Thus, what we called “association” means that the enterprise and its customers are a community of destiny. If the enterprise does well, the customers will benefit.
To make customers willing to make more contributions to the company, the company must constantly pay attention to customers. If it finds anything wrong, the company should improve immediately, and if it finds a means that can bring customers higher value, it should immediately make suggestions to customers.
“Relationship” has become a measure of the intimacy between customers and enterprises. Enterprises care about customers, and customer feedback is loyalty.
Compensation is how companies thank individual customers for their loyalty and dedication to the company. The most common way is to reward members with points, so this era can also be called the era of Customer Relationship Management (CRM).
The concept of CRM points out that customers are the most important asset of an enterprise. After a customer consumes for the first time, the enterprise should pay attention to how to promote its repurchase, how to strengthen customer stickiness, and how to maximize customer value. That is what we make to carry out customer life cycle management. .
The research that has studied CRM often stated that the value of an existing customer is five times of a new customer, so companies should focus more on the retention and growth of existing customers. Among the companies I have been in contact with, the sales performance of some companies often stagnates. In fact, it is because they do not pay enough attention to CRM.
The specific digital proof will be explained in detail in another column I will release in a series next, or you also can do research about CRM by yourself. Of course, what I have provided or shared here is just some idea or thought that be able to help you to ignite and activate your potential knowledge and skills through your own traits. See you in my next article we will continue to discuss Marketing 4.0 and 5.0.
