Before defining the relationship marketer’s role, we need to understand CRM.
According to AMR Research (source: M a i k e f i q , 11 November 1999) sales of
CRM systems reached A1.6 billion in 1998 and that figure is projected to rise
to A10.5 billion by 2003. This technology helps to handle mass communications
and process customers:

1. CRM packages will help to identify clusters of customers with similar profiles, buying patterns and behaviour, alluring you to analyse and target each segmented niche with appropriate messages to help maximise sales per customer.
2. e-CRMyacknges help to target individuals online, in order to offer them targeted promotions, based on their use of the Website and practising patterns.
   

But it’s not just a matter of plugging in a package and doubling revenue.
Research by the Gartner Group (source: Afaikeri,zg 11 November 1999) concluded
that in some CRM sectors, up to 65% of projects failed to deliver and
many overran or came in over budget.
However, to be successful a brand needs to deliver:

• quality and Reliability
• value for money/marketing pricing
• excellent service and customer contact
• excellent back-up
• online delivery
• service and guarantee
• salience - the right product to satisfy market need.
  

All these depend on good marketing and people. Technology is just a lever, a mechanism, a fixed cost of business, like a shop to a traditional retailer. Customer Relationship Management is the process of getting to know who customers are, understanding their behaviour and needs and then driving profitability through more efficient marketing communications and high customer retention. It is growing in importance because of the rise in consumer power (ignore your customer's needs at your peril - we all know the Marks &. Spencer story).
It is the coming of age of direct marketing - companies have learned how to collect data, and now that data is being used to optimise customer relationships and improve profibitability.

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One of the long-term sustainable benefits of building a relationship with the customer is to build brand loyalty. The term “loyalty” is often taken out of context. It is not at one end of the scale, a cradle-to-grave bonding, or at the other end a supermarket affinity programme. There is little loyalty in either scenario. Loyalty in a brand context means that, given a consistent market niche. for instance flights to New York, and given two comparable products, the established customer would require a very good reason to switch brands horn his regular first choice. However, if there is a good reason, he would switch in an instant, provided there is minimal hassle in doing so. It is the latter that has stopped many people froin swapping banks despite appalling customer service and unreasonable bank charges. The same has traditionally been true of other state monopolies in utilities and telecoms. It is the relationship marketers who must build the relationship and trust in the brand through a continuing programme of Customer Relationship Management (CRM) .

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