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The Art and Science of MarketingMarketing for Marketing Managers$
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Grahame Dowling

Print publication date: 2004

Print ISBN-13: 9780199269617

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780199269617.001.0001

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Retaining Customers: Customer Relationship Management

Retaining Customers: Customer Relationship Management

(p.339) Chapter 11 Retaining Customers: Customer Relationship Management
The Art and Science of Marketing

Grahame R. Dowling

Oxford University Press

This chapter looks in detail at customer relationship management (CRM) as a more holistic approach to customer retention. It is premised on the belief that developing a relationship with customers is the best way to get them to become loyal, and that loyal customers are more profitable than non-loyal customers. The first section reviews the origins of CRM programmes and in doing so illustrates many of the conditions required for CRM to be successful. The second section reviews CRM programmes in B2B markets. This is where CRM has a long history of success. The third section reviews CRM programmes in B2C markets. The fourth section examines customer loyalty programmes. The final sections focus on the key question facing marketing managers, namely, are CRM programmes likely to be a cost-effective use of marketing funds—relative to the programmes outlined in the previous chapters?

Keywords:   customer retention, loyal, customer relationship, data mining, customer loyalty, B2B market, B2C market

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