The Downside of Database Marketing and CRM Assignment Help

The Possible Reasons behind the Downside of Database Marketing and CRM

The Downside of Database Marketing and CRM is an important topic for marketing students and marketers alike. There has been increased outcry against privacy intrusion, and Customer relationship marketing has been accused of keeping a tab on customer preferences.

Stalking not wooing customers

Many customers have complained that customer relationship marketing has been a process of stalking in which the customer is bombarded with advertisements. There has been an intrusion of privacy without being asked whether they like to get advertisement based on website visits and typing some terms in search engines. Many customers have felt irritant when they find that their emails and their mobiles are getting a lot of offer promotions and this, in fact, can bring negative image.

The cost of maintenance is too high

Assume that a company is selling only candy bar and they are not getting a very high return on investment. They can get very low returns if they start investing high on data warehousing. The reason is that there is a need for high investment on cloud servers.

Assume that a company is facing an issue of less loyal customers and there is a big issue of churning. This can affect the company as they are investing high on data warehousing with the intention of retaining customers and all their efforts are being spoilt.

Implementing CRM before having a sound policy

Every company should have a sound policy on customer relationship management and a company trying to implement CRM without having a sound CRM policy will be attracting trouble. A company should have ways to attract and retain new and loyal customers. Then they should implement it that using data warehousing else The Downside of Database Marketing and CRM will take place.

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Knowing the value of customer

Some companies have complained that it costs more to have a loyal set of customers because they always will be price conscious. The loyal customers would demand they need more discounts and they would need more festive offers when compared with new customers who may be willing to pay more. Loyal customers may switch shop if they get more discounts. Loyal customers may be inclined to spread less of the company, and this absence of word-of-mouth campaign can affect the company.

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