For the functional department, comparable customer-facing strategies can be created and measured for results. The differences in business unit relative to functional area are the breadth and level of granularity these strategies are executed to. Functional areas typically have much more tactical approaches, looking at shorter-term objectives while business units will be more concerned with a longer-range and more strategic orientation to their customer-facing strategies. Strategies at the business unit level with regard to CRM would be the launch of a new product and the data mining of customer information to see who would be the most likely to purchase the new product. At the functional level however the specific aspects of one area of the product launch would be the primary focus.
QUESTION #2: The Internet has grown from a stand-alone business/marketing strategy to a channel that must now be integrated into a companys overall marketing strategy and programs to fully leverage its impact.
Using a minimum of 200 words, please answer the following: What role might the Internet play in an organizations customer retention initiatives?
The Internet is increasingly playing the more important and pivotal role in customer retention strategies. Retaining customers is now a strategic initiative inside many customer-driven companies given the importance of holding onto customer during an economic downturn. The strategic components of customer retention however are shifting away from more statically-defined approaches to interactive and collaborative ones that seek out the voice of the customer (Richards, Jones, 2008). The growing importance of social networking to companies is having a significant effect already on customer retention. Defining and executing strategies that concentrates on the role of Facebook, MySpace, LinkedIn, Twitter and other social networking sites are critical if any company is.