Business – 3.1 The nature of marketing – Customer relationship marketing (CRM) | e-Consult
3.1 The nature of marketing – Customer relationship marketing (CRM) (1 questions)
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When a firm prioritises raising CLV, its CRM strategy focuses on deepening the relationship with each customer rather than merely acquiring new ones. This leads to tactics such as:
- Personalised loyalty programmes – Offering points, tiered rewards, or exclusive offers based on individual purchase histories encourages repeat buying and higher spend per visit.
- Targeted cross‑selling and up‑selling campaigns – Using data analytics to recommend complementary products that meet a customer’s needs increases the average transaction value and extends the product portfolio they use.
Both tactics rely on detailed customer data and ongoing communication, ensuring that each interaction adds value and encourages longer, more profitable relationships.