Question

1. Please compare and contrast wallet share and market share when it comes to growing the business. Which of the two is a better long-term growth strategy for a company? Please explain your rationale.
2. Define Customer Relationship Management. What are the keys to making it work? Why do you think that Customer Relationship Management may fail to achieve its goals?

Answer 1

1. Market share is the percentage of a company's revenue in terms of the entire market. For example, if Apple accounts for 30 percent of all laptops purchased, then Apple's market share for laptops is 30%. Market share includes the entire "bucket" of consumers and budgets available in a given market. On the other hand, the wallet share determines how much a consumer pays for a specific company in a given market. For example, if a company wants to buy new laptops for its employees and buys only MacBooks for higher management (10 percent of all employees), then for that particular customer Apple has a wallet share of 10 per cent.

Wallet share aren't a static number. You should look at it as a starting point, which you can use with the right communication and information–especially in the context of account-based marketing. The important aspect is to learn why other vendors and goods are chosen, or why your business is not included in their respective category for all the expenses. To obtain the detail, a conversation with your customers is crucial. Quite often, the brand or the advertising experience is at least as much, if not more responsible for a customer's purchasing decisions. The authors write that companies need to consider why clients choose those businesses.

2. Customer Relationship Management (CRM) is a technology that manages all the relationships and interactions with customers and potential customers within the business. The goal is simple: improve relationships between businesses. A CRM system helps companies stay connected, streamline processes and increase productivity. If people talk about CRM they usually refer to a CRM program, a tool that helps with the management of contacts, sales management, efficiency, etc.

A CRM system gives everybody–from sales, customer service, business development, recruitment, marketing, or any other business line–a better way to manage the external interactions and relationships that drive success. A CRM tool allows you to store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location — and make information available to anyone in your company that might need it about every customer interaction.