Hello, this is Matsubara, CRM Evangelist.

The theory of CRM 4.0 didn't just appear out of nowhere.
Tracing its origins leads us to a management theory called "Relationship Marketing (RM)," which has been developing since the 1980s.
Over the next two installments, we will delve into the essence of RM and how CRM 4.0 has evolved from it, returning to academic theory to provide a detailed explanation.

In this first part, we will cover the essence of RM and the "6 Market Models."

table of contents

1. What is relationship marketing?
2. Why did the focus shift from "transactions" to "relationships"?
3.6 What is a market model?
4.6. The meaning of each of the six markets
5.6 Market Models Reveal the True Scope of Marketing
6. Connection points with CRM 1.0 to 4.0
7. Frequently Asked Questions (FAQ)
8. Summary: Towards Part Two

1. What is Relationship Marketing?

Relationship marketing (RM) is a management theory that focuses on building long-term, continuous relationships with customers rather than pursuing one-off transactions, and views these relationships themselves as assets of the company.

BeforeHistory and Definition of CRMHowever, as mentioned earlier, the concept of CRM has two main branches: one as a business strategy originating from RM, and another as software that has evolved from CRM 1.0.
RM is precisely the starting point of this lineage of management strategies.

2. Why did the focus shift from "transactions" to "relationships"?

The concept of RM (Realistic Marketing) was proposed against the backdrop of the limitations of "mass marketing" in industrialized societies, which is based on the premise of mass production and mass sales.
Mass marketing is based on the premise of delivering the same product and the same message to a large, unspecified number of consumers.
However, as the consumer economy matured and consumer needs diversified, this uniform approach became ineffective in building deep connections with customers.

This awareness of the problem led to a shift in thinking: "We view customers not as one-time trading partners, but as partners with whom we can build continuous relationships."
This is RM's fundamental starting point.

3.6 What is a market model?

One of the most important frameworks in RM theory is the "Six Markets Model."
This idea, proposed by marketing scholars Martin Christopher, Adrian Payne, and David Ballantine, suggests that companies should build relationships with more than just customers.

Many companies tend to think of "marketing" as simply "engaging with customers."
However, the 6 Market Model explains that the markets in which companies should truly build good relationships are spread out to the following six.

Source: Christopher, M., Payne, A. and Ballantyne, D., “Relationship Marketing”

4. The significance of each of the six markets

① Customer Markets
This refers to both new and existing customers.
While it is positioned at the heart of the 6 market models, it's important to remember that it is ultimately just one of six markets.

② Referral Markets
They are people who introduce new customers, including existing customers and business partners.
This market allows you to acquire high-quality leads while keeping the cost of acquiring new customers low through word-of-mouth and referral programs.

③ Influence Markets
Industry experts, the media, regulators, and analysts are all influential figures who can impact a company's or product's reputation.
Although they are not direct business partners, they play a significant role in shaping a company's reputation.

④ Supplier Markets
Suppliers and partner companies are essential partners for business operations.
Building good relationships can have a positive impact on costs, quality, and supply stability.

⑤ Recruitment Markets
This is a market for recruiting top talent.
Being able to attract top talent is crucial for the long-term quality of a company's business.

⑥ Internal Markets
This approach views internal employees as, in a sense, "internal customers."
Low employee satisfaction will also affect the quality of customer service.

5.6 Market Models Reveal the True Scope of Marketing

The most important lesson the 6 market models offer is that "simply building good relationships with customers will not lead to sustainable business growth."
If relationships with referrers are weak, new customer referrals will not occur; if relationships with internal employees are poor, the quality of customer service will decline; and if relationships with suppliers are unstable, the quality of products and services themselves will be jeopardized.

In other words, the "relationship building" that RM aims for is not limited to one-on-one relationships with customers, but is a comprehensive management perspective that extends to all stakeholders surrounding the company.

6. Connection points with CRM 1.0 to 4.0

Now, let's take a look back at the history of CRM that we've discussed so far.
CRM as software, from CRM 1.0 to CRM 3.0, has primarily evolved with a focus on managing relationships with the "customer market."
Features such as customer management, activity history, and sales opportunity management are all targeted at the customer market.

However, what RM originally represented was a perspective that looked beyond just the customer market, encompassing six entire markets: referrers, influencers, suppliers, recruiters, and internal stakeholders.
The concept of "relationship assetization" that CRM 4.0 aims for is also an attempt to reclaim this original breadth of influence.
Next time, we will explain how EMOROCO CRM Lite implements this perspective by linking it to a specific metric—the LCV (Customer Lifetime Value) theory.

7. Frequently Asked Questions (FAQ)

Q. When and by whom was the market model proposed?
This is a representative theoretical framework in relationship marketing, proposed by marketing scholars Martin Christopher, Adrian Payne, and David Ballantine.

Q. Can CRM cover markets other than the customer market?
While standard CRM software is designed primarily around the customer market, it can be adapted to manage relationships with other markets, such as suppliers and internal dashboards, depending on how you use it.

Q. Why is the idea that "we only need to focus on the customer" insufficient?
Factors such as referrals, reputation, talent, and supply chains all indirectly influence the quality of customer relationships and the sustainability of the business.
Focusing solely on the customer market can lead to overlooking these surrounding factors.

8. Summary: Towards Part Two

Relationship marketing is a theory that arose from a shift in thinking, placing "relationships" at the center rather than "transactions," and the 6 Market Model demonstrates that the target of this relationship building is not limited to customers.
CRM 4.0's goal of transforming relationships into assets is an attempt to recapture this inherent breadth using modern technology.

In the second part , we will discuss LCV (Customer Lifetime Value) theory, another important theory in RM, and explain how EMOROCO CRM Lite implements these theories.

EMOROCO CRM Lite costs ¥1,500 per user per month (minimum 3 users) and has no initial setup fee, with a 30-day free trial.https://www.emoroco.com/You can start from there.
IT implementation subsidy eligible tool number: DL07-0022934.

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Additionally, we publish useful articles about CRM 4.0 on note ( https://note.com/arcuss_crm ), so please check them out as well.

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• The History and Definition of CRM — From CRM 1.0 to CRM 4.0
• The Science of Relationship Assetization
• Debunking common misconceptions about CRM