Customer Relationship Management
The impact of customer relationship management on the financial performance of an organization
This chapter provides an overview of the dissertation in brief. Background of the study and rationale of the study are discussed in the first half. Then this chapter goes on to explain six research objectives and two research questions. Finally structure of the dissertation is discussed.
1.2 Research context
Customer relationship management, because of its nature, technological advancements, and its ability to attract and retain potential customers has received tremendous attention form the organizations. CRM when deployed effectively helps organization to focus directly on customer and succeed in customer-centric environment. The concept of customer relationship management (later referred as CRM) is not very old. It originated from the early 1990’s because of the emerging demands in the world
(Ling and Yen, 2001; Xu et al., 2002). The roots of customer relationship management can be seen in relationship marketing by which long-term profitability can be achieved through a shift from transaction-based marketing to customer retention by aiming at effective management (Christopher et al., 1991). The base of customer relationship management is relationship marketing and it stresses on profits generated through customer, lifetime value, retention and satisfaction created through implementing effective management (Chen and Popovich, 2003). Main aim of relationship marketing is to enable organizations to attain and maintain long-term healthy relationships with the customers in order to maximize profitability. While
CRM make use of information technology (IT) to effectively implement relationship marketing strategies (Ryals and Payne, 2001).
The importance of CRM has increased dramatically from the last decade and
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