The purpose of this report is to provide an understanding about Customer Relationship Management (CRM) and the reason why it is considered as an evolutionary breakthrough in today’s business world. To add further, this covers the importance of customer relationship management with respect to customer service and loyalty which results in profitability to a company in the long run. It also explains the development of the company’s vision to increase profits with the help of technology, people and processes. There had been many management concepts which had become famous in the business world however all of them were short lived. None of them could meet the requirements of the changing business world.
Customer Management Relationship is known as CRM. It is a business strategy where all the processes, people and technologies of a company combine to meet and understand customer’s need. CRM is an integrated approach, which focuses on managing long term relationships and retaining customers. In today’s competitive business, irrespective of the type of industries, customer focus is the key to long term growth. CRM helps in evolving organizations to customer-centric ones. Kennedy & King (2004) point out that many companies are facing challenges sustaining and establishing their business models and as a result the company has to go through downsizing. Many renowned companies such as Wells Fargo, Harrah's Entertainment, and IBM etc. have sustained their business by investing in customer relationship management (CRM). CRM model involves various technologies to synchronize various departments like operations, sales and marketing, human resources, R&D, finance, technical support and customer service team within an organization. Successful CRM implementations in many companies have resulted in customer loyalty and long term profitability and it requires an integrated and balanced approach to process, people and technology. CRM is an imperative part of the business process re-engineering which is customer- focused and requires cross functional and company-wide implementation. Goldenberg (2000) conveys that CRM is not simply a technology applications for sales and marketing, customer service etc, but it is a customer driven, cross- functional, technology- integrated business process management strategy which builds relationships in the entire organization provided that it is implemented successfully. Customer relationship management (CRM) has emerged as a tool for many companies resulting in lower operational costs, higher revenues, increase in customer satisfaction (Chen & Popvich, 2003). With the help of CRM applications, many organizations could gauge customer’s loyalty on the basis of money spent, long term business association and repeat purchases. As per Kassanoff (2000), customer gets an understanding that they are getting better customer service and they are valued by the companies.
Page 1 Customer relationship management has emerged as one of the key business strategy for an organization for delivering effective customer support. Companies which are into customer focused business need to regularly update themselves with the new tools and applications, latest techniques and knowledge about effective customer service functions (Babu & Kumar, 2010). Good customer service has become the benchmark for all the companies, regardless of the industries that they belong to. Customer relationship management (CRM) evolves loyal customers which in turn get developed into a driver of profitability and growth. The outcome of high customer loyalty could generate enormous competitive benefits; motivate employees, which in turn result in sudden increase in productivity and...
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