Concepts Of Customer Relationship Management

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Customer Relationship Management (CRM) which is also known as relationship marketing recently emerged as an integral marketing concept in the business environment. It is an activity carried out to reach and connect with customers in an environment highly saturated with products, advertisements and promotions, businesses etc implementing a customer relationship management component in their marketing design. A Customer Relationship Management operation allows marketers to build a long lasting relationship with consumers at the individual level through the use and management of different programs and key components.
This chapter of the study does not intend to be involved in the general discussion about Customer relationship management but rather
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Some other authors also explain CRM as the procedure that comprises of activities that were assumed by the firms to achieve a long term, profitable and mutually beneficial customer relationships (Plakoyiannaki & Tzokas, 2002; Reinartz et al., 2003; Shaw, 2003).
As it is known as a new practice in the business environment, the definition of customer relationship management has been discussed by different scholars and is ever growing. In an actual sense, the term known as CRM has developed different meaning to different individuals and organizations. Initially, customer relationship management was narrowly defined as promotional marketing based on a customer database (Bickert, 1992).
According to Peppers and Rogers, (1993) described CRM to be a multifaceted process that builds one-to-one relationships with customers in order to achieve long term growth. Relationship marketing goes beyond persuading customers to buy products; it is about fulfilling their expectations with the aim of transforming them into long term, loyal customers (Gronroos,
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Services are delivered directly from the service provider to the consumer without the use of middlemen in the distribution channel (Parvatiyar & Sheth 2001). The absence of middlemen from the equation, made it possible for customers to be more visible as the “co-producers” when they personalize products and interact with employees and websites on a more intimate level (Vargo & Lusch, 2004). The prerequisite of a direct contact encourages a cordial relationship in an environment that is naturally formed, but the service quality of the provider is vital when developing a long lasting, satisfactory relationship (Crosby, Evans & Cowles 1990). The intention of capitalizing on profitable consumers, maintaining and strengthening the producer-consumer relationship, organizations turns to customer relationship management. In every interaction between customers and organization, at the end, there is a possibility that the customer’s expectations can be met, exceeded or fell short. As competition increases among organizations, there is a greater highlight on customer satisfaction and in turn, customer expectations are increasing. Although some customers value price over all other characteristics, many customers are not willing to compromise when it comes to products and services; base on that reason, organizations adopts the operation of customer relationship management to guarantee

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