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Customer Relationship Management In Smes

789 Words4 Pages

Focusing on the customer is becoming very important for SMEs to survive in the market. SMEs needs to fulfill the diversity needs and wants of customer to achieve competitive advantages. It is known that SMEs may spend up to five times more money to obtain new customers than to retain the existing customers (Payne, 2002). Therefore, SMEs need to keep their customers due to limited resources compare to acquiring new customers. Despite this, customer relationship management (CRM) has the potential to help SMEs in keeping customers more easily and also help SMEs seeking more potential customers. According to Christopher, Payne, and Ballantyne (1991) studied that the origins of CRM in relationship marketing theory is intended to increase productivity …show more content…

Therefore, having CRM in SMEs is to enhance a good customer services. CRM is a tool to implement a marketing strategy to focus on the customer. According to Parvatiyar and Sheth (2001), CRM defined as a strategy and process of acquiring and retaining customer which can create superior value for the company. By create a good customer service, customer relationship management play an important role to maintain the relationship with the customers. In term of CRM, not all customers are the same. Different customers need to be treated differently. CRM is a business strategy with the goal of maximizing the profit of company and it is technology-driven to solve the problems that the companies have. CRM can view as a software system and it is to help company building relationship with the …show more content…

672). The three combinations are the context include customer-centric, technology-driven and enterprise-wide. According to Chen and Chen (2004), Customer Relationship Management (CRM) divides into two categories which are tangible and intangible benefits to the enterprises. The tangible benefits were increased profitability and deduced in costs, while the intangible benefits were improved satisfaction of customers, good word-of-mouth and enhanced customer service (Chen & Chen, 2004). In addition, CRM help enhanced customer services by provide excellent communication with customers and modify the offer, thus maintain loyalty of profitable customers (Dimitriadis & Stevens, 2008). In the other way, CRM described as a commonly business strategy that using for managing and interacting with customers, supplier and shareholder (Gallagher, 2012). Gallagher (2012) studied that CRM has using technology to manage productivity and also for enhancing customer service. Therefore, SMEs need low cost and high benefit CRM to achieve successful customer service which is adapts business with IT

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