Objectives Of Customer Relationship Management (CRM)

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There are numerous published definitions on the concept and further other terms have been frequently used either as substitutes for Customer Relationship Management (CRM), or to describe similar concepts. These include direct management, customer relationship management, micromanagement, one-to-one management, loyalty management and interactive management, to name but a few. Customer relationship management(CRM) is the process of managing detailed information about individual customers and carefully managing all the customers “touch points” to maximize customer loyalty”. “It enables companies to provide excellent real-time customer service through the effective use of individual account information and it is important because a major driver…show more content…
Moreover, it enhances a company's ability to understand customers, increase its market share, and ultimately reduce cost and increase profitability. Ndubisi, (2003) argued that the cost of serving one loyal customer is five to six times less than the cost of attracting and serving one new customer. These outcomes enhance a company's market share and return on investment. The overall objective of Customer relationship management is to facilitate and maintain long-term customer relationships, which leads to changed view points and modifications of the marketing management process.
The familiar superior objectives of all strategies are enduring unique Relationships with customers, which cannot be imitated by competitors and therefore provide sustainable competitive advantages. Most of the concepts, ideas and developments discussed briefly above are present in the following refined definition which describes the objectives of CRM as to identify and establish, maintain and enhance and, when necessary, terminate relationships with customer and other stakeholders, at a profit so that the objectives of all parties involved are met; and this is done by mutual exchange and fulfillment of promises (Grönroos,
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DuyguKocoglu&SevcanKirmacistudied to determine the importance attached by ZiraatBankası (a state owned bank in Turkey) to customer relationships and to reveal the effect on customer loyalty of its importance to customer relationships.
Their research results show that not only collecting data about the customers but also giving information to them arouses customer loyalty, arousing in him the sense that he is valued. The customer report that they are not kept waiting for long.
The fact that banking procedures are fast and customers are not kept waiting much are rather important for customer loyalty. The personnel’s knowledge of banking and mastery of the subject accelerate the speed of the service given, so any attempt to train the personnel is necessary for customer loyalty.
Dr. NarinderKaur (2013) studied the concept of Trust and its impact on customer relationship management in banking sector in India in post liberalization era. The research methodology was based on the empirical data collected from Public Sector Banks, Private Sector Banks and foreign Sector banks in India for the
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