`Chapter 1 INTRODUCTION In recent years a lot of works have been done on the efficiency of customers Relationship management and customers Retention which makes this topic highly prominent in different academics and attracts attentions of scholars, researches to work on it. In any organization customers have different economic value to the company and companies design their communication strategies according to the customer desires and demands. Past studies have forces on components of CRM strategy like the link between customers satisfaction and business performance (Kamakura.al 2002); (Reinartz and Kunav 2000), Customers profitability heterogeneity (Niroy,Gopta and Narasimhan 2001),customers loyalty programs (Verhoef 2003), Many organizations
3- Research literature Customer relation management The term CRM came up with its current concept since the 1990s and was developed in the form of a business strategy to select and manage the most valuable communications with customers. CRM requires a customer-oriented philosophy and supporting culture of the effective marketing, sales and after-sales processes in the organization. Customer-oriented culture is based on a simple concept of one-to-one communication between customers and salers. This attitude looks to each customer in the eyes of a person with his wants, purchases, and needs. By utilizing CRM, customer relationship with the company and its needs are analyzed and analyzed.
Tamosiuniene and Jasillionene (2007)1 explained vision in terms of CRM as the creation of picture of what the customer- centric enterprise will look like to ensure that a competitive position can be created in the market place. Evengelia and Michalis (2006)2 In his journal customer relationship management CRM is a strategy than can help them to build long lasting relationship with their customers and increase their profits through the right management system and the application of customer focused strategies CRM in the banking sector is of strategic importance. Lindgreen et al (2006)3 have explained that CRM strategy consist of customer strategy, brand strategy and customer interaction strategy. CRM is a business approach that integrates people,
1. Explain to Mrs. Wen what CRM is and how CRM is different from traditional marketing. Customer Relationship Management (CRM) is a term that refers to practices, technologies, and strategies that organizations use to oversee and analyze customer interaction and information. This is done through use of the consumers’ lifecycles, with the objectives of enhancing business relationships with customers, helping with customer retention, and increasing profitability. It is basically a system created by the company to interact with its customers effectively and efficiently.
I have sadly come across so many company policies that inhibit employees from delivering customer satisfaction, the result of which is poor sales growth and a decline in repeat business. Let us remember that without regular customers making frequent purchases then there can be no business. Businesses flourish or whither based on their ability to deliver customer satisfaction and develop a loyal customer base. Three positive effects of customer loyalty 1. Revenue increases due to repeat purchases and referrals 2.
Companies also outsource in order to reduce the workload on their employees (freeing them to take on additional moneymaking projects for the business), or to provide more development opportunities for their employees by freeing them from tedious tasks. Focus. Some companies outsource in order to eliminate distractions and force themselves to concentrate on their core competencies. This can be a particularly attractive benefit for start-up firms. Outsourcing can free the entrepreneur from tedious and time-consuming tasks, such as payroll, so that he or she can concentrate on the marketing and sales activities that are most essential to the firm's long-term growth and prosperity.
Their competitors have been increasing in number in the last several years. It is an outcome driven by the firm’s continued outsourcing of their services which has helped build small companies and limit their growth in knowledge and expertise. Furthermore, their focus on consulting services has left them in a highly saturated market with no exit strategy. It is a sector with low barriers of entry, but also a massive availability of options of substitute service providers, meaning low market share and growth locally and internationally. To date, the company has remained resilient, but they need to keep away from large corporations and be firmer in their venture to involve in serving small and medium-sized companies.
Risk diversification Advantages and Disadvantages of Outsourcing Outsourcing is also commonly called as offshoring and has its own pros and cons. The advantages of outsourcing: • Expertise: Most of the times tasks are outsourced to vendors who specialize in their field. These vendors possess specialized equipment and technical expertise and too often it is better than the outsourcing company. So this way the assigned tasks by the company can be performed much faster with better quality. • Concentrating on core process rather than the supporting ones: Outsourcing process allows the company or the organization to give more time and attention to their core business processes thus in a way strengthening the company.
The research findings indicated the size of the firm does not matter for maintain relationships. This CRM technology should not be branded as an approach only for a large organization but it also holds good for medium and small organization. Bang Nguyen, Dilip S. Mutum (2012) provides improvement in Customer Relationship Management, the changing role of customer, issue with conceptualization and customer exploitation. The author combines the concepts of fairness, trust paradoxes of one marketing which are not much researched with customer management. The author is of the opinion that if the Customer Relationship Management scheme is overly used and misused, it may result in depleting customer trust.
The CRM approach analyzes data about customers ' experience with the organization, in order to improve business relationships, specifically focusing on retaining customers, in order to drive sales growth. CRM (Customer Relationship Management) is software that is used to record, track, and report on all prospect, customer, and vendor activities and transactions. CRM allows the travel agency to have information that is immediately available, complete and up-to-date, enabling them to respond appropriately to any request, to increase effectiveness and success. Importance of Customer Relationship Management (CRM) in a Travel Agency Customer Relationship management is the strongest and the most efficient approach in maintaining and creating relationships with travel customers. Customer relationship management is not only pure business but also ideate strong personal bonding within people.