Payne's Five Process Model

1.0 Introduction

Less than a decade ago, Customer Relationship Management (CRM) had developed into an area of major with the worldwide global market for CRM system consultancy estimated to grow to $US 47 billion by 2006 (Gartner 2003). Business have long been practicing some form of CRM even though the term or concept of CRM is relatively new because the principles and theory behind it are not new.

Payne’s Five Process Model is one of the CRM model to provide a guideline to organization that wanted to practice CRM in a right direction. Organization can use Payne’s model to set a basis to develop their CRM strategy as this model encompasses department that relates in the Payne’s model framework to effectively implement it.

In this research

This is what of CRM all is about. The myth towards the concept and meaning of CRM still exists and continuously growing. First of all, CRM can be understood as a business philosophy, a business strategy, a business process, or a technological tool. As a business philosophy reference Ryals and Know, (2001) expressed that CRM is a relationship focus, creating superior customer value and customer retention through the process of management. According to Croteau and Li(2003), CRM is a business strategy that is a customer-focused business strategy that set the objectives to enhance customer satisfaction and customer loyalty by presenting a more reactive and customized services to each customer. CRM is a business process was defined as a highly-aggregated process that subsumes numerous sub-processes, such as identification of customer and customer knowledge creation” (Srivastava, Shervani and Fahey, 1999). CRM in terms of technology perspective, it means it enable organizations to encourage closer relationships with their customers through technology (Hsieh,

Immediate incentives, for example, short-term advancements or cash off discount, tend not to motivate a move from single-period decision making to numerous period decision making (Lewis 2004). Delayed remunerate programs, conversely, support continuity loyalty (Lewis et al. 2004), which is the purpose behind loyalty programs. Related incentives are incentives that are identified with the consumer first purchases,for example, rewards points for pumping petrol by consumers and unrelated incentives are incentives that are not related to the first purchase done by consumer. For example, cash rewards after purchasing a