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The Four Dimensions Of Customer Relationship Management

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Experts and theorists have different definitions for customer relationship management that can be classified in four general groups containing strategies, technologies, processes and information systems (Thompson, 2004). Some of the definitions for customer relationship management from the view of different theorists are as follows: CRM is a part of the organization strategy for identifying and keeping customers satisfied and converting them to a repeat customer. In addition, in line with the customer relationship management, it helps the company in order to maximize the value of every customer (Turban et al., 2003).

Secondly, CRM is a set of methodologies, processes, software and systems that helps institutions and companies in creation …show more content…

Some scholars refer to this as customer acquisition; it involves targeting the population who are most likely to become customers or who are source of potential profitability. Kracklauer et al (2007) describe it as involving the analysis of customers who were previously lost to competitors and how they can be won back into the organization.
2.4.2 Customer Attraction-having identified the segment of potential customers; organizations can direct attention and resources towards target customer segment. According to Adiele and Gabriel (2013), an element of customer attraction is direct marketing and direct marketing according to Chen et al (2005) is a promotion process which motivates customer to place order through various …show more content…

Switching to customer loyalty occurs in the fourth phase when this purchasing conviction becomes repeated purchase and recommends the product or service to other potential customers. The chain ends with the fifth phase which leads to the economic success of the enterprise. The more competitive a market is, all the more difficult is to get customer loyalty through the satisfaction offered by the products/services delivered [Daffy, 2009]. Customer loyalty is not the result of strategies implemented by the organization or customer clubs. To create effective retention strategies, organizations need a thorough understanding of customer behavior and needs. Loyalty is a physical and emotional commitment given by customers in exchange for meeting their expectations. Emotion represents the feelings, positive or negative, brought to mind by an object or idea [Budică, Barbu, 2010]. Loyalty is best defined as a state of mind, a set of attitudes and desires of the client, but they derive from his psyche [Martin,

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