The Importance Of Customer Relationship Management

928 Words4 Pages
Introduction The operational excellence of a firm during difficult economic times is critical owing to the fact that firms cannot afford to have long-time marketing cycles, quality issues and high-cost operations to meet final profit. In order to ensure that all their business processes run smoothly, firms need to implement some valid operational systems like customer relationship management, which will help them focus on transactional processes and create competitive advantage. The dynamic nature of the business world has brought forth a new wave of combining management excellence with operational excellence and firms reconcile the stakeholders' needs by deriving the needed value from the performance network. This is achievable through the…show more content…
A multifaceted definition by Laketa (2015) defined it as the strategic methodology that an organization takes in the identification of its customers, creation of knowledge about them, building strong relations and shaping the organization-cum-product perceptions. The process of establishing Customer relationship management requires a wide range of knowledge of the needs and habits of customers as it assumes constant information collection of the behavioral antics of the customers. Customer driven initiatives duly depend on three major key points which include customer loyalty, customer contentment and customer perceived values which are all propped up in order to achieve both patronage and profitability (Lindgreen, 2016). Contemporary researchers have identified that the use of the transaction marketing procedure which involves the 4ps of promotion, place, price, and product is insufficient in the overall process of carving a niche in the competitive market by organizations. Firms have to formulate methods that could divide their customers into various groups with various needs in order to meet different kinds of needs and not to make their followers feel frustrated. With the implementation and adoption of CRM into their business processes, firms will be able to identify…show more content…
First, marketing concept model means the relationship between the customer and the firm is for profitability purposes. Second, supply chain model involves the relationship between the participants in the chain who ensure its efficiency to meet the requirements. Last, stakeholder model aims at meeting all the required needs of the firm's stakeholders.) It gives the firm an opportunity to learn the behavioral mannerisms of its customers and to design and provide them based on their expectations. The development of globalization and competition can be regarded as a key factor that drives marketing practitioners to build advanced relationships by the use of technology so as to make the marketing methods more feasible by recording transactional details. Relationship marketing has also improved the growth of direct marketing and enabled more companies to enter into singular relationships with their customers (Eriksson,

More about The Importance Of Customer Relationship Management

Open Document