Abstract
This article explains the overview of CRM; CRM and technological utilization; and the facilitation of CRM in modern business. CRM is a significant strategy to learn more about customers' needs and behaviors in order to develop the stronger relationships with them. CRM is the most efficient approach in maintaining and creating the relationships with customers in modern business. CRM helps business gain the insight into the behavior of their customers and modify their business operations to ensure that customers are served in the best possible way. CRM also helps business recognize the value of its customers and to capitalize on the improved customer relations. The article argues that facilitating CRM has the potential to enhance organizational performance and gain sustainable competitive advantage in modern business.
TopBackground
Effective CRM has emerged as a strategic imperative for companies in every business (Benmoussa, 2005). CRM has been recognized as a set of methodologies and organizational processes to attract and retain customers through their increased customer satisfaction and customer loyalty (Coussement & van den Poel, 2008). CRM is used to define the process of creation and maintain relationship with customers (Hassan et al., 2015). CRM is defined as the adoption of IT to develop new customers and retain old customers so as to keep the long-term customer relationship, which aims to improve customer relationship and can help increase customer loyalty, customer retention, and customer profitability (Hennig-Thurau, Gwinner, & Gremler, 2002).
The rapid growth of CRM systems raises the opportunity within many firms to effectively utilize the customer data over time to secure competitive advantage in modern business (Eichorn, 2004). CRM data is among the most important and comprehensive information available to executives in many organizations (Stein, Smith, & Lancioni, 2013). With the increasing importance of CRM in every industry domain, CRM classification practitioners demand a standardized framework with the streamlined data mining processes capable of delivering the satisfactory result for CRM data with all data mining challenges (Tu & Yang, 2013). CRM leverages information, technology, and people to create and deliver value to the targeted customer at a profit (Salim & Keramati, 2014).
Key Terms in this Chapter
Customer Satisfaction: The degree of satisfaction provided by the products or services of a company.
Marketing: The social and managerial processes by which individuals or companies obtain what they need or want through creating, offering, and exchanging products with each other.
Customer Loyalty: The likelihood of previous customers to continue to buy from a specific organization.
Marketing Strategy: The company's strategy that combines all of its marketing goals into practical results.
Customer: Individual that buys products or services.
Customer Retention: The assessment of the product or service quality provided by a business that measures how loyal its customers are.
Information Technology: The set of tools, processes, and associated equipment employed to collect, process, and present the information.
Customer Relationship Management: The management philosophy according to which the company’s goal can be best achieved through the identification and satisfaction of the customers’ stated and unstated requirement.