Facilitating Customer Relationship Management in Modern Business

Facilitating Customer Relationship Management in Modern Business

Kijpokin Kasemsap (Suan Sunandha Rajabhat University, Thailand)
DOI: 10.4018/978-1-5225-7766-9.ch004

Abstract

This chapter 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 chapter argues that facilitating CRM has the potential to enhance organizational performance and gain sustainable competitive advantage in modern business.
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Background

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).

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