The paper "Customer Relationship Management" is a perfect example of a management essay. How well a company maintains its relationship with its customers may well determine its success. Knowing its customers and focusing on their needs enables a business to better deploy resources towards an effective outcome for everyone. Many believe that CRM or Customer Relationship Management is a new way of doing business as it enables the building of close relationships between the representation of a business and its customers. The following section investigates the nature of CRM and how does CRM accomplishes its tasks. Customer Relationship Management What is CRM? CRM or Customer Relationship Management means different things to different people.
Others believed that is a managerial philosophy closely linked with marketing (Stahl 2004, p. 120) and for those groups who believe that not all customers want a relationship with a supplier, omit the word relationship, preferring the term customer management. Some opt for the expression ‘ relationship marketing’ . However, whatever people think, CRM is obviously a ‘ business practice’ (Buttle 2004, p. 3). According to Stahl (2004, p. 120), CRM is the outgrowth of two recent trends across industries.
First, customers in all markets have more choices and more power than ever before. Industry after industry managers agrees that customers are setting the bar higher and what used to be considered a satisfactory customer response in terms of products and services is no longer sufficient. The three factors driving this trend are increased competition, splintered markets, and product information proliferation. Second, new technology such as computing powers, databases, and data analysis techniques has created an explosion of customer information, often at the level of a single transaction.
This has exponentially increased an organization’ s ability to track, understand, target, and form more lasting relationships with customers, down to the level of an individual customer. The CRM philosophy embraces the concepts of ‘ mass customization’ , literally a one-to-one approach to the marketplace.
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