The paper 'Customer Relationship Management - KLM Royal Dutch Airlines" is a good example of a management case study. In today’ s highly competitive business environment, a considerable number of organisations have realised the significance of becoming highly customer-centric. As a result, these organisations have invested a substantial amount of their resources and time in “ Customer Relationship Management” (CRM) with the aim of enhancing and managing their relationships with their customers. CRM can be defined as an elaborate business model or strategy that is often used to enhance and manage a company’ s interactions or relationships with its sales prospects, clients, and customers (Payne & Frow, 2005).
According to Jha (2008, p. 1), “ CRM is a multifaceted process that is mediated by a set of information technologies which focus on developing two-way exchanges with customers so as to enable a company to have a concise knowledge of customer needs, wants and buying behaviours” . Basically, CRM helps companies to understand and even anticipate the needs of their clients and potential customers. This can in turn help companies to enhance their profitability and realise positive business outcomes (Jha 2008).
However, there are various issues and challenges that affect the application of CRM in modern-day businesses or companies. This report seeks to provide a critical outlook on CRM. Foremost, it will provide an in-depth description and overview of CRM. Secondly, this report will examine the application of CRM in modern-day organisations. In this case, it will provide two examples of organisations which employ a CRM model and it will subsequently appraise the effectiveness of this model in these organisations. Thirdly, this report will explore the issues and challenges revolving around the application of CRM in organisations.
In addition to this, it will discuss the potential impact of CRM in organisations. Description and Overview of CRM Payne and Frow (2005) observe that CRM is essentially a cross-functional organisational process that mainly focuses on enhancing and maintaining long-term interactions or relationships with customers. Similarly, Jha (2008) notes that CRM is basically a multifaceted process that is aided by different sets of information technologies that are geared towards developing two-way exchanges with customers in order to enable an organisation to get concise information regarding the wants, needs and buying habits of their customers.
According to Artos Origin (2002), CRM is generally a business philosophy that gives vision and direction to an organisation on how to relate or deal with their customers. A CRM strategy essentially gives shape to an organisation’ s sales, customer service, marketing, and activities relating to data analysis.
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