Marketing Research (MKT 641)
Customer Relationship Management
Date Submitted: 7th of December 2004
What is Customer Relationship Management (CRM) System?
Customer relationship management (CRM) is about understanding the nature of the exchange between customer and supplier and managing it appropriately. The exchange contains monetary consideration between supplier and customer, but also communication. The challenge to all supplier organizations is to optimize communication between parties to ensure profitable long-term relationships. (Jeffrey Peel, VP of Global Marketing at Roper Starch, Princeton).
CRM is a corporate philosophy because it is a fundamental approach to doing business. That approach is to be customer- focused and customer- driven, running all aspects of a business to satisfy customers by addressing their requirements for products and by providing high- quality, and responsive service. (Peter Hutton, Deputy Managing Director, Market & Opinion Research International, London).
There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake.
The more useful way to think about CRM is a process that will help bring together lots of pieces of information about customer, sales, marketing effectiveness, responsiveness and market trends. Companies are now desperately trying to figure out ways to manage customer relationship effectively, not only to acquire new customers but to retain their existing ones. According to a Harvard Business Review study by Reicheld & Susser, some companies can boost profits by almost 100 percent by retaining just 5 percent of more of their customers. The idea is to have the same information available to all in the company so customers don't go through hoops to get their needs met. Most customers leave instead of trying to explain their problem or issue over and over to a different company representative. CRM implies that everyone in the enterprise is focused on the...