A Strategic Framework For Customer Relationship Management

CRM is a process that turns the customer’s data into customers’ loyalty through activities which is collecting customers’ data, analysing customer data and identify target customers, developing CRM through programs and implement CRM programs.

Chen, I, J. and Popovich, K. (2003) Understanding customer relationship management (CRM). People, process and technology. Business process management journal, Vol. 9 No 5. Retrieved from http://cis.csuohio.edu/~ichen/CRM.pdf

An effective Customer Relationship Management (CRM) program can be used to identify, retain, satisfy and obtain customers by using technology to optimize strategies for understanding customers’ needs to manage business interactions with current, former, and prospective customers. Additionally, CRM also enables companies to maximize internal, external, marketing and customer service operations to better address the needs of the customer building a better relationship with customers that a more profitable. (Ahmad & Buttle, 2001)

* CRM is a strategy resulting in developing the most appropriate relationship with a customer, a process that is supported by technology and that may not necessarily yield deep or strategic partnerships with all customers.

In today’s competitive market, all customer facing organizations (including banks), have realized the importance of customer insight, to grow further. A good CRM strategy is a key factor to differentiate with competitors and create good branding among customer base. Any Bank that cannot leverage CRM, have failed to improve revenue and customer satisfaction.

In order to establish a suitable CRM system and increase the success rate, understanding CRM processes is especially important. Building CRM system, there are many works need to do(). Firstly, the target customer market should be identified. Different customer strategies are focused on different target customer markets based on their profitability. Then, firms set customer objectives, for example, acquire customer satisfaction and loyalty. After that, the leaders and managers should support and commit the implementation of a CRM system. At the same time, when companies change their targets, a plan about changing

Customer relationship management plays a vital part in a typical business 's marketing system. CRM is a process of gathering and analysing customer

Reinartz et al recommended three sorts of CRM procedures and created parameters to quantify the level of corporate CRM process, where client maintenance and development procedures are coupled into a solitary CRM upkeep process. Despite the fact that the corporate activities utilized for expanding client offer can likewise be utilized to hold clients, recent studies show that expanding client offer may require systems not the same as the one for holding clients. Companies are always focusing on the quality of the outcome from the manufacturer but customer

A new focus and new strategic marketing efforts have changed from over the last twenty years. We no longer only focus on the 4 P’s of marketing with generalized and large segment marketing, because it does not focus on individual wants, desires, needs and personal customer attention (Bang, 2012, p. 400). Previous generalized efforts, does not keep the customer front and center and there isn’t enough focus on doing business ethically, sociably, or culturally. These days, customers have many options at their fingertips via the Internet. There are many companies reaching out and persuading people around the clock from all over the world. So, having a strong CRM program in place is vital. Having a competitive advantage is one thing, but relating with your customers on a personal, ethical, and in socially responsible manner will provide an advantage and sustainable customer relationships. A company must start with the basics,

The second proposition suggests CRM refers to the collection of data and activities. Implementation of CRM solutions require firms to have customer relational orientation. P2: “The field of CRM has begun to converge on a common definition” [1]. CRM represents evolution beyond existing ideas and it requires integration across different functions. The concept of CRM solutions creating simultaneous value for both customer and firm, and CRM relates to strategy and intelligent use of technology gives us viewpoint of the proposition three.P3: “Companies have developed proven CRM practices that enhance firm performance.”[1]

Customer Relationship Management (CRM): Customer relation management (CRM) is a cross functional enterprise system that computerizes numerous customers serving form in direct marketing, sales, customer service and accounting management. CRM allows a company to distinguish and focus on their best customer so that they can be held as a loyal customer for a longer period of time.

Customer relationship management (CRM) is an approach that company’s use to manage, analyze and interact with customers. It refers to the practices, strategies and the technologies used by companies to understand the customer’s needs and behavior in order to create and build relationships with customers and to follow them throughout the customer lifecycle with a focus on increasing & retaining customers with driving the sales growth.

A CRM strategy must search what are the business procedure and systems that affect clients, including marketing, sales, purchasing, customer service, technical support, and business intelligence/customer analytics. As with any approach, it is vital that you do your investigation, and are very certain from the outset about what your main goals are going to be, both in the short-term and the long-term.

[CRM] is about understanding the nature of the exchange between customer and supplier and managing it appropriately. The exchange contains monetary considerations between supplier and customer – but also communication. The challenge to all supplier organizations is to optimize communications between parties to ensure profitable long-term relationships. CRM is a key focus for many organizations now as a shift away from customer acquisition toward customer-retention and churn reduction strategies dictates a need for best practice CRM processes.

Parvatiyar and Sheth (2009) defined CRM as a complete detailed action plan and process of acquiring, retaining, and partnering with selective customers so as to benefit both parties. CRM involves combining a number of elements which includes marketing, customer service, sales and the supply-chain functions of the firm so as to become more effective, efficient and better in delivering customer value. Building good relationships with customers can result to greater profitability, revenue, market share, sales, customer loyalty, and retention.