Customer Relationships Management

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Customer relationship management (CRM) is a business philosophy and set of strategies, programs, and systems that focuses on identifying and building loyalty with a retailer’s most valued customers (Levy, Weitz 275). A loyal customer is one who is committed to purchasing merchandise and services from a specific retailer, he or she resists the efforts of competitors, and also has an emotional attachment to a retailer. The four steps involved in the formation of a CRM program are collecting customer data, analyzing customer data, developing a CRM program, and implementing the CRM program. Implementing CRM programs can be extremely beneficial in increasing business and creating/maintaining a competitive edge. They also categorize customers…show more content…
Although CLASS is a relatively low-tech system, its application has been successful and its future looks promising. Each employee’s uniform is included with a “guest-preference pad.” On this pad, employees note any guest preferences and then forward the information to the guest recognition office. Ritz-Carlton looks forward with CLASS with ample hopes and expectations. Their vision is that all employees, in time, will be able to access CLASS directly. Furthermore, Ritz-Carlton is looking into implicating technology into their employees’ routine responsibilities. They’re exploring the benefits of utilizing portable hand-held devices. This utilization will aid company-wide access to the database. While CLASS has provided the Ritz-Carlton with a system of consistency, the technology would be worthless without their staff. As corporate manager of guest recognition points out, "Our people supply the initial information that is added to the system as well as carry out the services detailed within the system. If our employees didn 't put the information to real, concrete use the system would be worthless" (For Ritz-Carlton, It All Begins With Customer Knowledge). Much like the Ritz-Carlton, Neiman Marcus focuses much of its CRM program towards giving the customer the best experience. The primary component of their CRM program is their InCircle rewards card. With the card, customers take out a line of credit
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