Literature Review On Customer Relationship Management

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Saiman Shetty | Literature Review
Customer Relationship Management
Page 5
2. Definition and Evolution of CRM
Different authors define Customer Relationship Management in various alternative ways .However; throughout this literature review we shall adopt the approach of Payne and Frow [1] who comprehensively define CRM as the strategic development of relationships with important customers and customer segments. This process helps create long term profitable relationships with customers and stakeholders by utilizing the power of marketing and information technology. CRM is a cluster of interfunctional business processes, operations, marketing and people enabled through the application of technology and innovation.
Differences in CRM definitions exist between the business
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There is a deep connection between the two since strong customer loyalty arising from good CRM creates barriers to competition and increases profitability. Moreover, according to Bell in [5], customer base is an asset that needs to be managed in a timely manner.
2.2. Emergence of early CRM models
As competitors increased in number and new data analytics technology became available, it was essential to consider and focus on the value the customer base possesses. Marketing research was initially concentrated around customer acquisition and retention [6]. Organizations acquire information on potential and existing customers to segment them and strategize service provisions. In the present scenario, organizations must step beyond strategic segmentation and achieving profitability through product customization and resource management to increase the value of the company in the process.
It was soon realized that there existed a value of customer asset that can be described by [7] as follows. Saiman Shetty | Literature Review
Customer Relationship Management
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