Customer Relationship Management And Customer Loyalty Essay

1569 Words Jul 21st, 2016 null Page
Customer Relationship Management and Customer Loyalty

Customer Relationship Management (CRM) is a software program that retailers are using to increase loyalty from their best customers and grow their business. Customer Relationship Management is a business philosophy and set of strategies, programs and systems that focus on identifying and building loyalty with a retailer’s most valued customers” (Levy & Weitz, 2011, p. 275). Creating a relationship with a retailer’s most valued customer is different from trying to get as many customers as possible. CRM relates to a company’s attempt to take the customers who are already loyal and purchase goods or services frequently and target that patron with more personalized attention. Research indicates that this approach is more profitable than generating sales from new customers or the customers that make occasional purchases (Levy & Weitz, 2011). This paper will address the concept of customer loyalty and how the Customer relationship management program can help to achieve customer loyalty and how it can hinder it. What is customer loyalty? Customer loyalty can be defined in many ways. Michels and Bowen claim customer loyalty is “a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behavior” (as cited in Sivadas and Baker-Prewitt, 2000). It has also been said to be the…

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