Customer Relationship Management ( Crm ) Practice? Essay
To find the most profitable customers in Customer Relationship Management (CRM) practice is an ongoing process where many companies fail to deliver the answer. This paper outlines various definitions of CRM, strategies, processes and the use of technology along with the various paradoxes that accompany CRM.
Defining CRM is not straight-forward as there are numerous definitions, the basic framework of CRM is, an overall process of building and maintaining profitable relationships by delivering customer satisfaction, customer value (Sen and Sinha, 2011) and enabling a firm to measure it’s customer equity as to improve the firm’s profitability (Fan and Ku, 2010). CRM is a strategy involving people, processes and technology, including marketing, sales and customer service (Wang, 2004). Though CRM is practised in a wide range of commercial contexts, it can be used in different ways. This applies to business to business (B2B), business to customer (B2C), customer to customer (C2C) or customer to business (C2B). CRM is not solely based on external relationships but internal relationships within a company. Each department must be aware of the internal customers it serves as CRM is associated with internal customer satisfaction. These customers who are in the front line, such as human resources, supply chain management.
For CRM to succeed within the hospitality and tourism it is thought that loyalty is vitally important and the longer the company keeps its…