Customer Relationship Management
Marketing has evolved substantially with the advent of technology. Technology has not only introduced additional communication channels to marketers but also allow them to collect large amounts of data and analyse it efficiently to improve segmentation, communication within segments and designing products to meet the needs of customers. Technology provides customers with more power since they are now able to easily compare offerings from various organizations and selecting the offer with the highest perceived customer value.
In order to remain competitive organizations need to understand their customers better, but Maklan, Knox, and Ryals (2008) argues that it is increasingly difficult
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Boulding, Staelin, Ehret, and Johnston (2005) investigated whether CRM is fundamentally different from traditional marketing principles “whereby a firm maximizes profits and consumers maximize utility.” (p.155) and that instead of a paradigm shift CRM is “the outcome of the continuing evolution and integration of marketing ideas and newly available data, technologies, and organizational forms.” (p.156). However Boulding et al. (2005) further explains that theorists “also talk about the dual creation of firm and customer value" (p.156) indicating that organizations do not create value in isolation but now do so in collaboration with the customer who also share in the value. This supports the hypothesis that CRM is fundamentally different from traditional marketing with Boulding et al. (2005) concluding that although it can be argued CRM is not substantially different it “represents an evolution beyond repackaging of existing ideas” (p.156). More evidence is provided from a strategic perspective where “(CRM) is more than simply providing an information technology solution and building the customer information database – it is an organization process that enables a firm to measure its customer equity and manage customer relationships so as to