Customer Relationship Management (CRM)

Customer Relationship Management (CRM) - Customer...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Customer Relationship Management: A Global Perspective* Gerhard Raab Transatlantic Institute, Ludwigshafen University of Applied Sciences, Germany Riad A. Ajami Wright State University Vidyaranya B. Gargeya University of North Carolina at Greensboro G. Jason Goddard Wachovia Corporation * Forthcoming 2008: Ashgate Publishers
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 CRM Defined Firms that are relationship focused are, by definition, not focused on transactions, and seek long-term, profitable, durable relationships Durable means building up customer trust, aiming at high customer regularity, and cultivating life-long relationships Overall, customer profitability entails knowing the needs, desires, likes and dislikes of your target customer base Successful firms stay ahead of the competition by anticipating the needs of their clients Customer Loyalty = Company Profitability
Background image of page 2
3 CRM Perspective In Service Businesses, the ability to best know the customer is through interpersonal relationships, which proves that the firm’s largest asset is its employees Intellectual Capital of Firm is Important Is knowledge embedded in the Firm, or is it migratory? Customer knowledge can leave the Firm when employees leave, so keeping them happy is an important ingredient to success
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Customer Orientation Customer Retention Customer Profitability Customer Satisfaction Personnel Technology Organization
Background image of page 4
5 The Three Pillars of CRM Personnel Firm’s most important asset: Internal Customers If they are satisfied, job performance and productivity should increase Technology Used to measure customer profitability Used to understand buying patterns of customers and to project their future needs Organization CRM focus must be company-wide, as opposed to just the sales and marketing areas
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Thorstein Veblen on CRM The customer…“is not simply a bundle of desires that are to be saturated by being placed in the path of the forces of the environment, but rather a coherent structure of propensities and habits which seeks realization and expression in an unfolding activity.” “Why is Economics Not An Evolutionary Science?” QJE, 1898. 1857-1929
Background image of page 6
7 Advantages of CRM As we mentioned, loyalty = profitability Unhappy customers are often much more vocal than satisfied customers Understanding the nature of the complaint is key to fixing the problem Satisfied customers tend to stay longer Less marketing and sales costs to keep them Often, they are less price-sensitive Rate of repeat purchases climbs with satisfaction Companies wish to increase their “share of the wallet” of their best customers
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 CRM Chain of Effects The CRM Chain of Effects is summarized as follows: Customer Orientation Product Quality Customer Satisfaction Customer Retention Customer Value Company Success Each step in the chain is influenced by the Personnel, Technology, and Organizational structure of a given firm
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/24/2010 for the course MBA 720 taught by Professor Ajami during the Summer '09 term at Wright State.

Page1 / 35

Customer Relationship Management (CRM) - Customer...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online