chapter15-090721104640-phpapp02

chapter15-090721104640-phpapp02 - Chapter 15 Customer...

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Unformatted text preview: Chapter 15 Customer Relationship Management (CRM) Learning Objectives Define CRM; Understand the importance of CRM; Explain the determinants of CRM and the key stages in its development; Discuss the main functions and various models of CRM; Explain the role of salespeople as relationship developers Discuss the management of customer relationships. Chapter 15: Customer Relationship Management (CRM) What is Customer Relationship Management (CRM)? CRM is the development and maintenance of mutually beneficial long-term relationships with strategically significant customers (Buttle, 2000) CRM is an IT enhanced value process , which identifies, develops, integrates and focuses the various competencies of the firm to the voice of the customer in order to deliver long-term superior customer value , at a profit to well identified existing and potential customers . (Plakoyiannaki and Tzokas, 2001) Chapter 15: Customer Relationship Management (CRM) Understanding Customer Relationship Management (CRM)? CRM is a business philosophy based on upon individual customers and customised products and services supported by open lines of communication and feedback from the participating firms that mutually benefit both buying and selling organisations . The buying and selling firms enter into a learning relationship , with the customer being willing to collaborate with the seller and grow as a loyal customer . In return,, the seller works to maximize the value of the relationship for the customers benefit . In short, CRM provides selling organisations with the platform to obtain a competitive advantage by embracing customer needs and building value-driven long-term relationships . Chapter 15: Customer Relationship Management (CRM) Determinants of CRM Trust The willingness to rely on the ability, integrity, and motivation of one company to serve the needs of the other company as agreed upon implicitly and explicitly. Value The ability of a selling organisation to satisfy the needs of the customer at a comparatively lower cost or higher benefit than that offered by competitors and measured in monetary, temporal, functional and psychological terms. Chapter 15: Customer Relationship Management (CRM) Determinants of CRM In addition to trust and value , salespeople must : Understand customer needs and problems;...
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This note was uploaded on 06/08/2011 for the course HOUSE 4 taught by Professor Mr.thai during the Spring '11 term at Fundacion Universitaria Panamericana.

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chapter15-090721104640-phpapp02 - Chapter 15 Customer...

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