Customer Relationship Management and Recent Developments

In the past two decades, the notion of “customer relationship management” (CRM) has been widely discussed and researched. The associated language (such as “customer satisfaction”, “customer retention”, “spending habits of customers” and “analytical CRM systems”) and job positions (such as “customer relationship managers” and “customer services officers”) have been developed. The paradigm has been shifted from a transaction-based model to a relationship-based one with emphasis on acquisition, development and retention of profitable relationships. Findings from various studies justified the need of CRM for long-term business sustainability. Customer relationship management is widely regarded as an essential philosophy of doing business that focuses on customer retention and enhancement. The successful implementation of CRM results in the reduction of defection rates, reduction of costs and enhancing revenues. A considerable number of failure cases alert practitioners that its success is dependent not only on technical development but also on emphasis, such as strategic, marketing, social, and cultural perspectives. With the development of globalization and abrupt changes to the business environment, organizations need to be kept abreast of CRM developments and insights on how customers could be retained and enhanced. A considerable number of studies have focused mainly on the technological development of CRM. This helps to forecast the trends of prospective and current customers. Nevertheless, CRM does not start from technology but from attitude and training of each individual staff member, especially to services that are highly intangible and therefore difficult to understand. No matter how “excellent” you claim your services to be in public, the “moment of truth” speaks for itself. Reliability, empathy and assurance have impacted if the customers consider their re-purchase behavior.