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Crm Conceptual Framework

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“Listening to customers must become everyone’s business. With most competitors moving ever faster, the race will go to those who listen and respond more intently”. -Tom Peters, Thriving on Chaos

Chapter 1: Conceptual Framework for CRM

What is Customer Relationship management?

Before we begin to examine the conceptual foundations of CRM, it will be useful to define what is CRM. A narrow perspective of customer relationship management is creating a team relationship among sales, marketing, and customer support activities within an organization.
Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made.
Shani and Chalasani define relationship marketing as “an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for mutual benefit of both sides, through interactive, individualized and value-added contacts over a period of time”.
The core theme of all CRM and relationship marketing perspectives is its focus on co-operative and collaborative relationships between the firm and its customers, and/or other marketing actors.
CRM is based on the premise that, by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them.
Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries by Info quest.
The conclusions of the study were: • A Totally Satisfied Customer contributes 2.6 times more revenue to a company as a Somewhat Satisfied Customer. • A Totally Satisfied Customer contributes 17 times as much revenue

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