Customer Relationship Management : Customer Retention And The Firm 's Profitability

Customer Relationship Management : Customer Retention And The Firm 's Profitability

Length: 1536 words (4.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Customer Relationship Management
Customer Relationship Management primary purpose is customer retention and the firm’s profitability. This is accomplished through the use of personal, technology; in addition, different tools process, and activities. To be successful at customer relationship management the firm must be selective with their investments. The focus of customer relationship management shifted from just new customers to retaining the customers. This is to build up their loyalty to the firm’s brand. The relationship between the two impacts both parties and can be affected by individual and several transactions. This style of management emerged from relationship marketing which has focused on the lifetime connection with the customer. This type of marketing became popular in the 90’s because firms began to realize the value of their customers as tangible assets they could control.
Customer Relationship Management uses different technology to promote exclusive relationship for loyalty marketing. The marketing doesn 't focus on just sales, but relationship building to increase the profits. It is driven by the firm’s strategy and their technology uses automated processes, information systems, software, and call centers. This can help with understanding the customers better to ensure retention and profitability. Another purpose of Customer Relationship Management is the management of complex customer relationship, the cultivation of the customer-firm dialogue, and the adoption of the offerings and communication to different customers. Specific services and products can be offered which meets the customers’ needs through programs that unitize customers’ needs and wants.
The further application of Customer Relationship...

... middle of paper ... Class L taking a hit by dropping to 97.2% with at least one unit saved under Theft Nesting. The same scenario can be down with the reservation of fourteen units under SN with the Class L going to 95.4%. The Partitioned Allocation methods the Class H would be the same but the Class L would drop to 88.6% with nineteen units reserved.
The optimal choice of allocation method is always Theft Nesting. From the research it can be concluded that the reserved quantity has a Pareto-efficient for the allocation mechanism; depends on the decision makers preferences. The purpose of the research was to review the impact of the alternative allocation mechanisms. The service level which is the probability of meeting the demand and fill rate which what was done were use to develop the allocation mechanisms. Everything depend on certain conditions as put out by the decision maker.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Relationship Between Different Factors And Firm Profitability

- RELATIONSHIP AMONG DIFFERENT FACTORS AND FIRM PROFITABILITY Sher khan1, Hayat khan2, Amir Sohail2 , Zia ul Islam2 1 Institute of Business and Management Sciences, the University of Agriculture, Peshawar-Pakistan 2Department of Management Sciences, National University of Modern Language Islamabad Pakistan Abstract This paper is to identify the relationship among different factors and Firm Profitability as well as investigates that how different factors such as current ratio, quick ratio, inventory turnover ratio and debtor’s turnover are effecting working capital management....   [tags: Financial ratios, Inventory, Working capital]

Better Essays
2086 words (6 pages)

Examining the Relationship Between Profitability and Working Capital Management

- 3.3 Hypotheses Testing Objective of this study is to look at the relationship between profitability and working capital management, the study uses the same hypotheses as used by Raheman & Nasr(2007) Hypothesis 1 The first hypothesis of this study is as follows: H01: There does not exist any relationship between efficient working capital management and profitability of firms. H11: There is a relationship between efficient working capital management and profitability of firms. Hypothesis 2 The second hypothesis of the study is as follow....   [tags: Capital Management]

Better Essays
1689 words (4.8 pages)

Firm Resources And Sustained Competitive Advantage Essay

- Firm Resources and Sustained Competitive Advantage Understanding sources of Sustained Competitive Advantage is extremely crucial to survive in the industry and this has become a major area of research in the field of strategic management. This paper correlates the relation between firm resources and sustained competitive advantage, based on the presumption that strategic resources are distributed across the firm. The following framework (SWOT Analysis) is designed to model the structure of this research, showing how a firm can sustain its competitive advantage by implementing strategies that: Exploit Strengths, respond to Opportunities, neutralize Threats and avoid Weaknesses....   [tags: Strategic management, Strategy, Firm]

Better Essays
734 words (2.1 pages)

Impact of Earnings Management on Firms Profitability in Pakistan Essay

- Abstract This study is an attempt to examine the impact of Earnings management on the profitability of the firms. Earnings management has emerged as a vital issue in recent past for the firms, investors, analysts and the capital markets for profitability manipulation. The study was conducted on the companies listed at Karachi Stock Exchange. The sample included 98 companies comprising different sectors and taking five year financial data from annual reports of those selected companies from year 2002 to year 2006....   [tags: Business Management]

Better Essays
467 words (1.3 pages)

Customer Relationship Management, Organizational Performance, Manufacturing Industry

- Abstract: The purpose of the paper is to focus on the customer relationship management in manufacturing industry in Jaipur. Establishment the customer relationships have always been a vital aspect of business. Hence, this article purpose to clarify the effect of CRM practices to organizational performance in the manufacturing industry. The main purpose of the paper is the explain of the current state of customer relationships and utilizing of CRM in manufacturing industry. This paper explain the problem in practical conditions and determines potential opportunities for improvement in CRM....   [tags: Customer relationship management, Marketing]

Better Essays
811 words (2.3 pages)

Essay about Liquidity, profitability and WCM

- The purpose of this study is to develop a conceptual framework which measures the liquidity, profitability and working capital management of restaurants in Cagayan de Oro City for five-year period. The following studies and views were helpful in this study. This chapter discusses the review of some variables in relation to the profitability, liquidity and working capital management. Liquidity “When companies estimate and measure their liquidity, the focus is on bank levels and what funds they have at present” (Lamberg & Vålming, 2009, p.61)....   [tags: Business, Management]

Better Essays
1919 words (5.5 pages)

Investment in Fixed Assets and Firm Profitability in Textile Sector of Pakistan

- Investment in fixed assets and firm profitability in textile sector of Pakistan Literature Review: Investment is the sacrifice of present condition for the future perspective in which risk lies as the factor that can affect the investment decision. So, the investment in the fixed assets can be checked out through the fixed asset turnover ratio and we can know that how efficiently fixed assets are getting used to generate sales. High fixed asset turnover ratio indicates efficient utilization of fixed assets in generating sales and vice-versa....   [tags: business analysis, strategies]

Better Essays
1406 words (4 pages)

Customer Relationship Management Essay

- Customer Relationship Management Introduction 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....   [tags: Marketing Mix, Firm Strategy]

Better Essays
2135 words (6.1 pages)

Importance Of Customer Profitability Analysis For The Management Accountant And For Today 's Business

- Introduction The objective of this essay is to elaborate the importance of customer profitability analysis for the management accountant and for today’s business. Perhaps more than any other information, organizations would like to know the profitability of their product, customers, and any other business segments. Organizations want this information to decide what segments to drop and add value and which to emphasize. This essay will help us to have a firm grasp of the importance of customer profitability analysis in today’s business world....   [tags: Costs, Cost accounting, Cost]

Better Essays
705 words (2 pages)

Management Theories Essay example

- After the end of the Industrial Revolution, large corporations were beginning to grow in size and power in order to satisfy what seemed the endless demands for new goods and services. As corporations and labor forces grew, there was a need to develop a more systematic study of organization and management, known as management theory, the significant being Frederick Taylor's Principles of Scientific Management which involved the development of training workers through special incentives and compensation (Boone p.33)....   [tags: Business Management]

Better Essays
1270 words (3.6 pages)