A Business Case Study: Customer Relationship Management

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1. Introduction
Customer Relationship Management (CRM) is a business approach that seeks to create, develop and enhance relationships with carefully targeted customers in order to improve customer value and corporate profitability and thereby maximize shareholder value (Payne, 2005). Thus, CRM should really increase customer profit-ability as most customers are only profitable in the second year that they do business (Anderson and Kerr, 2002).
Keeping customer to be loyal is not easy job to do. Some of them seek excel-lence service from their supplier and intangible satisfaction in its exchange process. That is why many suppliers try to find out how to please their customer in their own ways. However, CRM concept that usually associated in
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Surely this assumption is not true all the way, since that CRM implementation (especially using information technology) can be done in simple way and cheap investment.
In this paper, we took sample case for small handicraft industry that located in Denpasar city, at Bali – Indonesia. As we know that Bali is famously known as heaven of tourism industry and great handicraft industry. However, handicraft in-dustry in Bali often comes from home industry that implement hit and run market-ing strategy. So, foreign tourist that actually want to order handicraft at second time (from their own country) rarely can be serviced just because distance and trust barri-er.
Especially for exclusive handmade handicraft that needs long time to finish, the home industry is losing trust from their customer because foreign customer (formerly tourist that already come and buy their product at Bali) cannot see their working process and also they have difficulty in payment
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While the abbreviation defined differently, the definition of SME itself also vary in every country. Since that each country has its own quantitative measure for enterprise size.
Since that this case is applied to Indonesia, then definition of SME is refer to how Indonesian government categorize enterprise. In this manner, SME in Indo-nesia is defined as enterprise that has employee less than 20 (Mc Gregor and Karti-wi, 2009).
Other quantitative measure of SME is about management range that lack of trained staff and also has small management team (Mc Gregor and Kartiwi, 2009). SME also has difficulties in IT literature knowledge that makes it limited contribu-tion in e-commerce area (Chong and Pervan, 2009).
Empirical study already showed that SME, especially in developing country, having so many barrier in implementing online CRM (Mc Gregor and Kartiwi, 2009;Chong and Pervan, 2009). However, some of SME can implement it even though they must struggle to survive. While theoretical view said that implementing internet technology should not be a big problem to implement in many kind of in-dustry (Porter,
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