Customer Relationship Management

As a Business Administration major I have learned there are several different components that make up a successful business, and it is important that everyone work together to achieve a common goal. The ultimate goal of most companies is to create a product or service that will gain a place in the market and stay there. Customer relationships are the most important factor for companies to consider when aiming toward success. What can companies do to improve customer relationships? Improving customer loyalty means the customer keeps coming back even if they are not always completely satisfied with the product. When I think about what brings customers back, and the most important part of a company’s success, it is undeniably customer relationship management. With it being easier for customers to shop from their home or office, and the growing competition making it easier to switch, the relationships become increasingly more important every day. Focusing more effort on customer retention and loyalty in customer relationships would improve their chances of surviving in the market.

Companies are now turning to this business strategy supported by information technology. These customer service programs are designed to assist in a company’s business operations. Companies like Siebel, E.piphany, Oracle, Broadvision, Net Perceptions, Kana and others have designed products that do everything from track customer behavior on the Web to predicting their future moves to sending direct e-mail communications. Customer Relationship Management can improve: Contact and account management, sales, marketing and fulfillment, customer service and support, and retention and loyalty. The part that deals specifically with the needs of the cust...

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...to, what promotions to send to certain customers, and can inevitably save marketing dollars in the process. The management part of the programs is equally important. Once companies see progress or no progress with a customer they have to decide on an appropriate action. Companies do not want to sit back and watch customers disappear. Measuring the benefits will help companies identify their best customers and eliminate negative information flow between customers and the company. Customer Relationship Management has impacted the business world and changed the way customers are handled and the way customer satisfaction is valued.

Murphy, John A. (2001). The Lifebelt: The Definitive Guide to Managing Customer Retention. New York: John Wiley & Sons, Ltd.

(2001). Harvard Business Review on Customer Relationship Management. Boston: Harvard Business School Press.