Customer Relationship Management
...1-Introduction
The impact of customer relationship management on the financial performance of an organization
2
1.1 Introduction
This chapter provides an overview of the dissertation in brief. Background of the
study and rationale of the study are discussed in the first half. Then this chapter goes
on to explain six research objectives and two research questions. Finally structure of
the dissertation is discussed.
1.2 Research context
Customer relationship management, because of its nature, technological
advancements, and its ability to attract and retain potential customers has received
tremendous attention form the organizations. CRM when deployed effectively helps
organization to focus directly on customer and succeed in customer-centric
environment.
The concept of customer relationship management (later referred as CRM) is not very
old. It originated from the early 1990’s because of the emerging demands in the world
(Ling and Yen, 2001; Xu et al., 2002). The roots of customer relationship
management can be seen in relationship marketing by which long-term profitability
can be achieved through a shift from transaction-based marketing to customer
retention by aiming at effective management (Christopher et al., 1991). The base of
customer relationship management is relationship marketing and it stresses on profits
generated through customer, lifetime value, retention and satisfaction created through
implementing effective management (Chen and Popovich, 2003). Main aim of
relationship marketing is to enable organizations to attain and maintain long-term
healthy relationships with the customers in order to maximize profitability. While
CRM make use of information technology (IT) to effectively implement relationship
marketing strategies (Ryals and Payne, 2001).
The importance of CRM has increased dramatically from the last decade and...
View Full Essay
