Customer Relationship Management

Abstract

The new challenge in millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king – (ie) the customer. Decades ago customers did not have the need or want for a particular product thus the producers did not keep the customers in mind has there was no alternative for the source of supply or suppliers. Today there is a radical transformation. The Economic liberalization, increasing competition, high consumer choice, demanding customer, more emphasis on quality and value of purchase is the characterization for changing business environment. Today’s producer shift from traditional marketing to modern marketing is all because of these changes. Modern marketing calls for developing a product, pricing it, promoting it and making it accessible to target customer. The present organization wants to build trust, a binding force and value added relationship with the customers. The process of developing a cooperative and collaborative relationship between the buyer and seller is called customer relationship management CRM. To know the individual customer intimately, the company has a customized product ready for him even before he asks for it this is the significant components of CRM. Combination of people processes and technology that seeks to understand a company's customers is Customer Relationship Management. Managing relationships by focusing on customer retention and relationship development is their way of approach. Advances in information technology and organizational changes in customer-centric processes is from which CRM is evolved. Rewards in customer loyalty and long run profitability will be reaped when the companies has successfully implemented CRM. Most companies do not understand that CRM requires company-wide, cross-functional, customer-focused business process re-engineering, where successful implementation is elusive to many companies. Viewing CRM as a technology-only solution is likely to fail , though a large portion of CRM is technology. For a successful management of CRM implementation it requires an integrated and balanced approach to technology, process, and people. CRM is the main reason for a good running of a company for a successful growth and development of the management.