Introduction

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Customer relationship management (CRM) focuses on keeping customers and building a strong relationship with them, thus enhancing customer loyalty. It is now being increasingly recognized that the greater the satisfaction the customer has with the organization and its products, then the more likely it is that a company will be able to enjoy long-term customer retention and improved profitability. This emphasis involves directing attention at creating a growing understanding and commitment between the customer and the firm, in order to obtain the advantages of a long-term relationship. Relationship marketing concept relies on a move from function-based marketing to cross-function marketing, and a shift from marketing activities which have an emphasis on customer acquisition to those that emphasize customer retention. This approach includes all aspects of all customer-company interactions and is a guideline for all those parts of the organization that deal with customers in a direct or indirect way (Rapp, Reinhold, "CRM in the Airline Industry") (Jenkins, 1999, p. 319).

In concept CRM is simple. It is the process of predicting customer behavior and selecting actions to influence that behavior to benefit the company (Glover, 2000, p. 88).



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Managing Data Mining Technologies in Organizations(c) Techniques and Applications
Managing Data Mining Technologies in Organizations: Techniques and Applications
ISBN: 1591400570
EAN: 2147483647
Year: 2003
Pages: 174

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