Literature Review on Customer Relationship Management

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CUSTOMER RELATION
MANAGEMENT
6/7/2019
Student name

CUSTOMER RELATION MANAGEMENT 1
Literature review
There have been various studies conducted to develop new version of customer relationship
management considering various marketing tools and the marketing managers can use
information technology. Customer relationship management is very broad aspect, among which
customer loyalty is one of the important element. Customer loyalty is the desired outcome of
rapid physical attribute, emotional experience and perceives value of goods and services by the
customers that is offered by the company’s (Goffin, 2017). Considering the loyalty of the
customers towards the company, brand or repetitive use of the products or services can be
identified. However, customer loyalty is not only regarding the repetition of the purchase of
particular brand this would also include having the brand as conversation between family and
friends. This ensures that the customers are fully satisfied, or may be addicted to the use of that
particular product. Therefore, it can be identified that the customer satisfaction and customer
loyalty are two completely different terms and elements of customer relationship management.
At the basis criterion, the customer loyalty is at times including the customers to be depicting the
product, brands, activities, and services of the company (Chan & Khodakarami, 2014).
The company includes various strategies to increase customer loyalty; these can also be said as
customer retention strategies. Some of the strategies identified through the study by various
scholars considering real life basis. Firstly, making customer services as the priority for the
organizations; it has been observed that the customers as per the changing social trends are
considering the services of the company to create image or perceiving value. Moreover, the
services orientation of the company’s has shown the visible difference in the customer loyalty,
especially in industries like retailing (Hudson & Roth, 2016). For instance, the retail industry has

CUSTOMER RELATION MANAGEMENT 2
been identified as the critical change due to integration of digitalization in the industry where the
major leader is Amazon. Amazon being the first mover to bring digitalization to this industry has
increase the value to the customer through extraordinary service provided to the customer along
with best quality goods. Secondly, customer engagement; this include taking customer advice,
feedback, and idea for new product development, improvement of the product and services, and
understanding customer need and expectation in order to keep the satisfaction level of the
customer higher (Kaplan, 2015). For this, the company can even use advanced technology to
reach to maximum possible customers that is through social media platforms. Thus, it can be said
that the feedback from the customers and amend to those feedback could improve the customer
satisfaction and customer loyalty. Through implementing these strategies the company can
actually gain various advantages (Choi, 2015).
For a brand or company, the key benefits that have been identified include increase in revenue.
The revenue of the company are based on sale of the company which would largely depends of
the customer database that is increasing number of new customers and retaining the existing one.
It has been studied that attracting new customer are easy but retaining those customer require
higher efforts by the company. Another key advantage is reduction in marketing cost for the
company; the reason being the company needs to make efforts to increase the customer in
numbers but is the customers are satisfied and are making repetitive purchase then the marketing
efforts by the company could be reduced (Chu & Liu, 2017). Another key benefit would be
increase in brand image; the reason being the customer depicts to be maximum satisfied through
the brand products and since the customer is also encouraging their related people to use the
products, the brand image is eventually increasing. The forecasting is also become easy for the
company when the customer loyalty is enhanced; the reason being the purchase is repetitive so