Importance of Understanding Customer Relationship Management

CUSTOMER RELATIONSHIP MANAGEMENT

Introduction
Customer relationship can be defined as the combination of methods, people, and technology
companies' use identifies their potential prospects’ needs. In the statement of Khodakarami and
Chan (2014), it is more of an integrated technique used for organising relationships by
emphasising explicitly on the concept of customer relationship development and retention
considerably. The term customer relationship has relatively evolved with the advancements in
information technology and business processes transformation to handle customer-centric
queries. Organisations that productively apply effective customer relationship management
would definitely obtain the rewards with greater figures of customer loyalties and long-run
profitability.
However Lemon and Verhoef (2016) argued that effective application is indefinable to numerous
organisations, frequently since they fail to recognize the fact that CRM requires cross-functional,
company-wide and customer-centric business methods. The present essay aims to select the topic
Understanding Relationships and the evaluation would be made centred on the subject matter.
The importance of understanding customer relationship of companies would be analysed and its
methods of application as well. Based on the research, facts and arguments related to the chosen
topic an authentic conclusion would be derived.
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Customer Relationship Management (CRM)
As per records of recent researches connecting to customers’ handling, the outcome claims that
consumers never agitate as a result of sudden fluctuations in the price ranges, however, they
whip after getting ineffective and negative customer care service lines. It is necessary for
organisations to ensure that their clients receive adequate customer service and satisfaction they
are seeking to lower their probabilities of churning. Businesses readily require tracking and
gauge the contentment ration of its customers and place in situate latest measures for growing
customer service excellence. Hence, internal resources shall be eager to go beyond customers’
expectations and satisfy them with all of its available opportunities to create a better impact on
customers’ service experiences.
Understanding better customer relationships often serve as a differentiation point. As per Lemon
and Verhoef (2016), in the recent marketplace where the degree of competition is at its peak, the
relationship businesses having with their most potent and loyal clients would enact as its key
differentiator to compete against rivals. Businesses that prosper in these uncertain surroundings
are the ones making its customer relationship as its chief business policy. In this context, it may
also be noted that a properly designed and efficiently structured customer relationship
management strategy significantly contribute towards gaining the competitive advantage in the
industry for the firm. For example, the Coffee Makers operating in the area of its competitors as
well offering a substitute product, customers prefer opting the service of the product of that
brand that manages to offer enormous customer experience and includes vicinity that guarantee
that contentment is high. Customer and company relationships shall work as a full circle since
this positive relationship would not only support business to track its current customer’s status
but also encourage in bringing new ones.
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