Customer relationship management practices as recipe for customer loyalty: A literature review
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Date
2013
Authors
Kangu, Maureen
Wanjau, Kenneth
Kosimbei, George
Arasa, Robert
Journal Title
Journal ISSN
Volume Title
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Abstract
According to empirical evidence the extent of Customer Relationship Management (CRM) benefits to an
organization will vary depending on the nature of the business concerned. They are likely to be more
substantial in the case of any organization that has some or all of the following characteristics: frequent
customer interactions and purchases, high cross-selling potential, perceived risks and involvement, and
profitability. Findings from the empirical studies have grouped CRM benefits under two main paradigms:
operational and strategic benefits. The review of literature provides insights into the operational and strategic
benefits of CRM and how it can be used for strategic advantage of a business. It is advisable that organizations
include in their strategic plans the CRM initiatives that they will use to ensure promotion of customer loyalty. It
is one thing to plan for growth of business using data extrapolation and forecasting but it is equally important
for organizations to plan for ensuring customers are managed professionally. Competition for business has
been in the front of financial performance. Majority of global performance rankings of companies are based on
financial performance. It is good if professionals and business experts can develop an index for CRM with very
clear indicators and measurable processes. The index and its metrics can be used by firms to benchmark their
CRM process and seek ways to improve in the areas which they have shortcomings. This will infuse a culture of customer relationship management, customer loyalty, CRM
Description
Research paper
Keywords
customer relationship management, Customer loyalty, CRM
Citation
Prime Journal of Social Science (PJSS) . Vol. 2(8), pp. 422-426, August 26th, 2013