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Introduction
Customer Relationship Management or CRM is an approach that realizes the value of the customer is the core of business and that a company's success depends on effectively managing that relationship (Turban, McLean, Wetherbe, 2002). The object of CRM is to obtain, empower, and retain the customer. CRM software and programs are designed to compile customer data. These programs keep track of who the customers are, what they desire, when they need it, and where they want it.
According to several IT research companies there are several key factors to implementing a long-term successful CRM strategy. Gartner (www.gartner.com) Company summarizes these strategies using eight building blocks:
"Vision is how the customer-centric enterprise wants to look and feel to its customers and prospects. It is the cornerstone to motivating staff, generating customer loyalty and gaining a greater market share.
Strategy takes the direction and financial goals of the business and sets out how the enterprise is going to build customer loyalty. The objectives of the strategy are to target, acquire, develop and retain valuable customers to achieve corporate goals.
Valued customer experience plays a key role in shaping a customer's perception of the enterprise. Good customer experiences drive satisfaction, trust and long-term loyalty.
Organizational collaboration means that individuals, teams and the whole enterprise must become more focused on the need and wants of the customer. It will involve changing organizational structures, incentives and compensation, skills and even the enterprise culture
Processes are reworked to focus on the customer and asking customers which processes matter to them. Successful re-engineering should create processes that not only meet customers' expectations, but also support the customer value proposition, provide competitive differentiation and contribute to the desired customer experience.
Information that flows from customer and around the organization and tight integration between operational and analytical systems. Having the right information at the right time is fundamental to successful CRM strategies, providing customer insight and allowing effective interaction across any channel.
Technology is an essential enabler for any modern CRM strategy.
Metrics measure performance targets and gauge an enterprises success. The enterprise must set measurable objectives and monitor indicators to turn customers into assets." (Radcliffe, 2001)
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