LITERATURE REVIEW

CUSTOMER RELATIONSHIP MANAGEMENT

Hyung-Sukim, Young-Gul Kim(1) in his article “ACRM performance Measurement

framework its development process and application” discussed CRM was developed

through rigorous and stepwise development process collaborated with a number of

firms in a variety of industries. The study indicated measuring CRM performance has

become an important topic for both academics and practitioners. The company must

first understand what factors are important for performance CRM strategy and what

interrelationships between those factors are the core relational mechanism in the

measuring CRM performance measurement framework.

Yuping(2) (2007) analyzed the loyalty program is an important form of CRM strategy.

CRM is a important tool and aim to increase customer loyalty by rewarding customers

for doing business with the firm.

Stephan C. Henneberg(3) (2005) in his work study “An Exploratory Analysis of CRM

implementation models” throws a light on Customer Relationship Management

(CRM) as a concept of both customer – orientation and market-orientation.

Comparing need CRM follow-up projects that supplement the initially created CRM

capabilities with complementary elements.

Lyle R. Wetsch(4) (2005) “Trust, satisfaction and loyalty in customer relationship

management: An application of justice theory” in his article attempt to increase

customer loyalty a mid increasingly competitive business even environments, CRM

implementation may on customer loyalty.

Ch. J.S. Prasad and A.R. Aryasri(5) (2008) conducted a survey on “A study of

customer relationship Marketing practices in organized retailing in Food and Grocery

Sector in India : An empirical analysis” examined that posed a great challenge to the

organized retailers for customer in this fierce competition. The authors described

Five Relationship Marketing dimensions trust, commitment, communication

relationship, customer satisfaction, have a direct relationship with customer loyalty.

Katherime N lemon, Tiffany Barnett white, and Russel S. Winer(6) (2002) in their

article highlighted understanding and managing the future-focused consideration is

critical successful dynamic customer relationship management. Marketers now need

to understand customer in a dynamic, changing environment and engage in dynamic

Customer Relationship Management under standing that consumers take into account

aspects of the past, present and future, including future expectations. If firms fail to

take into account this ideas that consumer are involved planner and forecasters, as

well as evaluators of their services.

Particia B. Seybold(7) (2003) analysis CRM is a better strategy which brings more

result for customer and company. CRM is a fight initiative that changing

organizational culture and implementing the right information technology. CRM

initiatives recipe for a successful CRM implementation starts with understanding what

your customers want and needs and get your dealers. The secret to success in CRM is

to focus on the quality of the customer experience you deliver across all of the

interaction touch points and distribution channels the customer chooses.

William Boulding, Richard Staeline, Michael Ehrect and Wesley J. Johnston(8)

(2005) Estimated a CRM in overall context of Marketing thought firm maximizes

profits and consumer maximize utility. Today CRM is a new concept to analyse the

firm performance and customer value. CRM is a truly a really big new idea and

outcome of the continuing evolution and integration of marketing ideas and newly

available data, technologies, and organizational firms. The paper notes the main

demonstrate the creation of firm value. Firms can learn things about customers that

enable it to take a big slice of the created values.

Adrian Payne and Pennie Frow(9) (2005) the authors explore definitional aspects of

CRM and relationship marketing in to a single, process-based framework should

provide deeper and strong thing to achieving success with CRM strategy. The studies

was discussed CRM at a strategic level by identifying the key cross-functional process

involved in the development of CRM strategy. The main aims of this article are

analysis about the identify alternative perspectives, strategic approach CRM with in a

holistic organizational context, develop and deliver in effective CRM strategy. So by

this strategies models service profit chains has been important and improving

shareholder results.

Satish jayachandran Subhash, Peter Kaufman & Pushkala Raman(10) (2005) conducted

a survey on general manager in a Strategic Business Unit (SBU) 1105 (SBU) of top

firms in the United States. They conducted their study in three steps. First,

Telephone Calls, it provided key information names. Second Questionnaire post

through, e-mail addresses in 542 organizations. Interviews were conducted with the

563 contact. A total of 172 key informants responded to the mail and web survey for

a response rate of 15.56% and used data for 21 respondents only for measurement

analysis. The survey revealed that: CRM technology indicated that the user groups

played important role in planning for the implementation of CRM technology. CRM

technology communicates much better with their customers and help customers

manage their own needs, helped capture data more effectively when there were large

members of customers.

According to Darshan Desai, Subrat Sashu and Piyush Kumar Sinha (11) (2007) CRM

is a strategic initiative and surprisingly which motives an organizations ability to

continuously improve, innovate and reconfigure resources to match the evolving

environmental needs. CRM performance can measure two items customer

satisfaction and customer retention. In this study observed the right strategy to

measure the CRM technology to balance the up and down approaches is to take

decisions about the CRM process.

Peter C. Verhoef(12) (2003) has examined the customer relationship perceptions are

considered evaluations of relationship strength and a suppliers, offerings, and

customer share development is the change in customers shoe between two periods.

The study opines that the customer retention and customer share are important

practices in CRM system. Firms use relationship with customers to identified needs,

want.

Yong Cao & Thormar S. Gruca(13) (2005) in his article “Reducing Adverse Selection

through Customer Relationship Management” advocated the successful Customer

Relationship Management (CRM) begins with acquisition of the right customer.

CRM technology can fulfill its promise to improve firm performance. In this article,

authors develop a model framework to identify the customers who are more likely to

respond to an offer and to become more profitable customer.

Choi Sang long, Raha Khalafinezhad, Wan Khairuzzaman Wanishmail and Sitizaleha

Abad Rasid(14) (2013) in their study on “Impact of CRM factors on Customer

satisfaction and Loyalty” explain the CRM is the most efficient approach in

maintaining and creating relationships with customers. The authors examines CRM is

not only pure business but also ideate strong personal bonding with the people. The

research findings suggest that the organization to identify the actual needs of

customers and to serve them in a better way. Implementing CRM in a organization is

more fruitful is the business.

Grahame Dowling(15) (2002)in his article entitled a Customer Relationship

Management: in B2C Markets, often less is more” which investigated CRM systems

such as call centers, websites, customer services and support terms and loyalty

programs are used to manage the relationship with customer. In this article, we

validate the CRM by seems to be a logical extension of the current customer-focus

logic of selecting. The study finds often a direct competitor has a CRM program-

hence, a similar scheme is needed as a counter measure.

Kuan C Chen(16) (2008) discussed CRM (Customer Relationship Management) is a

systematic way business approach collecting information and ongoing dialogues to

build long term lasting and mutually beneficial Customer Relationship. He examined

the CRM integrates data, technology, analysis and marketing and communications

process across all customer touch-points. He concluded that CRM can be effective

business strategy tool when used appropriately, especially now in our customer center

business.

Peter C. Verhoef and Fred langerak(17) (2002) study focused on 11 of these

misconception about CRM and customer behaviour to help manager make well-

considered CRM-related decisions and rouse the success rate of CRM projects.

Misconception

(1) CRM Software alone will enhance business performance.

(2) Firms should only focus on customer relationship development.

(3) Customer acquisition and CRM are too unrelated activities.

(4) Customers want to have relationships with companies.

(5) Long-lasting relationship with customer are always more profitable.

(6) Satisfied customers are always more loyal.

(7) Firms should focus their marketing efforts on their most profitable customers.

(8) The customer pyramid is a good segmentation scheme.

(9) Loyalty programmes always improve customer loyalty

(10) The lifetime value of individual customer is predictable

(11) The internet is the most suitable tool to enhance customer loyalty.

The authors developed CRM is a managerial process that focuses on a development

and maintenance of relationships with individual customers in such a way that value

is created for both the customer and the firms using databases. Statistical decision-

support tools and interactive communication techniques.

Michael Levy(18) (2008) Barton A Weitz & Ajay Pandit in their book “Retailing

Management” discussed Customer Relationship Management is a business philosophy

and set of strategies, programs and systems that focuses on identifying and building

loyalty with a retailers most valued customers. They advocated that CRM Programs

are designed to increase the share of wallet from the from the retailer’s best customer.

Tapan K Panda(19) (2007) in their text book a Marketing Management Texts cases

have stated that CRM is a process involves all the activities in building deeper under

standing of customer interactions, building relationships and designing offerings to

suit individual customer. He stated that Customer Relationship Management (CRM)

program integrates customers with the firms value delivery process for better

customer retention strategy and higher customer loyalty creation.

Joan L. Anderson, Laura P. Joily, Anne Fairherst(20) (2007) has highlighted the CRM

will identified and developed a cost-effective methods for reducing adverse customer

selection through CRM. An emerging strategy was using the result of CRM to

identify and implement special customer services, increasing customer acquisition and

retention was also linked to increased customer loyalty.

Darrell K. Rigby & Dianne Leding Ham (21) (2004) in their article “best practice CRM

Done Right” Identified a CRM program involves complicated business and

technology issues and requires significant investments of time & Money. CRM

system is the creation of a real-time enterprise. Understanding that highly accurate

and timely data are not required everywhere in their business. Authors estimated

CRM is becoming a basic building block of corporate success and becoming to

resemble any other valuable management tool, and the keys to successful

implementation are also becoming families strong executive and business-unit

leadership careful strategic planning, clear performance measures, and a coordinated

program that combines organization of new technology.

REFERENCES:

1. Hyung-Su-Kim, Young-Gul Kim “A CRM performance measurement Framework: its

development process and Application” journal of Industrial Marketing Management,

Vol.38, 2009, pp.477-489.

2. Yuping Liu “The Long-term impact of Loyalty Programs on Customer purchase

behaviour and Loyalty” Journal of Marketing, Vol.71, Oct.2007, pp.19-35.

3. Stephan C. Henneberg “An Exploratory Analysis of CRM Implementation Models”

Journal of Relationship Marketing, Vol.4, No.3/4, 2005, pp.85-104.

4. Lyle. Wetsch “Trust, Satisfaction and loyalty in Customer Relationship Management:

An Application of Justice Theory”, Journal of Relationship Management, Vol.4,

No.3/4, 2005, pp.29-42.

5. Ch. J.S. Prasad and A.R. Aryasri “A Study of Customer Relationship Marketing

practices in organized Retailing in Food and Grocery Sector in India: An empirical

analysis” Journal of Business Perspective, Vol.2, No.4, 2008, pp.33-43.

6. Katherine N. Lemon, Tiffany Barnett Whites and Russell S. Winer “Dynamic

Customer Relationship Mangement: Incorporating Future Considerations into the

Services Retention Decision” Journal of Marketing, Vo.66, pp.2002, pp.1-14.

7. Patricla B. Seybold “Crafting Customer-Managed Relationships Business Lines

Journal Management, Praxis, Vol.4, Issue 1, 2003, pp.28-33.

8. William Boulding, Richard Staelin, Michael Ehret, Swesley J. Johnston, American

Marketing Association, Journal of Marketing, Vol.69, 2005, pp.155-165.

9. Adrian Paynes Pennie Frow “A Strategic Framework for Customer Relationship

Management”, American Marketing Association, Journal of Marketing, Vol.69, 2005,

pp.167-176.

10. Satish Jayachandran, Subhash Sharma, Peter Kaufman, Pushkala Raman, “The Role

of Relational Information Processes and Technology use in Customer Relationship

Management” American Marketing Association, Journal of Marketing, Vol.69, 2005,

pp.177-192.

11. Darshan Desai, Subrat Sahu and Piyush Kumar Sinha, “Role of Dynamic Capability

and Information Technology in Customer Relationship Management: A Study of

Indian Companies”, Valkalpa, Vol.32, No.4, 2007, pp.45-61.

12. Peter C. Verhoef, “Understanding the effect of Customer Relationship Management

Efforts on Customer Retention and Customer Share Development” Journal of

Marketing, Vol.67, 2003, pp.30-45.

13. Yong Cao & Thomas S. Gruca, “Reducing Adverse Selection through Customer

Relationship Management” Journal of Marketing, Vol.69, 2005, pp.219-229.

14. Choi Sang Long, Rahakhalafinezhad, Wankhairuzzaman Wanismails Siti, Saleha Abd

Rasid, “Impact of Customer Relationship Management (CRM) factors on Customer

Satisfaction and Loyalty” Journal of Asian Social Science, Vol.9, No.10, 2013,

pp.247-253.

15. Grahame Dowling “Customer Relationship Management: In B2C Markets often Less

in more” California Management Review, Vol.44, No.3, 2002, pp.87-104.

16. Kuan C Chen “The Dynamic Structure of Customer Relationship Management with

Implications for Business Implementation” Journal of Business & Economic

Research, Vol.6, No.6, 2008, pp.129-138.

17. Pter C verhof and Fred Langerak “Eleven Misconceptions about Customer

Relationship Management”, Business Strategy Review, Vol.13, Issue 4, 2002, pp.70-

76.

18. Michael Levy, Barton A Weitz and Ajay Pandit, Retailing Management” Tata

McGraw Hill, 6th Edition, 2008, p.364.

19. Tapan K Panda “ Marketing Management Text and Cases Indian Context”, EXCEL

Books, New Delhi, 2007, pp.34-38.

20. Joan L. Anderson, Laura D. Jolly, Ann E, Fair Hurst, “Customer Relationship

Management in Retailing: A content analysis of retail trade journals” Journal of

retailing and Consumer Services”, vol.14, 2007, pp.394-399.

21. Darrell K. Rig by & Dianne Ledingham, “Customer Relationship Management

(CRM) done Right” Harvard Business Reviewed, 2004, p.1-13.