The 5 page paper is a comprehensive literature review of customer relationship management. The paper examines what it is, how and when it can be used and factors that impact on effective implementation. The writer makes use of real cases to illustrate points raised. The bibliography cites 16 sources.
overlooked is that of the existing customer base. Customer relationship management (CRM) is a tool that is becoming increasingly popular as it provides a method of maximising this resource
as well as adding value from the customers perception. There are many definition to this type of tool which reflect the
wide ranging uses and interpolations that maybe applied to the term. One of the best definition reads "Customer Relationship Management (CRM) is a business strategy to select and manage customers
to optimize long-term value. CRM requires a customer-centric business philosophy and culture to support effective marketing, sales, and service processes. CRM applications can enable effective Customer Relationship Management, provided that
an enterprise has the right leadership, strategy, and culture." (CRM Guru, 2002). The first aspect is to consider the motivation behind the use
of CRM. In a recent survey the results were interesting. Of the respondents that answered positively to the use of CRM strategy very few indicated that there was a
desire to "increase the bottom line" (West, 2000). In addition to this there were only 27% that saw this as a way of increasing the value for shareholders. In most
cases it was to increase customer satisfaction and overall service, as well as maintaining a completive position rather than increasing it (Grygo, 2001). However, this does not mean we should
under value CRM, as there is a clear role for the systems to be able to increase there bottom line in the long run (Maselli, 2000). Even if this is
through the analytical ability of the software to indicate how to transform unprofitable clients into profitable clients, or identify those that should be released or discouraged (Wileman, 2000, Anton, 1996).