Literature review: Customer relationship management (CRM)
Customer relationship management has been defined in many ways. Metagroep defines CRM as ‘the automation of horizontally integrated business processes involving front office customer contact points (marketing, sales, service and support) via multiple, interconnected delivery channels’. (Ed Peelen, p.3) According to the definition the usage of communication tools like internet and telephone enables to connect the customers in a much effective way. Another definition suggests that CRM is ‘a process that addresses all aspects of identifying customers, creating customer knowledge, building customer relationship, and shaping their perceptions of the organization and its products’.(Ed Peelen, p.4) This definition puts the process of getting to know the customers. One of the best definitions of CRM was given by Regis McKenna.
[...] There are eight building blocks for successful customer relationship management, which are CRM vision, CRM strategy, Valued customer experience, Organizational collaboration, CRM processes, CRM information, CRM technology and CRM metrics (Strauss J P.365). These eight CRM building blocks are used for e-marketing, and could help companies doing business more effectively and efficiently. Research on relationship marketing in the banking industry was common by the early 1990s (Keltner, 1995), and it was first introduced into financial services industry by Berry (1983) as a tool for repositioning the then current marketing orientations (Gronroos, 2000) The relationship marketing for banks is to focus on various elements of relationship marketing. [...]
[...] the customer and the company. CRM consists of sophisticated software and analytical tools that integrate customer information from all of those sources which analyses it in depth, and apply the results to build stronger customer relationships. Philip, W Veronica, S John, A Gray, 2005) CRM analysts develop data warehouses and use the sophisticated data mining techniques to unearth the riches hidden in customer data. Companies could assess the value of individual customers and target different group of customers. A data warehouse could store all of the company’s customer information by electronic technology. [...]