Theories of Customer Relationship Management (CRM)


 
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Theories of Customer Relationship Management (CRM)
Liana, Student (University), Malaysia

What are the main theories within customer relationship management (CRM)? If I said Justice Theory is one CRM theory, is this true? What about Relationship Marketing Theory?
 

 
CRM is not a specific theory
Liana, Student (University), Malaysia
I believe we can say that CRM does not have a specific theory...
It refers to and drwas from any model within the marketing domain, right?
 

 
CRM is not a Model
maneesa, Other, United Kingdom
CRM is not just a model... It can be structured as a marketing policy but still not a specific theory...
 

 
CRM is not a Theory or Model, But it is Reality
Felix C. Poudeu, Management Consultant, Germany
CRM is not a theory or model, it is reality. CRM is a powerful tool for business strategy independent of industry, it is a philosophy to retaining and creating customer satisfaction and loyalty which helps generate sustainable competitive advantage, high ROI, ROMI, CLV, etc.
 

 
Theories Related to CRM
Liana, Student (University), Malaysia
Thank you but I want to figure out what are the theories related to CRM? Because CRM is from the relationship marketing.
 

 
CRM is a Strategy
Mellacheruvu Adi Saasthry , Director, India
CRM is a strategy; it evolves from a lead (i.e. sales and marketing) and cuts across the organization; the better the CRM, the better the economic performance of the business.
There can be several ways and means to strengthen the customer relationship - to name a few:
- Establish trust and reliance with the customer,
- Provide better services,
- Portfolio management.
 

 
Is CRM a Strategy?
Jaap de Jonge, Editor, Netherlands
According to Treacy and Wiersema, there are only 3 value disciplines a company may choose:
1. Operational Excellence
2. Product Leadership
3. Customer Intimacy
According to Porter, there are only 3 generic strategies:
1. Cost Leadership
2. Differentiation
3. Focus (3A. Cost Focus 3B. Differentiation Focus)
Customer Relationship Management can be defined in a number of ways. Some people stress the significance of information technology in CRM, some argue it means a customer-centric organization, some believe CRM is a functional (marketing) strategy, others emphasize that CRM is primarily a business strategy.
 

 
CRM - Strategy
Mellacheruvu Adi Saasthry , Director, India
Understood your point Jaap; my focus was on economic performance of the business. Any business objective, business decision, business strategy taken or made is directly related to what value it adds in the eye of a customer.
Also, Porter's strategies, I feel, forces us to focus on to the customer; keeping all these in view, I had mentioned that CRM is a strategy.
 

 
Few Concepts to Understand Customer Needs and Gaps
Praneet Varma, Manager, Indonesia
May not be straight to your point, but you can try below concepts. They give good understanding on customer expectations and service delivery
1. Gaps theory (SERVQUAL)
2. Service Blueprint
3. Net Promoter Score (NPS).
 

 
Customer Relationship Management is Building Confidence
LEAH LYNDA I. STA ANA, Student (MBA), Philippines
@Jaap de Jonge: CRM is both a business and marketing strategy. In my opinion it is not always about the customer but about the business relationship that you have with the customer, a give and take relationship and being transparent and truthful on what the company can offer to the customer. It is building confidence between the company and your customer.
 

 
 

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