CRM: What Forms a Strong Customer Relationship?

Customer Relationship Management
Knowledge Center

Best Practices
Anneke Zwart
Student (University), Netherlands

CRM: What Forms a Strong Customer Relationship?

Of course a vital relationship between customer and company is critical for CRM to be efficient. But what forms a strong relationship? The answer on this question is not always clear. Nguyen and Mutum mention four essential factors important in pertaining a strong customer relationship:
1.Trust and commitment: Trust means feeling secure by believing in positive and beneficial intentions of parties involved. Therefore, trust is positively related to satisfaction and loyalty. Besides, trust is an important component of commitment which also increases satisfaction and loyalty.
2. Satisfaction: there exist a positive relationship between satisfaction and loyalty; satisfied clients are more likely to maintain a good relation. Furthermore, since a relationship’s duration is dependent on a clients subjective evaluation of this relationship, satisfaction increases the duration of a relationship as well.
3. Symmetry and independence: symmetry means to what extend the members of the relationship are equal. The more asymmetric a relation, the more likely conflicts will develop and thus the less stable the relationship. Furthermore, the more dependent one party is on the other party, the less symmetric and thus the less stable a relationship.
4. Fairness: research has shown that fairness in a relationship improves the quality. It is essential to develop projects and methods which are considered to be fair by the members of the relationship, in order to maintain a good relation.
Source: Nguyen, B. And D. S. Mutum. (1995). A Review of Customer Relationship Management: Successes, Advances, Pitfalls and Futures. Oxford Brookes Business School, Oxford Brookes University, Oxford, UK, and Warwick Business School, University of Warwick, Coventry, UK

  Mohammed Rahim Ullah
Financial Consultant, Bangladesh
 

One more Factor to Create A Strong Customer Relationship

Have a CRM Practice for customer equity building / relationship banking. If you want to ensure customer equity, you need...

  Richard Ahumibe
Management Consultant, United Kingdom
 

Factors for a Strong Customer Relationship

Keeping our promises to our customers (nothing binds like a promise kept) and giving extra support to our customers when...

  Orane Farquharson
Project Manager, Canada
 

When will Customer Relationship be Strong? If there are Mutual Benefits and 2-way Communication

From a sociological perspective, the ability to create a mutually beneficial scenario. Customers can witness this on a c...

  Praneet Varma
Manager, Indonesia
 

How to Form a Strong Customer Relationship: Voice of Customer and HR

To add, ask customers what they want and how can we make things better. The quality must keep increasing constantly and...

  Marcel Wiedenbrugge
Consultant, Netherlands
 

Building a Strong Customer Relationship: The Role of Consistency

As part of 2. Satisfaction, it's important to have consistency and we should be managing expectations in a consistent wa...

  Mohamad Nasir Mahmood
Director, Malaysia
 

Balancing Internal and External Customers

There are two kinds of customers: - external customers - those who pay and receive the products or services rendered, t...

  Naomi Elisabeth
Indonesia
 

When will a Customer Relationship be Strong? Customer-Orientation and Sincerity

When we focus on the customer and we put ourselves in their shoes, we will be able to understand and consider what they ...

  PK Lim CMC, PMC
Management Consultant, Singapore
 

CRM: what Forms a Strong Customer Relationship?

Having an actual relationship is # 1. Next is you are always there to listen and provide solutions when the customer nee...

  Musyoki Muli
Director, Kenya
 

How to Build a Strong Relationship: Communication to Customers

@Orane Farquharson : I agree that communication that updates the customer on upswings and downswings makes them feel val...

  remo ram mero
Financial Consultant, Saudi Arabia
 

Creating Strong Customer Relations by Scheduling Appointments

@Lim Poh Khai : I agree on the practical side, creating and scheduling appointments with customers should be a central a...

  Stephan Weber
Business Consultant, United Kingdom
 

What Forms a Strong Customer Relationship: Deliver what your Customers Value

Create the right value: identify and deliver what is important to your customer. From experience I know that sometimes o...

  P. ter Horst
Strategy Consultant, Chile
 

Providing Status to the Customer

The four principles mentioned by Anneke are valid, but none of them seems to be as relevant as the customer's status gai...

  Jaap de Jonge
Editor, Netherlands
 

The Role of Status in Forming a Strong Customer Relationship

@P. ter Horst: thanks for your thought provoking reaction. I believe you are right to say that it is the subjective...

  Marcel Wiedenbrugge
Consultant, Netherlands
 

What Forms a Strong Customer Relationship is Different in B2B and B2C

I like to make a distinction between B2C and B2B: - In B2C, status, as Ter Horst mentions can be more dominant. - In B...

  Dr. Sapna Dadwal
Professor, India
 

Achieving a Strong Customer Realationship also Requires Sharing the Mind of the Customer

Apart from the above points I think sharing the mind of the customer and creating the value each customer wants are also...

  Mary Grace Mabunga
Student (MBA), United Kingdom
 

Associations and Experience are Two Main Themes of CRM as a strategy

@P. Ter Horst: Based on my research, company's are associated with different expectations. These expectations provide va...

 

More on Customer Relationship Management:
Summary
Forum
🔥Relationship Between Employee Retention and Customer Relationship Management
Rethinking Call Centers
CRM in University Set Up
CRM in a Non-profit Context
The CRM-paradox by Nguyen
CRM in a Monopoly Situation
CRM in Military Organizations?
Healthcare CRM Models?
6 Markets Model (Payne, 1995)
CRM Practices in FMCG Sector
Managing Customer Complaints
Relationship with Company or with Employees?
Stages of Customer Service Transformation
Start CRM with Fixing Fragmented Customer Service Processes
Advanced Customer-Oriented Strategy: Customer Advocacy
An Extreme CRM Case: Front Office
Increasing Student Retention using Higher Education CRM
Six Relationship Management Interaction Processes (Geersbro and Ritter) for International Relations
Customer Relationship Management Metaphor
More CRM Strengths / Benefits
Tool to assess CRM maturity?
Customer Relationship Management History
CRM in Government
Best Practices
Framework for Monitoring Customer Service
👀CRM: What Forms a Strong Customer Relationship?
What is the Impact of CRM on Organizational Performance?
Theories of Customer Relationship Management (CRM)
Why Customer Relationship Management? What Makes CRM Viable?
Customer Intimacy > WHY?
Social Customer Relationship Management | Social CRM
Business Relations in Corporate America
Customer Relationship Management as a Strategic Development Philosophy
Special Interest Group

Do you have a keen interest in Customer Relationship Management? Become our SIG Leader

Customer Relationship Management
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2022 12manage - The Executive Fast Track. V15.8 - Last updated: 6-7-2022. All names ™ of their owners.