CRM: What Forms a Strong Customer Relationship?

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

		Comments Sort by date Sort by rating Rating
		3 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 custo... Sign up

		4 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 t... Sign up

		2 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... Sign up

		6 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 incre... Sign up

		4 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 expectation... Sign up

		3 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 ... Sign up

		2 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... Sign up

		2 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 w... Sign up

		2 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... Sign up

		3 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 s... Sign up

		4 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 k... Sign up

		3 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 c... Sign up

		1 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... Sign up

		2 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 mo... Sign up

		2 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 cus... Sign up

		2 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 exp... Sign up