Running Header: CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION3

1.1 Research Questions (RQ)3

CHAPTER 2: LITERATURE REVIEW4

2.1 Customers in CRM4

2.3 Definition of CRM5

CHAPTER 3: DATA ANALYSIS7

3.1 RQ 17

3.2 RQ 28

3.3 RQ 311

3.4 RQ 413

CHAPTER 4: CONCLUSION15

REFERENCES16

Chapter 1: Introduction

With constantly changing and improving technology, a business cannot rely solely on offering a service or a product to its customers. Furthermore, with globalization, and increasing competition leading to more choices for the customers, it is very difficult to catch the attention of new customers or hold on to the existing ones. In order for a business to sustain itself in today's ever-changing marketplace, it is imperative to build a long-term relationship with its customers. In his seminal article on CRM, Russell Winer theorized that increasing the customer retention every year even by just a small percentage can result in an exponential increase in revenue for an organization. Researchers O'Connor and Murphy have contended that in order to improve relations with customers, information systems must be used in today's market. This is particularly crucial with the decrease in computer hardware costs and the increasing ease with which information systems can be accessed. This is where Customer Relationship Management (CRM) comes in.

1.1 Research Questions (RQ)

RQ1: What is Customer Relationship Management?

RQ2: What are components of CRM?

RQ3: What is the Frame work for CRM and how it works?

RQ4: What is Customer Relationship Marketing?

Chapter 2: Literature Review

2.1 Customers in CRM

To answer the question, “What is customer relationship management?” we need to first define the customer. Questions such as “What is a customer? Who is a customer? What are customer relationships?” need to be addressed before getting into the details of Customer Relationship Management (CRM) technologies, processes, and issues. Many different answers exist to these questions, and these answers vary according the disciplines and perspectives producing the answers.

In Relationship Marketing discipline, not only external customers but also internal customers are included in the customer definition. Internal customers refer to employees and suppliers. (Gamble 1999). Some researchers have argued that satisfying the needs of internal customers improves the capability for satisfying the needs of external customers. Greenberg (2002) also emphasized the importance of the internal customers. He argued that employees are also customers in terms of the service provided and the fee to be charged.

Greenberg (2002) also demarcated customers from clients. Customers are distinguished from clients in terms of the context of business-to-business (B2B) or of business-to-consumer (B2C). That is, in B2B settings, the customers are usually referred to as 'clients,' while in the B2C settings, the consumers are called as 'customers.' However, he comes to the conclusion that, even without distinguishing client and customer, there are four different types of customers. The four are (1) paying clients, (2) employees, (3) supplier/vendor, and (4) partner.

With the rising importance of partnering and channel management, research studies on the Partner Relationship Management and Channel Relationship Management have picked up steam. For the purposes of this chapter, however, the definition of customer is limited to buyers of the products and ...