CUSTOMER

RELATIONSHIP
MANAGEMENT
Session II

Evolution
Advances in Technology Intensive
Competition Growing Service Sector
Adoption of TQM

CRM Benefits -

Long term profitability;

Skewed profitability; Marketing benefits;
Service benefits

Evolution.
Contactual Function (McGarry, 1950s)

Berry
(1983)
coined
the
term
Relationship Marketing 5 strategies [core
service, relationship customization, service
augmentation, relationship pricing and
internal marketing]

Evolution. (Schools)
Value Stream Customer value based on

service marketing and quality management

Nordic School Networking between

firms; cross functional

service quality

marketing

and

Relational exchange Stream Buyer

seller relationship models

4

So, CRM is
Marketing on basis of relationships
Viewing customers as business assets
Organizing in terms of processes
Reactive to proactive use of Information
Deploying IT to maximize the Information

value
Balancing the value trade-of
Developing one-to-one marketing
5

CRM Elements
Customer Knowledge
Relationship Strategy
Communication
Individual Value Proposition