Concepts of Crm

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Alexsandro Ingargiola

Professor Sora

Management Information Systems

October 2, 2012

Concepts in Customer Relationship Management:

Types of CRM

Businesses of all shapes, sizes, and popularity are differentiated by inequalities and products, which uniquely identifies each one. For example department stores that sell clothes or cosmetics, restaurants that sell and deliver food, financial institutions similar to banks or brokerages that provide financial services, other services, and etc. The core foundations of initiating, developing, and maintaining the business is not altered by the unique structure of its product or service. Amongst other things each business will require CRM or customer relationship management. Customer Relationship Management is the “core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer-related data and enabled by information technology.”(1)

All businesses misconstrue what is considered to be there most valuable asset. Many of them assume an innovative new product or service. In many cases it may seem so. Ultimately, a business is only as good as the effort it displays and that it represents by customer relationships. A company “who ‘owns’ the customer…represents a firm’s most valuable asset.”(2) If you strip down the term CRM or customer relationship management to the core you will see three legs to the tripod…Customer, Relationship, and Management. One, which cannot stand without the others.

Companies rely on customers to initiate and maintain the business cycle. They bring this to fruition by creating revenue from purchasing a product or service and either returning for more or recommending new customers such as friends and family. Simultaneously, customers rely companies to innovate a product useful for their needs. This brings us to the relationship aspect of the equation. All...