Strategic use of CRM

MA-Thesis / Master von Vladimir Tosovic

Abstract:

CRM is a „buzzword“ nowadays. This catchphrase has become the revenue driver for the consultants and a nightmare for the people responsible for its implementation. Although this topic receives broad media attention, the presented strategic CRM issues are very fuzzy. Attracted by the enormous revenue potential, there is a vast of „CRM experts” giving tips on the CRM strategies, which results in a very unclear and even contrary coverage of this subject. The companies „feel” that they need CRM, but as soon as they try to find out what that is and how could it be beneficial for their business, they get very diverse and vague answers. This work will seek to provide a consistent picture of CRM strategy and the underlying technology The focus of this paper is to offer a critical analysis of different strategic CRM concepts and integrate them into one CRM framework. As CRM is made possible by the technology developments, the understanding of opportunities provided by the underlying technology is necessary. Therefore the center of attention will be in the explanation of the interaction between the customer oriented strategy and the enabling technology.

In order to uncover the essence of CRM, this paper will provide a look at the roots of CRM. It will explain the theoretical background of CRM and the new market challenges, which have been pushing the development of the CRM concept. Also the relationship between the customer satisfaction and the customer profitability must be evaluated, as satisfied customers is one of the main intentions of CRM.

I want also to approach some practical issues of CRM. This study will seek to outline the findings about the bottom line impact of CRM and the issues on the accessibility of the customer information.

Finally, with the last chapter I will try to close with useful recommendations regarding CRM strategy development and provide a conclusion on the results achieved in this work.

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