CRM, before technology, go back to basics

The customer has long been known as a company's important asset. It is the only source of the company's present profit and future growth. However, not all customers are profitable. To keep profitable customers is not an easy process, especially in today's business environment where competition is fierce. Relationship management is a way of managing the relationships between a company and its customers. The importance of long-term relationships for a business has repeatedly pointed out by many researchers during the 1990s, who advised that companies need to consider the lifetime value of their customers and to develop strategies for managing customer satisfaction and loyalty in relationships. Many studies have focused on Customer Relationship Management (CRM) as a strategy to sustain competitive edge. CRM strategy is actually not a new concept. It has been evolving for more than three decade. This paper will describe the evolution of CRM strategy as a background and proceed to present the CRM's position in the world of strategic management. The basis of CRM strategy is to focus on the customer. Therefore, this paper will also elaborate the customer-centric strategy and the role of CRM in customer-centric business. It will describe the importance of customer loyalty in business success, the integration issue, as a way of giving a seamless experience to customers, and the value proposition CRM offers for business success. CRM is not only about business strategy, but it is also related to technology. Therefore, the last section will give a brief discussion about technology as CRM enabler.