The importance of Customer Relationship Management (CRM)

Introduction:

In the recent years, customer relationship management is getting more important for the development of the companies. It become a significant part of any enterprise’s strategy. First of all, customer is a party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers. They are buyers, the most important part of a company’s operation. Therefore, any company can not obtain the profits without managing the relation with their customers. The definition of customer relationship management is a business strategy of the companies, which depending on the need of customer rather than the the product itself, by communicating with customers to know their need and thinking, then to gain the loyalty of them. (Smith 2009)

This essay will introduce customer relationship management in detail, analysing some reason why it is very important for a company and give serval example of different companies’ operation.

Main body

1.1 The history and development of Customer Relationship Management (CRM)
First of all, customers are lifelines of the companies and playing a pivotal role. “The philosophical roots can be traced in ideas from service management. Throughout the 1990s, these philosophies were supported by numerous research findings on the importance of customer satisfaction, loyalty and retention for the long-term success of any consumer service operation. Now call CRM capabilities.”(Ralf Blomqvist, Johan Dahl, Tomas Haeger (2002). Now, customer relationship management is getting more effective and consummate. Companies try to use different way to advertise their customer service, such as making a short video on their websites, givings some free sample when customers are shopping, doing a phone interview.
1.2 The function of