Sequential outputs of a proper customer relationship management (CRM) system with value approach in CRM world

Many companies turned to implement a CRM (customer relationship management) system as a distinguishing advantage between company and its competitors referring to as competitive advantage through creation and maintenance of long term profitable relationships to serving the customers better with high quality in product/service and high speed and predicting their future behavior. CRM contributes organization to identify, build up, retain, and develop a long term relationship with profitable customers in order to create and deliver superior value, achieve customer’s satisfaction and loyalty and ultimately to increase profitability. This is a review article aimed to pull out and combine summarized related information about sequential outputs of a CRM system properly conducted such as customer acquisition (CA), customer retention (CR), customer loyalty (CL), and profitability as well value concept in the CRM world. We illuminated CA, CR, CL and profitability as sequentially nonfinancial and financial outputs of CRM properly conducted. Findings show if CRM properly and successfully implemented, provides a win-win situation in favor of both customer-company in form of sequential outputs. In fact company proposes values tailored to or beyond customer’s expectations with the aid of CRM system that results in customer satisfaction and over time turned into loyalty that helps organization by keeping existed customers and gaining new customers at a lower cost and higher effectiveness in return the customer compensates the company’s efforts in a form of more share of wallet provision and repurchasing in total profitability

Keywords:

Proper CRM System , Sequential outputs , Value Approach