Customer Relationship Management
It is important to have proper understanding of maintaining the relations. In the workplace the relations can be maintained with the management and employees or with employees and customers. So, Customer relationship is considered as the term which is related to the practices, strategies and also with the technologies that manage and evaluate the customer interaction. The goal is to improve the customer relationship so that it can be easy to accomplish goals and objectives. It has also been examined that relations are composed of various interactive episodes between parties (TechTarget, 2018).
Customer relationship management is related with the principles, practices and guidelines that are considered by the company so that it can be easy to interact with the customers. From the company point of view, the relation with the customers can be maintained if there is proper interaction in terms of sales and service related process. Also CRM helps to enhance the overall experience of the customers towards the services or the products offered by the company. It has been seen that to achieve competitive advantage the company should focus on maintaining customer relationship so that it can be easy to accomplish goals and objectives (Hill and Brierley, 2017).
It has been investigated that there are various models or theories which focuses on customer relationship management. It is important for the management to emphasize on customer relationship management so that the activities can relation can be maintained of the company and employees.
One of the relationship change model is related to Dwyer, Schurr & Oh’s. In this the first stage is related with awareness in which when each parties give attention to the other. In the step related to exploration it has been examined that period of investigation and testing can take place during which the parties can analyze the capabilities of each other and also the performance level can be considered. In the stage related to exploration can take place in context to attraction, communication and bargaining and also the norms are developed in context to the expectations (Dane and Brummel, 2014). The next stage in this model emphasizes on the expansion stage in which the interdependence enhanced and also transactions take place. In this stage trust is created in the people. The next step is related with commitment in which the adaption enhanced and also the roles are cleared mutually. The last step in this model is related with dissolution in which it has been seen that relations are enhanced between the people (Kumar and Reinartz, 2018).
Relationship Change Model
By focusing on understanding relationships then it has been analyzed that there are major relationship attributes like trust and commitment which should be there so that it can be easy to manage the relations. To main relation with the customers it is important to create trust and commitment so that customers can feel good and satisfied. Without trust and commitment it is not possible for the maintain customer relations. Also the employees should have trust on their managers so that relations can be maintained. If the customers are having trust towards the company services or the products then impact can be seen on the entire sales of the company. Trust emerges when the parties focus on sharing the experiences and also focus on the basic motives. The parties also learn about each other and also the risk can be reduced with the help of maintaining the trust (Alessandri, Borgogni and Latham, 2017). So, it can be stated that trust can be known as the glue that holds the relation together across time and various episodes.
For example : If the customer know the quality of the product then he or she will pay the high price of the product but if trust is not there towards the products or the services then it can be difficult to purchase the product. One customer who goes to purchase the product of Nestle chocolate but the price of the product increases so in this case the customer have two choice either to switch to another product or to buy the product at high price. Therefore, trust can help to attract the customers towards the products if the prices are increased. So, in the case the customers have trust towards the products so they will purchase the product at high price.
It is also important for both the parties to have trust on each other. There are various types of trust like benevolence in which the belief of one party acts in relation to the interest of others. If the employees have interest towards the company then only they will offer effective services to the customers that can lead to customer satisfaction or enhancement in the customer relation management. Next type of trust is related with honesty. It is the belief that is one of the other person words which he or she spoke (Kaura, Durga Prasad and Sharma, 2015).
It is important for the employees to give accurate information to the customers so that customer can be satisfied and their experience with the services can be good. The employees should also be honest towards their work so that they can deliver the best towards the activities of the company. If employees are not honest or satisfied then it can be difficult for them to enhance customer satisfaction. The next type of trust is related with competence in which it has been observed that the belief of other party has the importance in the expertise to perform the overall activities. It is important for the employees to have effective skills so that the activities can be conducted effectively.
Importance of Trust
So, it has been examined that to understand the relations the trust also changes over time. The calculus based trust is seen on the initial stage of the relation and it is calculative. Also the knowledge based trust focuses on the parties’ history and knowledge related to one another. Identification based trust also take place when there is mutual understanding that can be stated as the substitute in the interpersonal.
Commitment is also one of the factors that can be related to understand relations. If there is no commitment then it can be difficult to understand the relationships. Commitment is concerned with helping the ongoing relationship with each other and it helps to maintain the efforts. So, in this context it has been seen that employees and top management should have commitment with each other so that employees can feel motivated and happy in completing the activities. When employees will be happy the direct impact can be seen on the level of commitment with the customers. Commitment level is important for the customers as it helps in enhancing faith towards the activities of the company. Commitment motivates both the parties to cooperate with each other so that it can be easy to preserve the relation investments. In relation to customers it has been examined that evidence of commitment is related with investment that is made by the one party in the other party (Nyadzayo and Khajehzadeh, 2016). So, it has been seen that when company fulfill their commitments then it can enhance the customers satisfaction will directly improve the relation between the company and the employees.
There are also various attributes related to high quality relationship. If these attributes are considered than it can be easy to understand the relations. It is important that relation between the two people should be satisfying and also there should be mutual goals. If mutual goals are then it can help to attain success and long term relation with each other. Also there should be cooperative norms that can help to understand the relation with each other (Khodakarami and Chan, 2014).
Companies focus on maintaining the relations with the customers because it can help them to attain success and growth in the competitive market. It will also help to minimize the marketing cost and can help to maintain longer customer tenure .
There are various organizational advantages that can help to focus on managing the overall customer retention. It will also help to minimize the marketing costs like few are spent so that churned customers can be replaced. Also it provides the better customer insight that will help to understand the relation with the suppliers. It creates the proper understanding of the needs of the customers. The supplier also focuses on the needs of the customers. There are many businesses to customers who can give value to the relation for various reasons. Like in recognition it helps the customers to feel more valued and also helps to empower the relations with the suppliers. The satisfaction profit chain is related with
Therefore, by analyzing the paper it can be concluded that it is important to focus on understanding the relations so that it can be easy for the companies to attain success in the competitive market. The companies should maintain proper understanding with the customers which can also be stated as customer relationship management. There should be customer’s relationship management so that it can be easy to analyze the needs and wants. This can also give positive impact on the profit margin of the company.
References
Alessandri, G., Borgogni, L. and Latham, G.P., 2017. A dynamic model of the longitudinal relationship between job satisfaction and supervisor?rated job performance. Applied Psychology, 66(2), pp.207-232.
Dane, E. and Brummel, B.J., 2014. Examining workplace mindfulness and its relations to job performance and turnover intention. Human Relations, 67(1), pp.105-128.
Hill, N. and Brierley, J., 2017. How to measure customer satisfaction. Routledge.
Kaura, V., Durga Prasad, C.S. and Sharma, S., 2015. Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction. International Journal of Bank Marketing, 33(4), pp.404-422.
Khodakarami, F. and Chan, Y.E., 2014. Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), pp.27-42.
Kumar, V. and Reinartz, W., 2018. Customer relationship management: Concept, strategy, and tools. Springer.
Nyadzayo, M.W. and Khajehzadeh, S., 2016. The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, pp.262-270.
TechTarget., 2018.Customer relationship management. [Online]. Available at: https://searchcrm.techtarget.com/definition/CRM . [Accessed on 17 September, 2018].
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