Page 6 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Hitesh Jhanji, Lovely Professional University
Unit 1: Introduction to Customer Relationship Management

Unit 1: Introduction to Customer Relationship Notes
Management

CONTENTS

Objectives
Introduction
1.1 Definition and Scope of Customer Relationship Management

1.2 History and Evolution of Customer Relationship Management
1.3 Transformation of Customers
1.4 Touch Point Analysis (TPA)
1.5 Summary
1.6 Keywords

1.7 Review Questions
1.8 Further Readings

Objectives

After studying this unit, you will be able to:

 Explore the definition and scope of Customer Relationship Management
 Know the history and evolution of CRM
 Examine the transformation of customers
 Analyse the touch point analysis of CRM

Introduction

Customer satisfaction has always been a key element in the pursuit of corporate goals and
objectives. However, the current competitive environment fostered by liberalization and
globalization of the economy, and the rising customer expectations for quality; service and
value have prompted many companies to organize their business around customers they serve,
rather than around product lines or geographic business units. This is partly because customer
contact, care and insight have been rendered increasingly more practicable and economical
through computers, telecom technology and internet, historically, customer relationship existed
even in the pre-industrial era due to the direct interaction between producers and customers as
between farmers and buyers of agricultural products, or as artisans and craftsmen produced
customized products for each customer. It was when mass production of goods in the industrial
era led to the emergence of middlemen and transaction-oriented marketing, that direct interaction
between producers and customers became less frequent.
In recent years, however, several factors have contributed to the rapid development of direct
interaction between producers and customers. The concept of customer relationship management
as a co-operative and collaborative process has thus tended to be more common. Its purpose is
mutual value creation on the part of the marketer and customer. Customer Relationship
Management (CRM) solutions provide customer-oriented services for planning, developing,

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