Customer relationship management: a new dimension of managing customers

Abstract

CRM or Customer Relationship Management is a system that caters to the management of a firm’s interactions with past, present,and future customers. Since the beginning of the new millennium, traditional marketing practices have not been effective in yielding good returns. Companies have turned reluctant to spend huge advertising expenditure and marketing research –the potent tool of getting deeper insights of customer has lost its charisma. Due to enigmatic customer behavior, it becomes inevitable for the companies to develop new marketing strategies. CRM has emerged as a new marketing strategy in that tenor.This article deals with importance of CRM and customer modeling. Further it extends the constraints of CRM and how it affects the organizational change.