International Journal of Scientific Research and Management (IJSRM)

||Volume||5||Issue||07||Pages||6431-6441||2017||
Website: www.ijsrm.in ISSN (e): 2321-3418
Index Copernicus value (2015): 57.47 DOI: 10.18535/ijsrm/v5i7.78

Theoretical Framework of Customer Relationship Management: An

Overview
Dr.C.Mugunthan, G.Kalaiarasi
Assistant Professor,
Department of Commerce,
Periyar University PG Extension Centre,
Dharmapuri- 636 705, INDIA.,
Ph.D Research Scholar,
Department of Commerce,
Periyar University PG Extension Centre,
Dharmapuri – 636 705, INDIA.

Abstract
Customer Relationship Management is a strategy or philosophy which provides a vision for the company to

deal with the customers. The aspire of a customer relationship management strategy is to maximize profitable

relationships with customers by increasing the value of the relationship for both the seller and the customer of

the most companies. For the success of any enterprise, customer relationship management is a fundamental

requirement and it requires a holistic strategy and process to make it successful. This paper explores the

conceptual framework of customer relationship management.

Key Words: Customer Relationship Management, Components and Benefits, Importance

I - Introduction: technique characterized and created with

development of information and communication

CRM has developed into a most important
technologies. It is an important approach in trade
corporate strategy for several organizations. It is
and return to Personal Marketing in the 90 des. In
concerned with the creation, development and
fact, this system is a strategy to accumulate
enrichment of individualized customer
customer business needs and behaviors that lead
relationships with carefully targeted on customers.
to stronger relationships with customer. Finally, a
Customer groups resulting in maximizing their
solid relationship is the way to success or
aggregate customer life time value through the
achievement in any business.
customer relationship management. CRM is the

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 DOI: 10.18535/ijsrm/v5i7.78

Building permanent customer relationships of both sides through intuitive, individualized and

is the way to create superior customer value and esteem included contacts.

satisfaction. Kotler and Armstrong (2008), in

Berry (1995), in the marketing process
their view fulfilled customers are more likely to
attracting new customers should be viewed only
be truthful customers and to provide the company
as an intermediate step. Equal aspects of
a bigger share of their business. The heart of many
marketing are developing close relationships with
successful business firms is targeting, acquiring,
these customers and turning them into faithful
and retaining the right customer. Once a firm has
ones. In this way he proposed relationship
won customer it sees as advantageous, the
marketing as attracting, keeping up and in multi
challenge shift to building relationship and turning
benefit organizations improving customer
them into loyal customers who will make growing
relationships.
revenue for the firm in future. Customer
In the present period agreeable relationship
Relationship Management (CRM) is concerned
with customers is more essential. Customer
with customer information management, that is,
relationship management (CRM) included the
managing detailed information about individual
broad consideration of scholars, practitioners and
customers, and carefully managing customer
experts. Promoting researchers are concentrate the
touch points in order to maximize customer
nature and scope of CRM and expanding
loyalty, is now being focused on the overall
conceptualizations concerning the esteem and
method of structuring and maintaining profitable
procedure of helpful and two-path relationship
customer relationships by delivering superior
amongst purchasers and merchants. Numerous
customer value and satisfaction.
researchers interested in different sub-disciplines
Shani and Chalasani (1992), defined over a long
of promoting, for example, channels, services
period relationship marketing as an integrated
marketing, business-to-business marketing,
efforts to identify, keep up and develop a system
advertising, and so forth, are actively engaged to
with individual customers and to constantly
study and explore the conceptual foundations of
strengthen the system for the common advantage
managing relationship with the customers. They

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 DOI: 10.18535/ijsrm/v5i7.78

are keen on techniques and procedures for customers. It is a trip of tactical process,

customer classification and selectivity; one-to-one association and specialized change whereby a

relationships with individual customers; key in company tries to better deal with its own

account management and customer business particular undertaking around customer practices.

improvement processes; frequency marketing, To adjust income profits with most extreme

loyalty programs, cross-selling and up-selling customer satisfaction it involves obtaining and

opportunity; and various form of partnering with conveying knowledge about one customers and

customers including co-marketing, joint- utilizing this information over the different touch

advertising, co advancement and different forms points.

of strategic alliance (Sheth and Parvatiyar CRM is a strategy that can fabricate long

2000). haul associations with the customers and

II – Customer Relationship Management: increment benefits through effective management

As of late CRM has a standout amongst frameworks and the utilization of customer

the most talked subjects in corporate circles. centered techniques. Customer relationship

Customer relationship management is a system management is a customer arranged promoting

used to take in more about customer‟s needs and exertion which is in charge of gather and oversees

practices to develop stronger relationships with customer subtle elements keeping in mind the end

them. Over all great customer relationships are at goal to serve the customers in the present and

the heart of achievement of the business. The idea future. CRM is a key promoting process whose

of CRM has been a focal part concept which has object is to foresee, comprehend and deal with the

attracted all aspects of business. CRM has request of customers. Foundation, improvement,

pertinent and requesting applications in service supports and enhancement of long haul commonly

marketing. Customer relationship management important connections is the customer relationship

(CRM) is a business strategy that intends to management. It is an arrangement of business

understand, foresee and deal with the needs of an practices to perceive, confirm, secure, create and

organization‟s customers and in addition potential keep up feasible gainfulness and client

Dr.C.Mugunthan, IJSRM Volume 5 Issue 07 July 2017 [www.ijsrm.in] Page 6433

 DOI: 10.18535/ijsrm/v5i7.78

unwaveringness through giving fitting item and relationship marketing strategies and IT to create

management, in due time (Galbreath and profitable, long term relationships with customers

Rogers, 1999). and other key stakeholders.” It requires a cross

Furthermore, a standout amongst the latest functional integration of process, people,

meanings of CRM is the definition of (Rababah operations and capacities that is empowered

K, Mohd H, and Ibrahim H, 2010) who through data, innovation and applications. Sin et

proposed that “Customer Relationship al. (2005) defined CRM as “a wide-ranging

Management is the working of a customer- strategy and process that enables an organization

oriented culture. By which a strategy is made for to identify, acquire, return and take care of

gaining, upgrading the profitability of, and profitable customers by building and maintaining

holding customers, which is enabled by an long-term relationships with them.” It was

Information Technology application; for achieve suggested that the core theme of customer

mutual benefits for both the organization and the relationship management revolves around

customers”. Consequently, for increasing the individual buyer-seller relationship.

understanding of the perception of customer Kumar & Reinartz (2006) agreed with

relationship management there is a need for a the above definition that CRM is purely a strategic

broad and important investigation for the different method by which the institution's more profitable

components and elements of CRM program. customers are selected, and interactions among

People, processes and technology, these three this institution and these customers is determined,

elements consisted in CRM initiative or program. in order to accomplish the goal of maximizing the

Payne and Frow (2005) defined “CRM is present and future values for customers. Unlike all

a strategic approach with the purpose of that is the above, (Ramaseshan, 2006) defined CRM

concerned with making enhanced shareholder from the service point of view as a process of

esteem through the advance of appropriate achieving a continuous channel of communication

relationships with key customers and segments of with each customer on their own, using all the

the customer. CRM unties the potential of available means to know the quantitative

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 DOI: 10.18535/ijsrm/v5i7.78

anticipated response of that customer as a result of business they do or as indicated by

practicing marketing activities to the degree that physical position and are allocated to

maximizes the general profitability of the different customer. This helps to focus and

organization. . It is clear that this definition concentrate on each and every customer

concerns about short-term CRM and not long- independently.

term CRM. (Brink & et.al. 2006) defined CRM 3. CRM system is utilized to deal with the

as a specific marketing activity by which the existing customers and furthermore helpful

institution prepare its customers to use its in getting new customers. The process first

resources to produce and market a priceless begins with distinguishing a customer and

product for them. Supporting the social cause and keeping up all the corresponding details

improving the marketing performance is the two into the CRM system which is also called

goals of aims of customer relationship a „Chance of Business‟. This is

management. effortlessly and effectively done by an

III – Significance Of Customer Relationship incorporated CRM system.

Management: 4. The most grounded part of Customer

Customer relationship management helps in Relationship Management is very cost-

diminished seeking and connecting customers. effective and extremely practical. The

advantage of fairly actualized CRM

1. CRM includes each and every details of a
system is that there is less need of paper
customer. With the assistance of this
and manual work which requires lesser
information it is very easy to track a
staff to manage and lesser assets to deal
customer accordingly and can be used to
with. The technologies used in actualizing
determine which customer can be gainful
a CRM system are also very cheap and
and which customer can not profitable.
smooth when contrasted with the
2. Customers are gathered by various angles
conventional method for business.
in frameworks of customer relationship

management according to the type of

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 DOI: 10.18535/ijsrm/v5i7.78

5. All the points of interest in CRM system is Lead Management: Lead Management

kept unified which is accessible anytime essentially includes the following and dispersion

on fingertips. This lessens the procedure of offers leads. This advantages the business, call

time and expands efficiency. centre and marketing enterprises also. The work

6. Efficiently managing every one of the includes overseeing market campaigns, making

customers and giving them what they customized forms, mailing records and so forth.

really require expands the customer This is finished with a view to catch whatever

satisfaction. This expands the possibility number deals leads as could be expected under the

of getting more business which at last circumstances so deals benefits.

improves turnover and profit. Sales Force Automation: Sales Force

7. If the customer is fulfilled they will Automation is by a wide margin one of the most

dependably be faithful to you and will stay basic segments of customer relationship

in business always bringing about management and furthermore one of the first.

expanding customer base and eventually Utilized by all organizations it is only a product

net development of business. arrangement that incorporates anticipating,

following potential connections and processing of

IV – Components Of CRM:
sales.
Individuals Management: Individuals
Customer: customer is the main segment
Management is the viable utilization of
of an organization‟s business on which the
individuals in the correct place at the ideal time.
development and maintainability of the
As per individual Management a compelling
organization relies on. A customer is the element
people procedure is initially received, and then the
that consumes products and can pick between
workforce is considered, abilities and
various products or services.
improvement examined and finally the required
Customer Service: The customer service
strategy needed for advancement and change is set
segment in CRM is basic. This is on account of
down and implemented.
CRM concentrates on assemblage of customer

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 DOI: 10.18535/ijsrm/v5i7.78

information, gathering data about their buying incorporate the capacity to have this data at your

patterns and gives this data to each and every moment access whenever. Chronicled information

department that requires it. In this manner can likewise be spared to use for correlations later

fundamental divisions like deals, advertising and on.

work force remain to pick up in their insight into Examination: Investigation includes the

the customer. examination of data with the goal that data can be

Marketing: Marketing is only the limited utilized to study market trends. An entire pattern

time exercises that are included in elevating an study is made conceivable because of the capacity

item either to an overall population or to a to make charts, figures and outlines utilizing both

particular gathering. Marketing is not quite the recorded and current data. For data like charts

same as sales and promoting in that one refers to tables, log INS and so on dashboards can likewise

demonstration of pitching itself while alternate be utilized for expanded visibility. This is a

selling itself refers to the procedure included. fundamental and significant part of CRM as it

Work Process Mechanization: Work empowers an investigation of data that is expected

processes incorporate cutting expenses and to make an estimate of the business condition at

streamlining forms. It essentially spares a few any given point.

people from doing likewise work over and over. It

lessens work and eases work drive of pointless V – Objectives And Targets Of Customer

undertakings. It likewise incorporates things like Relationship Management:

directing out printed material and rounding out of Keeping in mind the end goal to get more

structures that are fundamental. advantages from customer relationship

Business Revealing: This is only having management has a reasonable arrangement of

the capacity to distinguish the correct position of destinations and objectives all in general.

your organization at any given purpose of time.  To Lessen Marketing Overheads.

CRM assumes a critical part in that it provides an  To Enhance Customer Satisfaction.

account of the business. The upsides of this part  To Increase Exactness.

Dr.C.Mugunthan, IJSRM Volume 5 Issue 07 July 2017 [www.ijsrm.in] Page 6437

 DOI: 10.18535/ijsrm/v5i7.78

 To Give Better Customer Service. VI- BENEFITS OF CRM:

 To Keep up Customer Maintenance. Embracing customer relationship management

 Develop Better Working Practices and forms association or firm gets the accompanying

Maintain an Efficient Business. the following benefits:

 Produce Better Marketing Efforts with the  Expand better correspondence channel.

Objectives of Boosting Benefits.  Gather customer related data.

 To Increase New Customers.  Make itemized profiles of individual

 To Hold Existing Customers. customers.

 To Improve Customer Loyalty.  Improved customer satisfaction.

 To Decrease the Different Expenses.  Access to customer connection record,

 Increase Sales arrange information, and customer data at

CRM itself is a learning process in which all touch focuses.

information is consistently refreshed and spoken  Recognize new offering openings.

with customers so customer request can be  Increased price of the market share and

dissected and suitable reaction to the customer can profit.

be completed (Alehojat, Chirani and Delafrooz,  Increased incomes.

2013).  More compelling marketing.

CRM is essential for an association for the  Improved customer benefit.

manageable development of its profitability.  Improved reaction time to customer

Identification of CRM determinants identifies prerequisites for information.

with the way of the association. CSR determinants  Enhanced loyalty of the customers.

can be utilized to advance administration quality  Better office to meet customer

for making client fulfilled. The components are prerequisites.

the power markers that straightforwardly impact  Improved quality declaration and system
CRM's general reviews (Shamsuddoha, Tasnuba administration.
and Alamgir, 2011).

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 Reduced expenses of purchasing and relationship management benefits for customers

utilizing product and services. are more critical in customer‟s satisfaction.

 Better position against general and overall  Increase customer benefit.

competition.  Personalized balanced management

The customers who consistently buy an expanded.

organization‟s product over a drawn out stretch of  Responsive to customer‟s prerequisites or

time have a tendency to create more incomes and necessities.

are moderately less expensive to serve than  Customer division.

different customers (Reichheld and Aspinall,  Improve marketing customization.

1993). Higher customer gainfulness is guaranteed  Integration of multichannel.

by CRM. CRM makes more an incentive for the  Time saving.

customer, so without a doubt CRM fabricates  Develop customer information.
profitable customer relationships. VII – CONCLUSION:
The current marketing procedures are drawing Customer Relationship Management is in
nearer towards giving a one of a kind service management, which is based relationship
administration; this is the reason securing and information intensive. CRM meets the
expansive volumes of customer information and customer‟s expectations, improve the service
subtle elements have turned into an essential quality, hold the customers and improve the
necessity. So as to anticipate the likelihood of profitability of the organization through
repeat buy, or purchasing extra products and productive and effective management framework.
individual marketing programs, the association Organizations are influences by new innovations
needs to gather the customer‟s data in view of by quickening the speed of knowledge and data.
their co-operation with the association (Peppard, At present, supervisors and proprietors are bit by
2000). bit convinced about utilizing of customer
As per Nastaran Mohammadhossein and relationship management in their organization to
Nor Hidayati Zakaria (2012), customer enhance the income and benefit, nature of product

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 DOI: 10.18535/ijsrm/v5i7.78

and services, customer‟s maintenance and 4. Nastaran Mohammadhossein and Nor

fulfillment. By executing a successful customer Hidayati Zakaria (2012), “CRM Benefits

relationship management, the advantages are for Customers: Literature Review (2005-

emerging and the organizations are keener in 2012)”, International Journal of

using CRM system. In spite of the fact that there Engineering Research and Applications,

are such a large number of advantages for Volume 2, pp. 1578-1586

organizations which are the consequence of 5. Parvatiyar, Atul and Jagdish N. Sheth

actualizing CRM however there are a few (2000), “The Domain and Conceptual

advantages that will positively affect customers as Foundations of Relationship Marketing,”

well. in Handbook of Relationship Marketing,

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