Question

What is customer relations management, and what are three reasons why is it so important to manage this concept? Explain each reason thoroughly with an example. Refer to the class text at least once to justify your response.

Answer 1

Explanation:

Customer Relationship Management meant to be practices and technology that is being used to analyze customer interactions that meant to enhance the customer service.

• Create long lasting relationship with customer:

One of the important reason of CRM is to retain the customer for a long time and company does not have to work more to those customer again and again.

Example: Car brand Lamborghini provide the customer service that their customer don’t have to look out anywhere and company also don’t have to spend next time on those customer as they provide more customized experience based on customer’s request.

• Better customer service after sale:

CRM also manage and look for better welcome even after customer has purchased the product from a company. This create a sense of loyalty from customer too.

Example: Apple Inc. provide such after sale service and whenever customer come to company after purchase they welcome them so much better way that customer feel such loyalty toward company and never get to another product.

• Creates brand image:

CRM can be expected by companies that have strong brand image and CRM is also help in creating brand image amongst customer that they purchase more thing from the same producer.

Example: Apple customer often end up buying more than only devises and Apple provide many services along with its devices, customer end up buying from iTunes store and retails store of its other than just devices.