There is no consensus on the definition of CRM. Generally, CRM is a technology-based business management tool for developing customer knowledge to strengthen profitable relations with customers. Firm creates customer knowledge in order to effectively segment customers, develop relations with profitable customers and find out how to handle those unprofitable customers. CRM system applications are operational and analytical. Operational reduces operating costs while providing a higher level of value to customers. It contains all applications directly in contact with customers and makes these functions more efficient and effective. Analytical CRM includes technologies to aggregate customer information to provide analysis of this data and improve decision making and actions. It’s based on technologies such as data warehousing and data mining. Physical, informational and organisational resources must be combined to implement CRM successfully. Successful implementation means enhancing relations with customers and improving firm’s competitive position on the market. It also means that CRM system helps a company profitably deliver such market offerings, which provide value to customers at the lowest possible cost.
CRM has been one of the fastest growing businesses since late 1990s and companies have invested huge amounts to implement CRM strategies, tools and infrastructure. The market for CRM software exceeded 14 % up from 2006 in 2007 and moderate growth is also estimated through 2010. Despite this, high failure rate of CRM strategies implementation is evidenced by market research studies. Successful implementation depends on four critical factors. Readiness assessment, an overview audit, which helps to assess the overall position i ...