Customer Retention - CRM Application
Customer retention is an important customer relationship management (CRM) strategy. To be effective, retention programs must embrace a customer-centric management approach to identify customer needs, segment profitable customers and facilitate satisfaction and loyalty. In cyclical business environments, firms often make adjustments to address changing markets and economic environments. Firms will adapt and modify previous practices to meet contemporary needs. This trend has occurred with customer relationships as many firms use relationship strategies to build stronger consumer-business bonds. CRM-retention also has significant advantages for consumers by providing information which helps them become more informed. Yet, CRM-retention programs are frequently misunderstood, and firms often rely on IT solutions that often fail. CRM-retention programs must include a customer-centric management approach which identifies and segments profitable customers, while fostering satisfaction and loyalty. This is mutually beneficial for the business and customers, and it facilitates the efficient use of labor and technical resources to meet even more consumer needs.
Issues in Information Systems, Vol. XI, No. 2, 2010, 44-47.