Editing Customer relationship management (section)

==Effect on customer satisfaction==
[[Customer satisfaction]] has important implications for the economic performance of firms because it has the ability to increase customer loyalty and usage behavior and reduce customer complaints and the likelihood of customer defection.<ref>{{cite journal |last=Bolton |first=Ruth N. |year=1998 |title=A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction |journal=Marketing Science |volume=17 |issue=1 |pages=45–65|doi=10.1287/mksc.17.1.45 }}</ref><ref>{{cite journal |last=Fornell |first=Claes |date=January 1992 |title=A National Customer Satisfaction Barometer: The Swedish Experience |journal=Journal of Marketing |volume=56 |pages=6–22|doi=10.1177/002224299205600103 }}</ref> The implementation of a CRM approach is likely to affect customer satisfaction and customer knowledge for a variety of different reasons.

Firstly, firms can customize their offerings for each customer.<ref name="Mithas-2005">{{Cite journal|title = Why Do Customer Relationship Management Applications Affect Customer Satisfaction?|last1=Mithas |first1=Sunil |last2=Krishnan |first2=M.S. |last3= Fornell |first3=Claes |date = October 2005|journal = Journal of Marketing|volume=69|issue=4|pages=201–209|doi = 10.1509/jmkg.2005.69.4.201 |s2cid = 4650003|doi-access=free}}</ref> By accumulating information across customer interactions and processing this information to discover hidden patterns, CRM applications help firms customize their offerings to suit the individual tastes of their customers.<ref name="Mithas-2005" /> This customization enhances the perceived quality of products and services from a customer's viewpoint, and because the perceived quality is a determinant of customer satisfaction, it follows that CRM applications indirectly affect customer satisfaction. CRM applications also enable firms to provide timely, accurate processing of customer orders and requests and the ongoing management of customer accounts.<ref name="Mithas-2005" /> For example, Piccoli and Applegate discuss how Wyndham uses IT tools to deliver a consistent service [[customer experience|experience]] across its various properties to a customer. Both an improved ability to customize and reduced variability of the consumption experience enhance perceived quality, which in turn positively affects customer satisfaction.<ref name="Piccoli_Applegate_2003">{{cite report |last1=Piccoli |first1=Gabriele |first2=L. |last2=Applegate |year=2003 |title=Wyndham International: Fostering High-Touch with High-Tech |number=Case Study No. 9-803-092 |publisher=Harvard Business School |url=https://www.hbs.edu/faculty/Pages/item.aspx?num=29481}}</ref> CRM applications also help firms manage customer relationships more effectively across the stages of relationship initiation, maintenance, and termination.<ref name="Piccoli_Applegate_2003"/>

=== Customer benefits ===
With CRM systems, customers are served on the day-to-day process. With more reliable information, their demand for [[self-service]] from companies will decrease. If there is less need to interact with the company for different problems, then the [[customer satisfaction]] level is expected to increase.<ref>{{cite journal |last=Leach |first=B. |title=Success of CRM systems hinges on the establishment of measurable benefits |journal=Pulp & Paper |year=2003 |volume=77 |issue=6 |page=48}}</ref> These central benefits of CRM will be connected hypothetically to the three kinds of equity, which are relationship, value, and brand, and in the end to [[customer equity]]. Eight benefits were recognized to provide value drivers.<ref>{{cite journal |last1=Richards |first1=A. Keith |first2=E. |last2=Jones |title=Customer relationship management: Finding value drivers |journal=Industrial Marketing Management |year=2008 |volume=37 |issue=2 |pages=120–130|doi=10.1016/j.indmarman.2006.08.005 }}</ref>
# Enhanced ability to [[:wikt:targeting|target]] profitable customers.
# Integrated assistance across channels.
# Enhanced [[sales|sales force]] efficiency and effectiveness.
# Improved [[pricing]].
# Customized products and services.
# Improved customer service efficiency and effectiveness.
# Individualized marketing messages are also called campaigns.
# Connect customers and all channels on a single platform.

=== Examples ===
Research has found a 5% increase in [[customer retention]] boosts lifetime customer{{what|date=March 2024}} [[Profit (economics)|profit]]s by 50% on average across multiple industries, as well as a boost of up to 90% within specific industries such as [[insurance industry|insurance]].<ref name="Gillies-2002">{{Cite web|title = The story behind successful CRM - Bain & Company|url = http://www.bain.com/publications/articles/the-story-behind-successful-crm.aspx|website = www.bain.com| date=June 2002 |access-date = 23 November 2015}}</ref> Companies that have mastered customer relationship strategies have the most successful CRM programs. For example, [[MBNA]] Europe has had a 75% annual profit growth since 1995. The firm heavily invests in screening potential cardholders. Once proper clients are identified, the firm retains 97% of its profitable customers. They implement CRM by marketing the right products to the right customers. The firm's customers' card usage is 52% above the industry norm, and the average expenditure is 30% more per transaction. Also 10% of their account holders ask for more information on cross-sale products.<ref name="Gillies-2002" />

[[Amazon.com|Amazon]] has also seen successes through its [[customer proposition]]. The firm implemented personal greetings, [[collaborative filtering]], and more for the customer. They also used CRM training for the employees to see up to 80% of customers repeat.<ref name="Gillies-2002" />