Customer relationship management (CRM) based on the belief that the development of relationships with customers is the best way to gain their loyalty. He argued that loyal customers are more profitable than nonloyal customers. Recently, academic researchers have questioned some of the basic premises that are used to support CRM in general and relationship marketing and customer loyalty programs in particular. This article critically discusses the assumptions underlying the CRM and the results of studies that are skeptical of its value. CRM should be made only after careful evaluation of its economic efficiency. "Hide
by Grahame R. Dowling Source: California Management Review 19 pages. Publication Date: April 1, 2002. Prod. #: CMR229-PDF-ENG
Related Case Solutions & Analyses:
Value Pricing at Procter & Gamble (A)
Optimizing Your Digital Business Model
Singapore Metals Limited, Chinese Version
iMatari
Global wine wars 2009: New World Versus Old
FLYHT: Crossing the Chasm
Google’s Plans to Enter the WiFi Market
Bayt.com: How Bayt.com Derived a”Place Surplus” in Dubai, U.A.E.
Archibald’s Black & Decker (A): Solving a Classic Marketing Problem in the Power Tools Division
Colgate-Palmolive France (C) (Spanish) Spanish
