What is Customer Relationship Management - 顧客關係管理 (CRM)

Twenty-five years have passed since the relationship Management 關係管理concept was first mentioned in the literature by Berry (1983). In recent years, it has also become a key topic in leading marketing books and is approaching its maturity stage.

Due to the ease of information exchange with the development of internet communication tools, customers are now better educated and it means that they are more sophisticated. The globalization growth of a company brings with a greater competition. Marketers nowadays need to put more effort on sustaining good relationships with its target customers in order to increase company profile awareness, brand identity as well as reputation.

For a company, as we understand, the financial ground plays an important role, as it is the conventional bottom-line of running a business. The profit is the baseline before a company starts considering to meet the social and ecological responsibilities. Therefore, marketers invest a lot on customer relationship Management (CRM) - 顧客關係管理 in order to find the jewel customers from the zircons.


Defining CRM - 顧客關係管理
CRM - 顧客關係管理 is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high-quality customer data and enabled by IT.
~ by Francis Buttle, Customer Relationship Management Concepts and Tools, 2004

CRM- 顧客關係管理 is an approach to build and sustain a long-term business with customers. It is also defined as “a management approach that enables organizations to identify, attract and increase retention of profitable customers by managing relationships with them”.
~ by Ovum report quoted in CRM- the business case for CRM,1999

Why CRM - 顧客關係管理
CRM - 顧客關係管理 improves business performance by enhancing customer satisfaction and driving up customer loyalty. Profit is always the most critical concern to any company. Statistics shows that a 5% increase in retention rate can increase company profits by 60-100%. Based on Pareto’s rule, also known as the 80/20 rule, most of the company revenue comes from 20% of the customers, retaining these most profitable customers is the core of CRM.

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