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The importance of trust
The importance of trust
The importance of trust
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In order to elaborate on the thesis topic, there is a need to introduce basic theo-retical concepts used in this work. The author concentrates on several main terms revealing a concrete meaning of each.
Customer relationship management (CRM)
"CRM is a core business strategy that integrates internal processes and func-tions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high quality customer-related data and enabled by information technology". (Buttle 2009, p. 15)
Electronic customer relationship management (eCRM) eCRM refers to a business strategy that connects all business aspects of a company together with the aim of creation and maintenance of customer loyalty via utilization of technology. It pretends to manage company´s interaction with its clients via various channels and media in order to keep and develop relationships (Fjermestad and Romano 2006)
Trust
Peelen and Beltman (2013, p. 11) define trust as a "willingness to rely on an exchange partner in whom one has confidence". It refers to the desire of one party to create and develop a positive behaviour towards another party with an intention to create a positive outcome (Van Vuuren et al. 2012)
Commitment
Commitment is a maximum effort made by exchange partners towards their relationships with the purpose of its maintenance (Morgan & Hunt 1994). "Commitment to the relationship is defined as an enduring desire to maintain a valued relationship", claim Morgan and Hunt (1994, p. 23).
Website
"The organization's website is a platform that it owns on which it can more ef-fectively manage the way it is presented and the way it wants to interface with customers". (Peelen and Beltman 2013, p. 310)
3 Theoretical framew...
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...and its customers based on basic rela-tionship principles. It is mutual, interactive and iterative, creating and maintain-ing its own exchange context over time. Changing behaviour of each party to-wards another, the relationship provides them with benefits that lead to suc-cessful relationships. A successful relationship will result each party to trust another, it means that a successful relationship will be characterized by high trust level and involved parties will be ready to contribute and make an effort for relationship maintainers (Peppers & Rogers 2007).
Summing up, it can be said that the relationship has a wide range of character-istics and associations. The Figure 1 conjures different feelings and associa-tions that have exchange parties towards its relationship. The author created the figure based on summarized data according to Peelen and Buttle (2013).
Or, then again perhaps, VTB can use the CRM structure to discover about better customer advantage, deliberately pitching, and market designs. According to Bang (2005) CRM is viewed as an educated business philosophy to make and keep up whole deal customer associations. For example, CRM system would be an enabling specialist of business comes about like future repeat purchases. VTB's should use the CRM as a focus business methodology to robotize customer advantage. All things considered, customers tend to put orchestrate at long last and expect the package passed on time. Henceforth, on the operational side, data must be gotten, fused, arranged and fulfilled, to satisfy its targets (Bang 2005). The operational viability of the CRM structure is to accumulate the data from customer to be deciphered later on to
1.1 Explain the value of customer service as a competitive tool Customer service is valued as a competitive tool by many organisations. It gives you the ability to gain customer loyalty while meeting the customer’s expectations. Staff will have the skills and knowledge that will provide a competitive edge. Most organisations are known for the quality of their customer service. This means that they are known for good customer service or poor customer service.
Customer Relationship Marketing (CRM) is more focused on what happens after a customer is acquired. The goal is to develop a long-term customer relationship that benefits both the customer and the company. This summary will discuss the purpose of customer relationship marketing, the customer’s value versus the company’s value, strategies used to implement CRM, and review companies that have successfully implemented customer relationship marketing programs.
of trust can begin to shape. “We have to recognize that there cannot be relationships unless there is
A customer experience management (CEM) study seeking to understand what business-to-business companies are doing in this field examined what seems to be driving the strongest business results. For example, some companies attributed CEM to their financial progress, such as 200 percent increase in market share over the past four years or 20 percent improvement in revenue over the past year. Some companies mentioned figures such as 15 percent reduction in churn and so forth. Among the companies with strong business results, there were some that also had at least 20 percentage points advantage in most of the other best practices in the study. Six practices had strong correlations.
I do have to admit that sometimes this can be extremely difficult and may leave one feeling a bit vulnerable. Commitment is the ability to take a risk and to accept the possibility of disappointment or pain. Again, I have to agree that commitment can be demanding, but to look on the bright side, it can also be rewarding. To be able to stay in ...
Customer relationship management systems are part of enterprise applications. These systems are used to help manage relationships with customers, Information is provided to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention (Laudon & Laudon, 2012).In today’s world, customer management relationship systems have given companies a large list of ways to interact with customers. Even though those ways are applied occasionally, companies still find even newer ways to provide customers an enjoyable experience for their products and services. Today, the customer relationship management industry is mainly focused on components, such as crowdsourcing, customers using mobile apps of companies and interaction from the social media teams of companies. Needless to say, Starbucks, coffeehouse chain, have pioneered in this system. Starbucks started out as a café in Seattle, Washington in USA at1971. One day, in 1981, a man named Howard Schultz entered in the café for the first time and fell into homelike environment of the café. He adored the place so much that, in 1987, he and a group investors acquired the café. From there on out, as of June 28, 2015, they have built more than 24000 stores in 70 countries
CRM is a philosophy and a researcher wants to determine the critical success factors activate this philosophy in Pizza Hut. Three components including people, processes and technology, and these three elements should act interactively to ensure the success of CRM in any business CRM.
In today 's business environment, it is very important to understand the consumer 's behaviour as it shapes the market trends. They are well aware, more educated, and more serious in demanding for product and services that they require and they are well aware of the technology and comparing the products. It is imperative for the organisation to understand and share their internal customer knowledge and then combine it with new information about their customers in order to compete in the market and to achieve the future success. The basic three steps in marketing process is to understand the market place, designing marketing strategy in order to customer driven and making up marketing program, which leads to the forth and most important step, is to build a profitable customer relationships, ( kotler & Armstrong, 2006). In order to establish such relationship it is most important to understand Customer relationship management (CRM) which is concept of modern marketing reforms. Kotler 2006, customer relationship management is the overall process of building and maintaining
Michal Stojanov’s (2009) study on ‘Importance of customer relationship management for retail trade’ has written about the highly competitive environment for customer relationship management (CRM) is concerning on critical importance of clients for ev...
Buyer-supplier relationship established since human beings started to trade goods and services. The relationship developed naturally over time after buyer and supplier developed trust and friendship which was supported by quality of product and services (Wilson. D.T, 1995). The relational development is accelerated as firms attempt to improve their relationship to achieve company goals. At the same time, the expectations in the performance have increased, and this has making the satisfactory relationship became more difficult.
In English today, many words are interpreted and defined in several ways. The word “trust” often receives creative interpretations created by the people in society.Trust displays one of the most vital fundamentals seen in any relationship, whether it be a friendship, a business relationship, family, or a marriage. While the definition of trust according to the Merriam-Webster Dictionary is specified as the “assured reliance on the character, ability, strength, or truth of someone or something”, trust is recognized as “the ability to believe someone to be truthful” according to the Cambridge Dictionary. The definition of trust includes the action of putting faith in someone or something’s character to remain honest.
b. Introduction of products and services to loyal customers that may not wholly relate to the original purchase.
Computer Economics, a research and consulting firm, surveyed 209 IT organization worldwide regarding their IT investment plans. The leading trends “were identified as low risk/high reward based on their cost predictability and their positive return on investment for organizations within two years’ time.” CRM tops the list for 2014 (Mackie, 2014)
Customer relationship management is a cross-functional process to achieve a continuing dialogue with customers, across all their contact and access point, with personalized treatment of the most valuable customers and to ensure customer retention and the effectiveness of marketing initiatives. It is also provide the chance for customers to interact with the brand.