Customer Service(CRM) Impact on Organizational Performance

Since the main goal of an organization is to satisfy the needs of customers which will lead to increased profit. This indicates that without the existence of customers business activities
will be futile. Business owners often concentrate on the improvement of their products, this is one of the basic features of the production concept. Often they ignore their customer care and
relationship; as a result, many of their customers move their purchasing interests to organizations who can serve them better. The problem here is that they fail to understand that customers‟
value, care and concern is far above the product quality. So organizations tend to try their best as much as possible to retain their customers and even attract more.

The ultimate purpose of CRM, like any organizational initiative, is to increase profit. In the case of CRM this is achieved mainly by providing a better service to customers than
competitors do. CRM does not only improve the service to customers, a good CRM capability will also reduce costs, wastage, and complaints. CRM also reduces staff stress,
because attrition – a major cause of stress – reduces as services and relationships improve. CRM enables instant market research as well: opening the lines of communications with your
customers gives you direct constant market reaction to your products, services and performance, Customer service comes in different form but t he goal is to keep the customer happy at all times, even when they are in the wrong. far better than any market survey. Good CRM also helps you grow your business: customers stay with you longer; customer churn rates reduce while referrals to new customers increase from the increasing numbers of satisfied customers; demand reduces on fire-fighting and trouble-shooting staff, the organization’s service flows and the teams work more efficiently and more happily.

Customer satisfaction is a vital CRM variable that must not evade our empirical scrutiny. Indeed, customer satisfaction is central to successful application of the marketing concept. Many
company mission statements and marketing plans are designed around the goal of increasing customer satisfaction. (Claudia, et al 2001) The concept of relationship is very complex because it relates to different disciplines but with regards to the topic at hand, relationship or business relationship can be viewed or described as being distinct from, but related to, concepts such as Enterprise relationship management, consumer behavior and customer relationship management Customer relationship management seeks to provide a complete and holistic model of business relationships and business relationship value over time, in order to make the various aspects of business relationships both explicit and measurable (Parvatiyar et al 2000). A mature CRM model will ultimately support both: · Strategic business research and development efforts, · Tools and techniques that implement CRM principles. As a result of the effectiveness and intensity of the concept of CRM, customers would benefit
from it through experiencing enhanced product delivery and organizations themselves would gain from it through increase in customer database, increase in performance and profitability.

At, we know that keeping existing customer’s happy, with expected and desired service is less costly that trying to attract and retain new customer’s. Having the Right
People, in the Right Place and at the right time will ensure that the company is proving the service’s that customer’s come to expect..


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