Yik Man Wong
(Hong Kong Baptist University, Kowloon Tong, Kowloon, Hong Kong)

 

Abstract: A top priority of most firms is the building and maintenance of relationship with customers. While customer relationship management can be considered as old as business itself, a recent focus of both academicians and business executives is how business organizations can successfully develop CRM strategies and programs to enhance organizations’ understanding on how to manage relationship with customers. Notwithstanding the amount of research efforts (academic as well as practical) put in this area, and the number of CRM applications utilizing state-of-the-art technologies, a large number of CRM initiatives still fail to deliver. Reviewing the existing literature, this paper describes the multi-facet nature of CRM, integrating culture, people, process, and technology. While technology plays an important role in most CRM implementations, over-emphasis on technology, neglecting cultural and people dimensions, and ignoring the necessity for re-engineering various business processes across the organization, will probably result in another CRM failure. Applying this framework and approach, the author reflects on his personal observations and experience as a business manager involved in the implementation and operation of a CRM system in a sizeable organization from 2000 to 2010. Lessons learned from this case by the author, adopting an ethnographic approach as an participant-observer, supports that managing customer relationships is more than a mere application of sophisticated IT solutions. It is a business culture, with a big business picture in mind, supported by re-engineered business processes centered around customers, as well as commitment of management and employees at all levels.

 

Key words: CRM; customer relationship management; relationship marketing; marketing for non-profit organization

JEL codes: M310