This paper seeks to assess the several ways that customer relationship management aids organisations in gaining a competitive edge in a given market environment and in the implementation of other strategic organisational objectives related to a company. Customer relationship management is a crucial organisational and marketing approach which translates into improved marketing strategies. The role that customer relationship management underscores in the realisation of an organisation’s endeavours to meet its strategic core business goals makes research on the CRM critical to gaining invaluable insights which when optimised can be pivotal to an organisation’s success.
In the recent past, customer relationship management has arisen as a favoured marketing strategy which basically involves understanding the customers’ preferences and adapting them to the organisation’s overall marketing strategy. The Customer relationship management approach engages the management of an organisation to create, nurture and develop on relationships with all their customers as a means with which to retain old customers while at the same time attracting new customers. Therefore, an organisation’s ability to pinpoint and attract more customers leads to the eventual retention and articulate identification of strategic customers. Thus, customer relationship management can be considered as a continuously evolving course of action which ultimately deviates from previously upheld sentiments with regards to the traditional business strategies which focus on internalised decision making. Customer relationship management as a business strategy requires organisations to constructively interact with customers while at the same time making informed investment decisions on people, cutting edge technology and up to date business processes.
In today’s’ ever changing market environment which is increasingly becoming more and more competitive the customer has become a crucial asset and retaining customers has developed into quite a challenge for organisations. This is a challenge that organisations have to go through to retain a competitive edge in an ever evolving market environment. This has led most innovative organisations to adopt and further more invest in customer relationship management in an effort to better come to terms with what the customers expect from an organisation’s products or services and thus be able to formulate organisational strategies which can translate customer behaviour and react accordingly to the customer preferences.
It has therefore become a common marketing strategy that organisations maintain databases for customer oriented services to act as massive repositories of potentially invaluable data and knowledge which can be used and as such go a long way in determining the success of an organisation as a result of enhanced customer service. Over the past few years, data mining has been highlighted as a initiative which has contributed positively to customer relationship management such that it provides a basis for determining valuable customer preferences patterns which are not accessible to customers.
To maintain a competitive edge in an ever dynamic market environment, organisations seek to invest in the latest customer relationship management software which emphasizes on data mining. However, it is worthy to note that the implementation and subsequent effectiveness of acquired software is dependent on the efficiency of critical success