Customer Loyalty / Customer Relationship Management. Does it Work? - Friday, December 05 2008
Customer Loyalty (the relationship) is not defined as how customers perceive their relationship with companies, as most often a customer rarely thinks they have any relationship with any company.
Customer relationship management is a popular concept but the concept itself is actually its biggest barrier.
The development of the Customer Relationship Management (CRM) marketing practice has made more and more people realize the importance of strong customer relationship in building sustainable competitive advantages where their markets "perceive" this thus, generating sustainable profits in the long run.
However, current popular CRM marketing practices often produces disappointing outcomes. Surveys show a surprisingly high rate of failure has been reported for CRM practices. The failure rate of CRM systems ranges from 50% to over 80%. The more popular this marketing practice gets the more people who realize that the current CRM practices hardly manages customer relationship.
