Abstract
Relationship management is one of the most important aspects of any dynamic structure of a business organization. The term `relationships` alludes to the connection of internal and external valued customers. For many organizations,
Customer Relationship Management is an easy concept, but a hard reality. As the market consolidates, many people think that Customer Relationship Management is dead – or at least on life support. Thus investment by management in Customer Relationship Management is essential as it paves the way on what it’s going to look like in the future between the organization and its customers.
Introduction
We are living in a dynamic and irreversible world were valid relationships are a huge potential to the success of any business. Customer relationship management is a strategy used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. Good customer relationships are at the heart of business success. A business relationship life cycle is basically made up of a four stage development process. It begins with the birth, growth maturity and then finally dearth of the relationship. All organizations communicate with their customers using three basic building blocks. They Exchange, Interact and or Collaborate.
Stage 1:
New or growth relationship phase. The initial stage or birth of a relationship is characterized by low trust. Both parties do not enough information and data regarding each other. Both parties are hesitant and neither wants to fully commit themselves into the contract. There are low volumes of business transactions hence low profits. Speculation of potential loses is still high and the propensity to invest is still low. The service provider is still to know or gather facts about its customer. Communication is quick and responses are instant. The customer on the other hand is still to gain trust and confidence with the service provider.
Stage 2:
Growth...