Customer relationship management
Overview
In this chapter we shall consider not only how relationships can be developed with customers but why this is necessary to sustain a successful business. In doing so, we will carry through from Chapter 10 the theme of the role of technology in managing customer relationships. To be able to retain customers they must feel satisfied with the product or service received. Thus we also examine customer expectations and perceptions which leads us into the area of service quality.
After we define service quality and note its relationship to customer satisfaction, we examine, in depth, the gaps model of service quality. Even though this model was developed in 1985, it is the basis of the majority of current research, and thus worth consideration before concluding with customers' perceptions and expectations in service quality.
Topics
The following is the outline of the topics covered in this chapter.
- 12.1 Introduction
- 12.2 Customer relationship management
- 12.3 Customer satisfaction
- 12.4 Service quality
- 12.5 Summary
Learning outcomes
The learning objectives for this chapter have been carefully constructed to reflect the most significant concepts and ideas we are going to cover, and to provide a focus for your work during the chapter. After completing this chapter you should be able to:
- discuss the reasons why service organisations develop relationships with their customers
- define customer relationship management
- explain the role of technology in customer relationship management
- describe the advantages of customer retention
- understand the concepts of customer value and customer satisfaction
- describe techniques of measuring and monitoring customer satisfaction
- explain the connection between customer satisfaction and service quality
- discuss the use of the SERVQUAL questionnaire.
