Paradigm shift in business strategies through customer relationship management

CRM is a business strategy which aims to create value for both organization and customers through initiating and maintaining customer relationships. As a core strategy, CRM is based on using a marketing information system and the company's IT infrastructure. CRM technology plays an important role in creating customer knowledge, which is the core of any CRM initiative. The CRM strategy will not yield the expected results without the proper use of information technology in the CRM processes. Organizational CRM readiness is related to the level of available technological resources which may be oriented towards CRM implementation.

Worldwide service organizations have been pioneers in developing customer retention strategies. Banks have relationship managers for select customers, airlines have frequent flyer programs to reward loyal customers, credit cards offer redeemable bonus points for increased card usage, telecom service operators provide customized services to their heavy users, and hotels have personalized services for their regular guests.

This Paper includes benefits, challenges and strategies and resent trends on Customer Relationship Management.