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The Purpose of a business is to create customers. A customer relationship managment system (CRM) can be the strongest weapon you have, to ensure that customers become and remain loyal. With CRM, loyal customers are not a happy accident created when an exceptional customer service representative, sales

Person or product developer intuits and responds to a customer need. Instead you, have at your fingertips the ultimate advantage-customer intelligence: data turned into information and information turned into a customer satisfying action.

Customer relationships in todays economy, is all about creating a closer bond in a high tech environment. Consider the success of Amazon.com. The CRM tools that support Amazons customer relationship strategy allow Amazon to:
Customer Relationship Management
  1. Add value to customer transactions by identifying related items with their customers.
  2. Reinforce a sense of relationship by recognising repeat shoppers and targeting them with a thank you, ranging from thermal coffee cups to one-cent stamps to ease the transition to new postal rates.
CRM is about managing relationships more effectively so you can drive down costs while at the same time increase the viability of the product and service offerings. According to Payne, the failure could be avoided by resorting to relationship marketing as it is concerned with bringing the three areas of customer service, quality and marketing into much closer alignment

A study of the strategic planning Institute of America had identified the following reasons to show why it is unsafe to rely on managerial opinions of customer perceptions.
  1. Management may not know what specific purchase criteria users consider important.
  2. Management may misjudge how users perceive the performance of competitive products on specific performance criteria. Those differences in perception of performance may exist for the most basic of criteria.
But recent researches point to the strategic importance of customer retention and specific programmes are being developed by many organisations to increase customer loyalty. The main important thing to be remembered is that a dissatisfied customer will be gained by a competitor.

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