Sample Thesis Paper
By acquiring knowledge of the demands of potential consumers, the modern day organization is able to take advantage of opportunities where a market segment can be captured (Newell & Godin, 2003).In this manner, while CRM allows organizations to develop and increase loyalty levels in current consumers, it also allows them to develop new relationships with customers and gives them an opportunity to expand their market share.
In the modern day world of business, CRM has become extensively sophisticated and is often carried out with the assistance of computer software designed for the singular purpose of implementing CRM strategies (Peel, 2002). Software such as this allows an organization to collect data and analyze it in an attempt to understand changing consumer trends and to adapt accordingly.
It is evident from the brief elaboration on CRM presented above that CRM allows organizations to develop in a manner that is most suited to the consumer, hence not only increasing customer satisfaction levels but also stimulating customer loyalty. CRM has often been referred to as the practical application of the 80:20 principle whereby 80% of the organization’s revenues are considered to generate from 20% of the organization’s consumer base (Koch, 2005).