IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER SATISFACTION AND LOYALTY: A STUDY OF TELECOM COMPANIES IN J&K

Abstract

INTRODUCTION:In today's highly competitive environment, companies need to look at their customers with all together a different perspective. The changing dynamics of business operations across the globe are characterized by intense competition, luxury of too many choices, enlightened and demanding customers, government regulation and a highly turbulent socio-economic environment. All these changes have made today's producer's shift from traditional to modern marketing practices. Customers are emerging as the potential stake holders on the centre stage of business activities. Their raising power and ability to get whatever they want at any time, from any place and any one has shaken-up the traditional marketing strategies. Globalization and global dynamics are forcing business organizations to change their strategies. Customer's experience is increasingly becoming an important aspect of business's survival.Today, customers are seen as the strategic partners in the success story of a business enterprise. This has made companies to realize the importance of retaining and managing value customers for long term profits. It is for this reason that traditional marketing orientation is shifting towards Customer Relationship Management approach. Customer Relationship Management is a management strategy to manage long term relationship with customers. It helps organizations to achieve and maximize customers' loyalty. By enabling organization to manage customer interactions across multiple channels of communication, CRM practices maximize the value drawn from every such interaction leading to better corporate performance. In a highly turbulent business environment, Customer Relationship Management provides a mean to connect with the customers not only to know them but also to encourage them to participate and lead the organizations in the marathon of growth and development.CRM is a customer- focused philosophy and culture to support organizations to gain sustainable competencies.REVIEW OF LITERATURE:According to Liljander& Starndivck (1995), Relationship should be defined from customer's point of view. Organizations must strengthen this relationship and try to find out what makes their customers more committed. They further observed that the nature of relationship between the organization and the customers is based on customer commitment and relationship satisfaction. Global dynamics have propelled a shift of power from seller to buyer and have made companies not only to meet but exceed customers' demands (Mack, Mayo, & khare, 2005). Marketing practitioners across the globe have strongly recommended the importance of building close relationship with customers (Day, 2000; Lemon et al, 2002; Sheth and Parvatiyar, 1995). Companies are adopting relationship marketing principles to develop long lasting relationship with their value customers.Greenberg (2010) observes that CRM is a set of strategies that would effectively manage the interaction of customers with companies and the subsequent relationships thereafter. Some companies have created management positions to take care of relationship building activities (Roger 2005). CRM enables organizations to link their front office and back office functions with their customer touch points (Fickel, 1999). Hence the purpose of CRM is to serve the customers in better way, retain valuable customers and to enhance organizational performance (Fjermestad & Romano, 2003). Companies should focus on the integration of people, processes and technology to gain long-term competitive edge over competitors and in order to earn profit (Bygstad, 2002). Customer focus is the basic concept behind Customer Relationship Management. W Ravi Kumar (2011) mentions that, CRM is the buzzword in the Indian corporate sector today as cut throat competition in the liberalized Indian market place has rendered undertaking CRM, as an imperative than just an optional feature.CRM, now has been recognized as one of the major tools for enhancing customer loyalty and in the process reducing customer defections to competing firms. …