Customer Relationship Management Crm

Published Date: 02 Nov 2017

Chapter 2:

Literature Review:

2.1 Introduction:

Customer Relationship Management (CRM) is one of those outstanding perceptions that developed the business world in the 1990’s with the pledge of evermore altering the approach by means of their customer. In a diminutive expression, it established a clumsy practice that was better in theory than in practice for a multiplicity of causes. First of all, it was minimally so tricky and costly to track and maintain the high degree of confirmations required precisely and continuously bring up to date customer information. In the most recent quite a few years, new software systems and proceeded tracking features have immeasurably enhanced CRM potentialities and it befalls in realism (Kincaid, 2012).

For continue existence and competitive advantage can only be conquered as a result of ascertaining a strong bond among the customers. CRM is the process of attracting the market and customers to growing and controlling relationships through recognized customers (Gronroos, 2012). This section will generate general literature about CRM and its connection with customer loyalty, customer satisfaction, and organisational performance discussed via literature on CRM and service quality in details. The gap model will be initiated and literature on service assurance, service improvement etc will be discussed in broadly.

2.2 The Definition of CRM:

Relationship marketing (RM) is the main source of the customer relationship Management (CRM), and these are subsisted because many researchers reassessed the literature by giving importance in the direction of the numerous stakeholders’ role as well as relationship marketing (Payne et al, 2011). Relationship marketing is mostly linked with relationship management in the attention of numerous Stakeholders, but the customer is the main focus of customer relationship Management (CRM). As a result, there is no requirement to spotlight on former type of shareholders by the Customer Relationship Management (Ryals and Payne, 2009).

Customer Relationship Management (CRM) "is the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profit. It is grounded on high-quality customer data and enabled by IT" (Buttle, 2004). CRM is a trading strategy to make out, promote and sustain long term lucrative customer affiliation. It entails mounting a system to decide on the most beneficial customer relationships and operating to supply those customers with service quality so as to go beyond their expectations (McDonald, 2010). Recently, it has been shown that the company has given the importance through improvement and effective services. CRM is a new method can be used for the purpose of new ccustomer's creation and also protecting Customer relationships. Not only that, it also provides support and retain outstanding rrelationship between the organization and customers through the mmaintaining customer loyalty (Shaw, 2009).

CRM is now considered the needs of each every organization. It matters not only with the products and quality, but the purpose of business expansion, it is very important to provide customers satisfactory quality service. If the Organization wants to maintain better communication with customers, then the organization can form their better and faster feedback (Neil Woodcock Merlin Stone, 2009). Aappropriate records and informations of the customers are mmaintained by useing CRM software. The main purpose of using CRM software is to facilitate contact with customers, so the organization can promote or present their products easily.

CRM is currently measured the desires of each every organization. It deals with the products, quality and the rationales of business growth. It is incredibly important to supply customers’ satisfactory quality service. If the Organization uphold enhance communication with customers, then the organization can form their better and faster feedback (Merlin Stone, Neil Woodcock, 2011). Aappropriate records and informations of the customers are retained by useing CRM software. The main function of using CRM software is to assist get in touch with customers, so the organization can endorse their commodities straightforwardly.

CRM software is used in order to gathering information and records where customer’s name, address, email, phone number etc are pointed out on users note page. Company collects these data through different sources. These databases are maintained according to market segmentation and the target market of the company. In rationale marketing business diagram and to represents it in the direction of the customer, organisation exercises these databases which is completed at the origins of up to date substance regarding customers (Bames J G, 2010).

2.3 CRM and its relationship with customers:

According to Alan Fairweather (2009), it has been shown that time can be wasted because of searching new customers rather then existing, then organization might loose their existing and old Customer. In accordance with Fairweather, Companies should adopt the strategy in that way; either they can retain their existing customers through delivering good service, or to focus on strategy, finding new customers where they might loose their existing customers. The demand for the company can be increased by retaining existing customers and give them more value for money. Therefore, the question about the importance of managing customer relationships in business is raised. The key is to make the understanding of the implementation of relationship management with customers and the importance of the business. CRM has the main objective to increase profitability and create competition in the business environment (Dominick, 2011).

According to Peter Drucker (2011), the creation of customer value is considered the main business objective that indicates to the importance of creating new customers and retain them how to develop the relationship between customers and companies. Reichhold and Earl Sasser Fredrick Voltage of the Harvard Business School researchers will include past and present that indicated the importance of customer retention and direct effect on profitability. CRM is also recognized as the powerful tool of management that is used to ensure customer loyalty. The organization uses to achieve this help to determine and direct the improvement of customer profitability as well as possible the generation of sales leads and provide quality assistance to plan and implement advertising and marketing campaign through to get a clear understanding about the goals and objectives. In order to survive in a world of business, the issue of competitive advantage must be achieved by the company (Georgi, 2012).

Thus, CRM can be defined as the relationship between customers and businesses where employees act as an intermediary. Vital role is played by employees in the long run and setting long-term relationship between the company and customers. It does not matter the importance of long-term, customers are responsible for keeping the cost of sales due to reasons of low cost marketing, can reduce the expense for the purpose of finding new clients through business contacts and reference (Gilligan, 2009).

Through better service, effective recognition is published by the distribution channel through effectively. CRM operation as the above discussion is not in a state of emptiness and therefore companies use this method relate to the importance of CRM. In addition, CRM is seen as the way to think about relationships with customers. Therefore, it has been believed by him that as a reference point, a company can use the themes of managing relationships with customers in relation to other organizational strategy (H Wilson, Daniel E, 2006).

2.4 CRM Conceptual Framework:

A framework of CRM as conceptual has been already developed by so many authors and researchers where they give priority towards the functions or CRM roles. The CRM’s conceptual framework is mainly used for providing support to get understanding about the concept of CRM and its role to create the value of customer and also along with the value of shareholder where the framework of CRM as strategic is used (Payne and Frow, 2005). It should be needed to understand about the meaning and definition of CRM and also along with its role and function and how CRM works on Business organization and give contribution on the achievement of the competitive advantage by the organization.

2.5 CRM Programs and Strategies:

The literature has careful review and corporate practices observation, in accordance of both of these matters, the program of CRM has been consisted of several forms. By specifying as broadly, the program of CRM can be divided into three forms and these three forms are: marketing of continuity, marketing of one to one, and at the last programs of partnering. These three categories are mainly related with the consumer, distributor consumer, and business to business consumer (Parvatiyar & Sheth, 2000).

Therefore, the practitioners of marketing take an attempt to search new and creative ideas through which the programs of CRM which are the combination of many variations make able the practitioners to establish the mutual and beneficial relationship in between the organization and customers. However, the main focusing point of the essence of the program of CRM is indicated onwards the selectivity of customers (Sheth & Sisodia, 2010). Therefore, the segmentation of customer and the differentiation of program are considered as the requirements which are used for the purpose of matching the potentiality of revenue with the offerings of the services. Costs and service can be allocated greatly through anticipating the potentiality of higher revenue. Besides the anticipation of the potentiality of higher revenue, greater opportunities are seized by the competitors through providing the better services than other firms where the competitors are also provided the availability of the resources with the greater location and they provide this service to the customers who are higher end (Wilson, 2008).

2.6 The Emergence of CRM Practice:

Sheth and Parvatiyar (1995) suggested that customer relationship expansion is deemed as old perception since pre-industrial epoch. Because of straight relations with the agricultural products’, manufacturer and beside among the customers, the chronological growth of the relationship of the customer is taken place. Customize products are urbanized via artisan for entity customers. This type of unswerving interaction is absorbed in the direction of formation of tie as relation along with the manufacturers and customers. This tie can be made all the way through the mass production announcement on the manufacturing epoch and beside with middlemen initiation through which manufacture and customer relations is formed as less repeatedly , the track which is determined on marketing as business familiarized (Palmer, 2006).

These industrial marketing efforts can be illustrious independently via using the database and marketing tools in a straight line. The result guided to the less important to adopt the previous utility by the creator to urbanize by intermediate. Certain responsibilities are assumed by the customer as per their keenness such as: direct, personal merchandising and related products and service with regard to sustain from manufacturer (Wirtz, 2010).

2.7 Importance of CRM:

Customer relationship management (CRM) refers as the strongest and the most effective approach to maintain and create the relationships with the customers. Customer relationship management (CRM) is not merely considered as the pure business but also appeared as the approach by which it is possible to make personal relation with the people. The business is driven towards the new success level by the advancement of this form of bonding. Considering towards some wider perspective as below it is possible to determine the importance of the system of Customer relationship management (CRM) within an organization (Yagill, 2010). The system of Customer relationship management (CRM) includes of the historical view and evaluation of the all the acquired or being acquired the customers. It assists to reduce finding out and correlation with customer and foreseeing the needs of customers effectively and enhancing the business. Each and every information about customers are contained by Customer relationship management, therefore, it is not so difficult for tracking the customer accordingly and is applied for determining about whether the selected customers are profitable or not. In the system of Customer relationship management (CRM), there can be grouped the customers in accordance with the various aspects in terms of business types done by them or in accordance with the physical location and can be distributed to various customer management referred as the account managers. It assists to focus and concentrate towards the each and every customer respectively (Cheng, 2009).

The system of Customer relationship management (CRM) cannot merely be used for the purpose of dealing with the current customers but can be useful to acquire the new customers. At first, the process is started with the identification of the customer and handling all the corresponding description into the system of Customer relationship management (CRM) that can be called the business opportunity. After that, the representatives of sales and field try to get business out of these customers through following up with them and transferred them into the deal of winning. An integrated system of Customer relationship management (CRM) can easily and effectively do all these (Webster, 2010).

The biggest approach of Customer relationship management (CRM) is that it refers as the very cost effective. The benefit of implementing the system of Customer relationship management (CRM) in decent way is that the company doesn’t need enough paper and also doesn’t need manual work that needs lesser staff for the purpose of managing and small resources for dealing with the customers. There can be used the technologies as cheap and smooth as comparing with the traditional business way to implement the system of Customer relationship management (CRM). There can be kept all description in the system of Customer relationship management (CRM) in centralized way that can be available for anytime on fingertips. The process time is reduced by them and enhancing the productivity. The satisfaction of customer can be increased by the efficiently handling with the customers and meet the needs of the customer effectively. The chance to get more business can be increased by this that can be enhanced the turnover and profit (Smith, 2009).

2.8 Customer satisfaction, loyalty, and business activities

In underlying principle for CRM is that it progresses business rendering via attracting customer satisfaction and lashing up customer loyalty (see figure 1). There is a persuasive logic to the model, which has been hailed as the ‘satisfaction-profit chain’ (Anderson and Mittal, 2000). Satisfaction amplifies for the reason that customer closely consents to the organisations to comprehend their customers well manners, and generates purchaser’s value scheme.

This in revolve manipulates authentic procuring behaviour, which has a momentous blow on business activities.

Customer

Satisfaction

Customer

Loyalty

Business

Performance

Understanding customer requirements

Meet customer expectations

Deliver customer value

Behavioural loyalty

Attitudinal loyalty

Revenue growth

Share of customer

Customer tenure

Figure 1: Customer satisfaction, loyalty, and business activities, (Buttle, 2004).

Customer satisfaction has been the subject of significant research and has been districted and précised in a range of ways (Oliver, 1997)

Customer satisfaction can be defined as the customer to carry out a response through consumer experience or some part of it. Customer satisfaction is an enjoyable exercise response, and discontent is un-pleasurable (Buttle, 2004). Satisfaction and dissatisfaction are the two ends of a single, in cases where the location is defined by the expectations and the results of the comparison. Customers are satisfied with the results, if the service meets expectations. When the quality of service is in surplus of expectations, the service provider has won the pleasure of clients. Discontent occurs when a perceived general quality of service does not meet the expectations of the customer (Looy, Gemmel & Dierdonck, 2003).

Occasionally customer’s expectations are fulfilled, but the customer is not satisfied. This comes about when expectations are little (Buttle, 2005). Customer satisfaction is measured one of the most significant of all marketing activities, market-oriented enterprise results. The palpable need for a corresponding to the client of an investment firm is to extend the business, get a bigger market share and gain replicate business and recommendation, all of which direct to enlarged success (Barsky, 2012).

Studying carried out by Cronin and Taylor (2012) in the services division, such as banking, dry cleaning, pest control, and fast food; established that customer satisfaction has a significant blow on purchase objective in all of these sectors. Likewise, in the health sector, Mc Alexander et al. (2009) originated that customer satisfaction and quality of service for a momentous impact on outlook customer target (Kandampully and Suhartanto, 2008)

Customer loyalty can be classified as "customer behaviour characterized by a positive buying pattern during an extended period (measured by means of repeat purchase, frequency of purchase, wallet share or other indicators) and driven by a positive attitude towards the company and its products or services" (Looy, Gemmel & Dierdonck, 2012).

Identity practitioners and researchers is clearly a theoretical framework, develop customer loyalty factor that could lead to you not identified. Conversely, there is a consensus between professionals and academics, that customer satisfaction and service quality is loyalty among (Gremler and Brown, 2007; Cronin and Taylor, 2012). Loyalty behaviour, including relationships, increase the scope or scale of the continuity of the relationship and recommendations (oral advertising) result from customers from one supplier of beliefs that is greater than the quantity received, so that you can get from other suppliers.

A loyalty to one or more of the forms mentioned above, creates greater profits through enhanced revenue, reduces costs to acquire customers, lower customer price sensitivity and decreased the costs of servicing customers familiar with the company's service delivery system (Reicheld and Sasser, 2010). Customer loyalty can be undo analysis in two ways (Jacoby and Kyner, 2008). The first reviews of loyalty as an advance. Unlike feelings to create a personal attachment to the overall manufactured goods, service or business (Fornier, 2009). These feelings are determined the person's degree of loyalty . The loyalty of the second view is the code of conduct. Loyalty examples of conduct will continue to buy services from the same supplier to increase the scale and scope of the Act, or relationships or recommendation (Yi, 2006).

Loyalty to loyalty conduct view is similar to the meaning of service management literature. In short, there are two dimensions to customer loyalty: behavioural and attitudinal (Julander et al., 2007). Behavioural dimension indicates customer behaviour on repeat purchases, giving priority to a brand or service within a certain period of time (Bowen and Shoemaker, 2008).

The dimension of the approach to them, on the other hand, refers to the customer's intention to repurchase and recommend which are good indicators of the loyal customer (Getty and Thompson, 2004). In addition, the user who intends to repurchase and recommend is very likely to remain with the company. (Kandampully & Suhartanto, 2000 and Hallowell, 2006)

Customer approach, it is difficult to assess the financial and practical purposes, customer retention is widely used as an indicator of customer loyalty. Researchers combined both views in a detailed customer loyalty models. Dick and Basu (2004), moved toward up with a two-dimensional model of customer loyalty to determine the four forms of loyalty, according to the relative importance of attitudinal and repeat purchase behaviour. True loyal is to be the ones who are the great repeat purchase behaviour and a strong relative approach. Spuriously loyal customers tend to be more motivated by impulse, convenience and habit of i.e. if the conditions are right. Latent loyalties affect to those customers who are loyal for the reason that they have no additional alternative. As a final point, there will for all time be some customers who may not be loyal to any particular brand (Deming, 2011).

2.9 CRM and quality of service

Quality of service is necessary for the Organization to live and grow. Interest in the quality of services has resulted in the 2009. Since the topic has attracted attention among scholars and professionals. Quality of service is an approach in the long run, representing, in General, evaluation, which is different from the customer satisfaction, more in the short term, the operation of the specific form of a decision. Customer satisfaction level is a purchaser -service quality, the specific services to deal with perceived quality of service. This means that the customer satisfaction assessments require experience, although the quality is not (Caruana, Money and Berthon, 2000).

2.9.1 Customer’s perception of quality:

The service quality refers to the perception of the customers towards the service quality of an organization. There has the difference between the perceived service quality by the customers and actual delivered service quality. There are experienced the processes by the services where there can be taken place the activities of production and consumption simultaneously (Sower, 2009). Interaction consists of the moments of truth series among the customer and the provider of service. Such interaction among buyer and seller or a critical effect towards the perceived value is having by the service encounters. Christian Gronroos originated the "Nordic Model" where the expectations disconfirmation approach is adopted. It has been claimed this that certain expectations towards the performance of service are having by the customers that can be compared with the actual experience of the customers. If these met the expectations, it can be called the confirmation; while over performed by them it is called positive disconfirmation; while underperformed by them it can be called the negative disconfirmation. In accordance with Gronroos (2004), there has two dimensions of the perceived service quality such as: a technical or outcome dimension and a functional or process-related dimension.

2.9.2 The Perceived Service Quality approach

The service oriented approach has been introduced by Gronroos (2002) in relation to the quality with the theory of perceived service quality and the total perceived service quality model. This approach can be relied on the research into the behaviour of the consumer and the expectations impact in relation to the performance of goods towards the evaluations of post consumption. On the other hand, there is existed the more complicated process of quality perception.

It cannot be the experiences of the dimensions of quality merely by which it is possible for determining whether there can be perceived the quality as effective, neutral or bad. Figure 2 presents that how the activities of traditional marketing can be connected with the experiences of quality resulted to the perceived quality of service. There can be obtained the good perceived quality while the customers’ expectations are met by the experienced quality that is the expected quality. While unrealistic expectations are there, it can be low the total perceived quality in relation to measuring the experienced quality with the objective way being effective (Sower, 2012).

It has been illustrated by figure 2; the expected quality consists of the function of factors such as: marketing communication, word of mouth, image of the company, price, needs and values of customer. Marketing communication consists of advertising, direct mail, promotion of sales, websites; communicate through internet and campaigns of sales. On the other hand, it is not possible to determine the total perceived quality level just only through the technical level and the dimensions of functional quality but instead through the gap among the expected and experienced quality (Polonsky, 2008).

Expected quality

Image

Experienced quality

Total perceived quality

Image

Technical quality:

WHAT

Functional quality:

HOW

Marketing communication

Sales

Image

Word of mouth

Public relations

Customer needs and values

Figure 2: Total Perceived Quality (Gronroos, 2001)

2.9.3 Gaps between customer expectations and perceptions:

A gap among the expected quality of service and perceived service quality is existed there. With the attempt of explaining such kind of gap, a gap model is established by Parasuraman et al (1985) which is applied for using to analyze the quality problems sources and assists the manager for understanding the way of improving the service quality. In figure 3, there is illustrated the model below:

Description: http://www.degromoboy.com/cs/images/gap.gif

Figure 3: The Gaps Model (Source: Parasuraman et al, 2008)

At first, how service can be emerged is demonstrated by the model. In the upper part of the model, there can be included the phenomena in relation to the customers when the lower part consists of the phenomena in relation to the provider of service. The expected service includes of the function of the past experience of the customers and the needs of customers and communication with the way of word of mouth. The activities of the market communication of the organization influenced it. At this model, the service experience can be called as the perceived service refers to the result of the internal decisions and activities series. Decisions in relation to the specifications of service quality can be guided by the customer expectations in terms of management perceptions as adopted through the company while there is occurred the service delivery (Juran, 2009).

The delivery of service and the process of production are experienced by the customer as the quality component of process related and technical solution perceived through the process as the quality component of outcome related. It has been illustrated that perceived service and the expected service can be influenced by the marketing communication. Some steps are demonstrated by this basic model that is needed to consider in the time of service quality analyzing and planning. Inconsistencies result at the process of quality management can create the five discrepancies (also called gap of quality) among the different components of the structure. There are discussed the five gaps in below (Parasuraman et al, 2008):

1. The Management Perception Gap (Gap1):

There can be occurred the gap while the expectations of quality is perceived by the management inaccurately because of wrong information from the research on market and also the analyses of demand, interpreting information wrong way in terms of expectations, analysis of non-existent demand, upward information as bad or non-existent from the interface of the organization among its customer to the management and various layers of organization by which information can be stopped or changed which can be flowing upwards from those who engaged with the contacts of customer directly (Fegenbaum, 2007).

2. The Quality Specification Gap (Gap 2):

It has signified by this gap that there are not consistent the specifications of service quality with the perception of management towards the expectations of quality because of planning wrong or insufficient procedures of planning, bad planning management, unclear goal setting within the organization and poor support to plan the quality of service from the top management. There can be varied the problems of planning related relied towards the first gap size. On the other hand, if sufficient and proper information about the expectation of customer is existed there, still there can be failed the planning of the specification quality with the lacking of real commitment in relation to the top management service quality. There has the highest priority of the commitment, service quality dedication in between the management along with the providers of service in relation to the gap of quality specification (Kanji, 2005).

3. The Service Delivery Gap (Gap 3):

This gap indicates that performance at the production of service and the process of delivery can’t fulfil the specifications of quality because of specifications which is considered as too complicated or more rigid, employees don’t agreed with specifications and hence not met them, specification is not relation with the current corporate culture, service operations with bad management, deficient of internal marketing and also technology and there is not facilitated the performance by systems in accordance with the specifications (Grnoroos, 2008).

4. The Marketing Communication Gap (Gap 4):

There can be occurred this gap while the activities of market communication give promises which would not be reliable with the delivered service because improper integration of the planning of market communication with the operations of service, inadequate coordination among the traditional external marketing and operations, failing of organization for performing in accordance with the specifications, where these specifications are followed by the campaigns of market communication and there is exaggerating the inherent propensity and on the other hand promise fully. the gap of marketing communication can be classified into two divisions such as: external market communication and operation execution and the propensity to over promise by the company at all advertising and the marketing communication (Bitner, 2009).

5. The Perceived Service Quality Gap (Gap 5):

It has been signified by this gap that there is not consistent the perceived or experienced value in relation to the expected service resulted from the quality as negatively confirmed and the problem of quality, bad word of mouth, the bad affect on the image of the company and the business is lost (Welch, 2007). On the other hand, there can be positive of this gap which indicates towards the confirmed quality positively or over quality. While there is occurred the gap of perceived service quality, the reason can be the anything or the mixture of the above things as already discussed. To determine this gap can be the basis to develop the process of service in which it is possible to meet the expectations and experience in consistent way and can enhance the good perceived service quality (Branson, 2009).

Importance of SERVQUAL model:

Most users would agree that a comprehensive and thorough examination of service needs and service quality provides an invaluable approach to improving service quality. SERVQUAL provides detailed information about:

Customer perceptions of service (a benchmark established by your own customers)

Performance levels as perceived by customers

Customer comments and suggestions

Impressions from employees with respect to customers expectations and satisfaction.

SERVQUAL is an empirically derived method that may be used by a services organization to improve service quality. The method involves the development of an understanding of the perceived service needs of target customers. These measured perceptions of service quality for the organization in question, are then compared against an organization that is "excellent". The resulting gap analysis may then be used as a driver for service quality improvement.

Gap model was later improved by creation of SERVQUAL scale for measurement of expectations and perception of service quality that Parasuraman, Zeithaml and Berry developed through a number of research works in the period between 1985 and 1994. Model consists of five dimensions of quality:

• Perceptibility – presence of physical elements;

• Reliability – capability of a promised service to be delivered in a specific manner;

• Responsibility – carefulness, willingness to help and offer a fast service;

• Safety – knowledge and politeness of the employees and their capability to be trusted at;

• Empathy – offer of a personalised service, observing a customer as an individual.

Reasons for GAPS

GAP 1 

· Lack of a marketing orientation

· Inadequate upward communication (from contact staff to management)

· Too many levels of management

GAP 2

· Inadequate commitment to service quality

· Lack of perception of feasibility - 'it cannot be done'

· Inadequate task standardization

· The absence of goal setting

GAP 3

· Role ambiguity and role conflict - unsure of what your responsibility is and how it fits with others

· Poor employee or technology fit - the wrong person or system for the job

· inappropriate supervisory control or lack of perceived control - too much or too little control

· lack of teamwork

GAP 4

·Inadequate horizontal communication - between departments or services

· a propensity to overpromise

2.10 Implementation of CRM in hotel industry:

CRM as a trend in business and business philosophy consists of a series of complex and diverse business resources such as: modern technological resources, information resources, human resources and all other procedural resources which serve to improve services to end user and customer.

Establishing a CRM process is implemented on three levels in Hotel industry:

• The operating level - conducted through the operating functions of the company,

• Analytical level - based on analyzing the behaviour of tourists, the implementation of benchmarking and business intelligence,

• Cooperation and collaborative level – it can be achieved through contact with visitors by phone, e-mail, fax, web, SMS, mail, personal contact).

Implementation of CRM systems is very demanding and requires commitment at all levels of the company. Very big problem is the integration of CRM systems with existing information systems in the enterprise. It is often impossible to implement without the use of qualified personnel and software that has the task of bridging the gulf between the CRM and existing information systems to create an integrated system. For enforcement and implementation of CRM systems in the enterprise, it is necessary at the outset of the project to train staff, improve their skills through training and familiarize them with the introduction of new technology and work organization.

Human resources are the most important factor in the implementation of CRM because they are in direct contact with tourists, and may disclose all of their desires, needs and expectations. Disposal of the necessary information, the company can analyze the thinking and behaviour of tourists and assess the level of satisfaction. Implementation of CRM system requires large financial expenditures, and before deployment, and before selecting a very important decision to make a business plan for the implementation of CRM systems. In order to implement CRM system formed a special team tasked with monitoring and coordinating all activities related to implementation of CRM systems. Implementation Team usually consists of: business sponsors, committee for managing the CRM project, the project owner, and project manager of implementation, technical manager of implementation, integration expert, and head of business department, specialists or managers of information technology, key users, consultants and software suppliers. Key factors for successful implementation of CRM are:

• setting goals that are measurable, achievable, and guided solely with company's business strategy,

• Confirmation of strategic management in setting and achieving goals, in which the executive managers are major providers and responsible persons in the project implementation of CRM,

• Members who participate in the project implementation, and resulting from all company business processes in order to participate in the organization, creating and collecting all useful information on creating new business processes,

• Clearly defined limits with clear partial and measurable indicators and targets, based on which we can clearly conclude the phase in the project implementation,

• provide training and professional development for all staff involved in implementing the new processes and programs.

2.11 CRM at the Radisson Edwardian Hotel :

In recent years, the era of globalization, more and more to increase international market structure. In the business world, new technology adoption by the company and all companies based primarily on customer satisfaction, and provide them with better service quality. Although the hotel through which customers benefit, and to maintain the relationship with their customers to provide appropriate services, then the hotel can gain a competitive advantage, and superior advantages, should be given to customers (Gilbert, 2003) competitors. Because this customer convenience with on-line hotel booking service.

In the hotel industry, it has been shown between the business and other sectors of significant difference. It can be related financial services to win customer's trust, that this is the basis for CRM purposes (Lovelock, 2008). It offers hours of release also support 24-hours customer service support. When customers get the appropriate information and services, facilities, to get the internet and e-booking etc. the hotel can be achieved more and more customer. Existing customer satisfaction should reach the company, because the hotel market in the tourism and hotel between the hotel industries to establish a good reputation. New customers can implement to meet the old. As more and more customers realize the hotel, it is likely to increase profitability (Welch, 2010).

The presented Gap model of service quality represents the right way of identifying inconsistency between perception a company has and perception customers have when the quality of service process is concerned. This model can help management identify reasons of poor service quality in its company and take suitable measures for the improvement of the same.

Research Gap:

Managers know that it is easier to get business from existing customers than to attract entirely new customers. Many firms therefore aim to form deeper and stronger relationships with their customers in order to increase loyalty and repeat purchases. A central concept in this regard is customer relationship management (CRM). However, while previous research shows there are benefits attached to forging closer ties with customers, there are also some costs involved. Yet, very little research has investigated the central question of whether CRM endeavours are an efficient use of a firm's resources. In this paper, the author addresses this gap and investigates the effect of CRM implementation on the cost and technical efficiency of hotels. The research methodology and design will be justified in the following chapter, which will then lead into the actual fieldwork conducted and the findings from that work.