MacroEnvironment - Customer Relationship Management & Competitive Advantage

Explain how Customer Relationship Management could be used to gain a competitive advantage?

Ans:

Customer relationship management is used to establish and maintain high standards of customer service. Known as CRM and introduced in the chapter-opening example of Salesforce.com, this approach uses the latest information technologies to maintain intense communication with customers as well as to gather and utilize data regarding their needs and desires. At Marriott International, for example, CRM is supported by special customer management software that tracks information on customer preferences. When you check in to a Marriott hotel, your past requests for things like a king-size bed, no smoking room, and Internet access are likely already in your record. Says Marriott’s chairman: “It’s a big competitive advantage.”

Source: Management, 11th Edition - John R. Schermerhorn