CUSTOMER RELATIONSHIP MANAGEMENT: WHEN THEORY MEETS PRACTICE

Even though the concept of exchange relationships is not new and has been debated for many decades, application of the concept in practice has not been met with success. Consequently, the paper utilises existing literature in order to guide the effective implementation of CRM in service industries. To this end, it is emphasised that a primary reason of the high failure rates is the myopic adoption of CRM technology as a panacea. CRM is a business philosophy and it is suggested that in view of the complex, multifaceted and distinct nature of exchange relationships, it is imperative to undertake prior qualitative research to better understand if relationships are also desired by customers and if so, the nature of the envisaged relationship. Then, in order to ensure that a valued proposition is designed, emphasis shifts to service employees, process re-engineering with the customer as the focus and facilitating technology.