Abstract
Customer relationship management is a key component in any business organization. In this present age, the use of digital media has been shown to improve customer relationship management in many ways. This study discusses the many benefits of digitalizing customer relationship management.
Introduction
Customer relationship management (CRM) [1, 2] is commonly encountered in virtually all industries. Based on the fact that customer relationship gives competitive advantage [3], the objective of CRM is to build and maintain customer relationships by encompassing the sales, marketing, and customer service activities. In order to build and sustain long-term relationships with customers, organizations should provide differentiated relationship value and communicate continuously and consistently with each of their customers [4]. To achieve this aim, digital resources such as the Internet and mobile phones, are considered potent channels to reach customers because they allow personalization and interactivity of the content and the context of the message [5, 6].
In addition, digital resources are seen to create unique and positive experiences to customers by mixing aspects of products, service, brand, and communication – not just transactions [7], and enabling companies to develop interactive and relationship-building contacts with their potential and current customers [8]. Despite the potentials of digital channels, only the Internet as a channel to manage customer relationships (eCRM) has attracted a lot of attention [9-11], whereas understanding of managing customer relationships through the mobile medium has gained far less attention [12].
Generally, the possibilities created by the mobile medium have led to a situation whereby many organizations and industries have started utilizing mobile medium to promote CRM activities. By utilizing mobile medium, companies aspire at advance activities with the customer in the sense of saving time, cost and inconvenience. For example, Finland’s national airline, Finnair, is the first company in the world to adopt a mobile phone service for their loyal customers that enables passengers to check-in ahead of time for flights using short message service (SMS). By using this service, passengers can go directly to the departure gate without the hassle of waiting in the check-in line. The advantage for the customer is, in addition to saving time and being easy to use, that the details of a flight are automatically stored on the mobile phone and are accessible whenever needed.
This study highlights the importance of customer relationship management using the digital media.