Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

Customer Relationship Management (CRM) 
Customer Relationship Management definitions range from theoretical to practical, such as; CRM is a 
philosophy which anticipates customer needs in order to provide the right product, in the right place and at the right 
time. It is an investment in the operating core of a company’s interaction with customers. It is a strategy that aligns 
certain aspects of the business strategy, organizational culture, structure and information technology with customer 
interactions to the long term satisfaction of the customers and to the benefit and profit of the organization. It is a set 
of communication activities between the customer service representatives and the customer.
The goal of Customer Relationship Management is to align customer strategies and business process for 
long term customer loyalty which results in profitability of companies (Rigby, Reichheld, and Schefter, 2002). 
Customer relationship management related customer strategies are tailoring the physical product and service 
delivery process to the needs of customers and the preferences of individual customers. These strategies also include 
developing customized marketing communications at the individual customer level (Haley and Watson, 2002). 
Many hotel organizations implement one or all of these customer strategies. For example: Radisson International 
identifies three components in its customer relationship program which are recognition and personalized service, 
incentives and customized dialogues (Adams, 2001). Rosewood Hotels and Resorts send questionnaires to its guests 
before they arrive and ask their preferences such as pillow type or beverage type in the mini bar (Marsan, 2000). 
CRM became the next big thing when companies realized that the labor intensive process of relationship 
marketing was becoming too costly, and can be improved by utilizing information technology. CRM is an important 
topic in the fields of marketing management, information strategy and business strategy. It reflects a number of 

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