The Effects of Customer Relationship Management on Businesses : case company x

Abstract

The aim of thesis was to find out how customer relationship management can be used as a tool to improve a long-term relationship with a company’s customers. The main objective was to determine understanding of customer relationship management, including its history, role, and how it was established and evolved over the course of its decades-long existence. It also covers the types of technology available and how to use them to the company's benefit and strengthen long-term relationships with customers. The commissioning company preferred to stay anonymous, therefore the commissioning company is referred to as Company X in this thesis.

The theoretical framework involves the history and evolution of customer relationship management. The author explains the methodology, the different types of available customer relationship management tools and its implementation. The theories related to customer relationship management such as the IDIC model, Customer Bonds and Ladder of Loyalty were discussed. It allowed for better understanding of customer needs to improve engagements with clients, gain competitive advantage and create strategies that can help Company X to boost sales and improve customer satisfaction. It gave the author understanding of customer relationship management and how it can be implemented as a positive outcome for the commissioning company.

The research was done using a qualitative method, where the focus was on qualitative data. The interviews were done with six employees of Company X during September – October 2024. During the interviews, the author asked questions regarding customer relationship management, the advantages, challenges and importance of customer relationship management for Company X.

The result of the research suggests that Company X can in fact use customer relationship management as a tool for improving relationships with customers and that a customer relationship management system is an effective tool for engaging with customers, tracking important data and collecting feedback which can help to better understand the customer needs and improve trust, loyalty and customer engagement. All the participants gave valuable ideas and suggestions that could help Company X to improve its relationships with customers and enhance customer satisfaction. To conclude, customer relationship management plays a huge role in engaging with customers, advertising services or products and finally in building strong relationships between Company X and their customers.