Lecture 2 Customer Relationship Management

CRM systems help organizations improve customer relationships and profitability through personalized interactions. They aim to enhance customer service and satisfaction to increase retention. Benefits include higher revenues from retaining existing customers and opportunities for cross-selling and up-selling. However, implementing CRM systems involves significant costs to organizations for new technologies and process changes. While CRM provides benefits like simpler buying and personalized attention, costs to customers include loss of privacy and reduced opportunities to consider other companies' offers.