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Why Does Customer Relationship Management Exist

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  • AYDIN, Samet

    (Maltepe University)

Abstract

Customer Relationship Management (CRM), which gained rapid traction in the business world during the mid-1990s, soon lost its appeal due to numerous instances of failure, where substantial investments in system implementation failed to deliver the anticipated outcomes. The main reason for these failures was that businesses overly concentrated on the technological tools available at the time and their eagerness to use them while overlooking the core principles of the CRM approach, especially the strategic and human components. CRM is not just a technology; what truly matters are the business processes and human resources that implement them. Technology can only support these two essential components. Today, driven by advancements in information technology, shifts in consumer behavior and expectations due to e-commerce, mobile applications, and social media necessitate the redefinition and restructuring of CRM. In the Information Age, CRM has become indispensable for crafting, implementing, and enhancing value in the relationships between businesses and their customers. This paper discusses the reasons for CRM’s existence and its fundamental philosophy. In addition, it focuses on definitions related to CRM, its historical development, and the various ways in which it is important for businesses and their customers.

Suggested Citation

  • AYDIN, Samet, 2025. "Why Does Customer Relationship Management Exist," SocArXiv j5qaz_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:j5qaz_v1
    DOI: 10.31219/osf.io/j5qaz_v1
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    References listed on IDEAS

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    1. Ashley, Christy & Noble, Stephanie M. & Donthu, Naveen & Lemon, Katherine N., 2011. "Why customers won't relate: Obstacles to relationship marketing engagement," Journal of Business Research, Elsevier, vol. 64(7), pages 749-756, July.
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