CRM capability and CRM profitability
CRM aims to develop CRM capabilities that help organizations an increased
return on investment. CRM capabilities were reflected in CRM activities and
processes that includes sufficient technical, human, and business related capabilities
(Barney 1991; Marchand et al. 2000). CRM capabilities are the series of activities
such as customer identification, customer acquisition, customer retention,
cross-selling, up-selling and re-establishing relationship with customer (Reineartz et
al., 2004; Parvatiyar and Sheth, 2001).Wang and Feng (2012) sorted CRM capabilities
as a three-dimensional construct that include customer interaction management
capability, customer relationship upgrading capability and customer win-back
capability. The role of CRM includes acquisition of new customers and enhancement
of occupancy and revenue from existing customers (Roh, Ahn, & Han 2005; Tiwana
2001). CRM implementation will increase the customer satisfaction and loyalty by
understanding a company’s customers (Winer 2001).