Customer Relationship and Corporate Governance in Sustainability of Business
Vinod Krishna U. Makkimane
Institute of Business Management & Technology
Banashankari 3rd Stage, Bengaluru.
Sustainability is a dynamic concept born out of the environmental debate of the last quarter century. There is growing concern nationally and internationally about biodiversity and protection of plants and animals and community based activity. It is important to view sustainable efforts from global perspective that addresses socio-economic and environmental issues.
Sustainable Development as a norm has been accepted in the literature ever since the publication of the Brundtland Commission ...view middle of the document...
It is very much necessary for any business to last out to fulfill its objectives. Primarily for this “Sustainability” it is very essential for any business entity to give more importance to the “Customer” aspect. My paper tries to explore the customer relationship angle for sustainability of the business and also for the sustainability of environment and natural resources.
Today, for any business “Customer is King”. If you do not have your business strategies and policies centered around the customer, slowly but surely the business will not be sustained over long time. Businesses which have realized this and adopted more customer centric approach of doing business have started reaping benefits within short span of time and are enjoying a better “Brand Recall”. They are taking advantage of the most powerful marketing campaign ever – “word of mouth” advertising.
As per Ford Motors study in 1990s, a dissatisfied customer tells his experience to 22 people as against a satisfied customer who shares it with only 8. In today’s competitive market no business can afford to dissatisfy their customer and then struggle to get their marketing efforts to work.
In today’s situation, any business should adopt a customer centric approach for its organization structure and also customer centric Corporate Governance.
This change in the perception of business enterprises was seen by Mahatma Gandhi during the pre independence days itself.
Fig.1 Customer Centric Organization Structure
Mahatma Gandhi who in a speech in South Africa in 1890 said: "A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption of our work. He is the purpose of it. He is not an outsider of our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us the opportunity to do so."
How to make a business customer centric? The answer is Customer Relationship Management or more popularly known as CRM. Most definitions of CRM focuses on two aspects – relationship and technology. So, it can be defined as “CRM is the information technology face of business processes that aim to establish enduring and mutually beneficial relationships with customers in order to drive customer retention, value, and profitability up”.
CRM can be viewed on four principal ways. Firstly, it is a contemporary response to the emerging climate of unprecedented customer churn, waning brand loyalty and lower profitability. Secondly, CRM is central to the task of making an organization customer-centric. Thirdly, CRM is the surest symbol embracing information technology in business. Fourth and finally, CRM is the most certain way to increase value to the customers and profitability to the practicing organizations. Effective CRM practices can mean the difference between the success and failure of a business across all industries, particularly for small and mid-sized enterprises.
The focus of CRM is to...