Performance in Service Marketing from Philosophy to Customer Relationship Management

The contribution of services to the development of every national economy is in the progress, they becoming the major contributor to the gross national product of most countries. In their turn, the customers become more demanding and powerful in their relationship with service providers. They ask for more and new relationship. The appropriate new marketing, known as Relationship Marketing, looks to engage the customer interactively in the many steps of creating value which is later shared between service provider and customer. This requires to focus on long-term customer relationship. In order to establish and maintain long-term relationship, the relationship marketing should understand customer expectations, know the customers, evaluate services process, obtain a proper service quality and adequately manage customers’ relationships. The service customer’s is placed on an expectation range to a five dimension scale and have two levels which may be analyzed into a model of service. A stimulus for relationship marketing performance may be the quality of service. The objective and subjective quality of service is essential for the service customer relationship management. In order to reach the goal of retaining actual customers, service companies should be prepared to spot customers who leave and then analyze and act on information they provide. Managers should make sure the entire organization understand the importance of keeping customers and encourage employees to pursue zero defections by trying incentives, planning, and budgeting to defections targets. Most important, managers use defections as a vehicle for continuously improving the quality and value of the service they provide to customer.