The Application Of Customer Relationship Management In China And The Study Of Exitent Problems

With the market competition becoming more drastic and information technology developing fast, every corporation is striving to adopt new measurements to keep or gain competitive advantages. Facing the corning of new economy, customers have more choices than ever. Market has changed its character from seller's market to buyer's market, and customers are becoming the focus of the competition among corporations. In the new market environment, the traditional production-oriented, product-oriented, technology-oriented and market-oriented haven't made corporations gain competitive advantages any longer, only the customer-oriented and one-to-one marketing can provide corporations with continual advantages in the drastic market competition.CRM (Customer Relationship Management) is a customer-centric business philosophy, a business strategy and a corporation culture, in which a company focuses its operations on and organizes around attracting, fulfilling and retaining the most valuable customers, and makes customer relationships the best position. It concentrates on promoting the overall relationship between corporations and customers with the best way, and maximizing the customer lifetime value. But as a new management theory, CRM brings too many problems in its applications. Present statistical reports show that the failure rate of CRM applications is up to 75 percent.Because of historical reasons, such as unsound information infrastructures, low individual quality and backward way of thinking; it brings more resistance and higher failure rate in China than in other countries when applying CRM. Based on this background, this paper draws a conclusion on practices of CRM applications in China, and analyzes existent problems from the point of view of transforming of corporation culture, business process reengineering (BPR), changing of organization structure, knowledge management and customer privacy. On the basis of these, the paper proposes some solutions of CRM application in China, hi the end, the paper analyzes CRM application in the banking industry as an example.