Theoretical Framework for CRM Outsourcing

Customer service is emerging as a key differentiator among competitors as the explosive growth of e-commerce is changing the nature of competition among companies. This has changed the customer-related business requirements for all types of companies. With firms increasing their online operations, customers now have the ability to contact organizations through a variety of interactive and noninteractive means (such as e-mail, fax, call centers, FAQs, online chats, newsletters, snail mail, retail stores, and Web-based forums). This has led companies to consider customer relationship management (CRM) as an important part of their competitive strategy. As the focus is shifting to retention rather than acquisition of customers, companies are looking for ways to identify and engage their most profitable customers.