Key Stages of CRM:

Customer Relationship Management is seen as a means of identifying, establishing, maintaining, enhancing and where necessary terminating relationships.  The definition anticipates that once the company starts thinking about individual customers, it should recognize that different customers are at different stages of relational development. Importantly, it also implies that each customer types should be handled in a different way. This may include different targeted messages and different ‘value options’ from the exchange. The key stages of CRM are explained through the tabular form:

Sl.No	Stage	State	Culture
1.	Satisfaction Based	Reactive	Meet customer needs Responds to Complaints Minimal evaluation of customer service levels.
2.	Performance based	Proactive	Evaluate customer Perception Identify customer retention factors
3.	Commitment based	Very Proactive	Evaluate multiple customer needs Continuous inbound or outbound flow and feedback Continuous improvement

CRM are mainly of two different types. Reactive serviceis where the customer has a problem and contacts the company. Proactive service is where the manager decides not to wait for the customer to contact the firm, but contacts the customer himself in order to establish a dialogue and solve problems.

Dwyer suggests a five-stage model where each phase represents the following:

1. Awareness:Awareness is where one party recognizes that the other party is a ‘feasible exchange partner’.

2.  Exploration: Exploration refers to the ‘research and trial stage’ in the exchange. This stage includes sub phases such as attraction, communication and bargaining, development and exercise of power and expectation development.

3. Expansion:Expansion refers to the period where there is a continual increase in benefits obtained by exchange partners and they become increasingly interdependent.

4. Commitment: Commitment relates to the implicit or explicit pledge of relational continuity between the parties.

5. Dissolution:Dissolution refers to possibility of withdrawal in any relationship

In defining the scope of E-CRM, three different levels can be distinguished:

1. Foundation services: They include the minimum necessary services such as website effectiveness and responsiveness as well as order fulfillment.

2. Customer –centered services: These include order tracking, product configuration and customization as well as security / trust.

3. Value –added services:  These are additional services such as online auctions and online training and education.

Self services are becoming increasingly important in CRM activities. The rise of Internet and e-crm has boosted the options for self service activities. A critical success factor is the integration of such activities into traditional channels. An example was Ford’s plan to sell cars directly to customers via its website,which provoked an outcry among its dealer network.