Performance in Service Marketing from Philosophy to Customer Relationship Management

Abstract

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 establishing and maintaining long-term relationship, 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, 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.