A Day at Works

From customer perspective, quality is the ability of the product to fulfill its promise to solve customer’s problem. From company perspective, high quality reduces (potential) cost. Low quality yield for additional cost, high quality input, process and output do not.
When quality product or when delivery met expectation then customer will be satisfied but satisfied customer does not always come back for repurchase and spreading good word-of-mouth. This reality broke the Service Profit Chain concept.
Satisfied customer actually indifferent in his/her attitude toward the product, thus in this stage customer service initiative generally is fruitless, even increasing customer expectation or hygiene factors. Then company should aware that customer service initiative sometimes is a long and hard decision. In macro level this decision is similar to phenomenon that increasing production capacity or go to capital intensive will eventually produce less profit for the whole industry.
CRM concept as a verbose has many definitions, but simply it is an initiative to identify, keep, and develop profitable and loyal customers. CRM is advancement of CS, it ensure that customer service activities directed to the right customer, that is: who can be loyal to company as well as provide profits in the long-term relationship. CRM then make sure company effort will keep desired customer from churning, and develop this customer in term of involvement, trust and commitment (3 basic elements of attitudinal loyalty) and behavior (transaction: referral and repurchase; form of repurchase: buying the same product, other group of product or cross-selling, and buying higher margin product or up-selling).

Thus when company wants to calculate accountability of CS activities such as B’day greetings, executive lounge or simply extra discount then company should move to CRM.