Introducing CRM concept and accompanying organizational change in public company as a possibility for improving satisfaction of residents

Abstract

One stage in development of marketing as a business function was the introduction of customer relationship management (CRM) concept. Organizations recognized the potential for generating additional value and competitive advantage by moving their orientation from products and services towards customers. Directions for improvement derived from the environment became as significant as those designed internally, by organization itself. Public companies also became aware of the influence of customer satisfaction on business performance and financial results. CRM idea was adopted worldwide by government representatives, who realized that the best value in public service delivery can be achieved by focusing on the needs of customers, or in this case residents. However, although the benefits which this concept can provide in public enterprises were emphasized by many researchers, its implication on public service is still far from reaching its full potential, particularly in developing and underdeveloped countries. Nevertheless, the use of customer orientation idea in public companies remains to be widely spread and it should represent the guideline for local authorities in such countries. It is not necessary for public companies to buy expensive CRM applications in order to improve customer satisfaction and customer knowledge. In the beginning they can use the data stored in their current information system database for establishing CRM principles in their business, with only minor adoptions. In this way certain benefits can be achieved without implementing radical organizational change. This paper aims to propose a possible solution for adopting CRM concept and improving customer satisfaction in public company which is providing parking service in capital of one developing country from Europe.