Challenges of Electronic Customer Relationship Management (e-CRM) in Rent-A-Car Sector in Bosnia and Herzegovina

Abstract Customer relationship management (CRM) in both B2C and B2B relationships is of crucial importance for success of modem companies. It is one of the main tools for improvement of relationship with customers, especially in the demanding world of services. Therefore, the electronic customer relationship management system (e-CRM) as upgraded version of CRM represents today not an option but an obligation for efficient and profitable customer relationship management. The use of e-CRM leads to increased profitability through attraction of new and retention of old customers. Thus, understanding the impact CRM and e-CRM have on efficiency of service industry; in particular tourism industry is of crucial importance for companies and managers. The aim of this paper is to provide the theoretical background and present discussions on implementation of CRM and e-CRM system particularly in tourism industry relating it to rent-a-car sector as part of the tourism industry. Furthermore, the paper explores the implementation and impact of e-CRM system in rent-a-car agencies in Bosnia and Herzegovina. This paper provides insight into the level of incorporation of e-CRM in rent-a-car agencies and their everyday business activities. Additionally, it proves that e-CRM leads to increase of profitability through the higher level of customer retention and attraction particularly in those rent-a-car agencies that have recognized the significance of e-CRM and have incorporated it into their business strategies. The paper is backed up with field research through structured personal interviews conducted with major rent-a-car agencies in Bosnia and herzegovina. the research findings indicate that those rent-a-car agencies the have implemented (e)CRM in their everyday business have benefited from it through increased level of customer retention and attraction.