Customer Relationship Management (CRM) - avb4you.info
implementation and operation of CRM systems in business. This paper . data and information about customers that will be used for . A CRM system facilitate. CRM - principles, strategy, solutions, applications, systems, software, and CRM software solutions and ICT (information and communications Customer Relationship Management, or CRM, is an essential part of modern business management. . The communication system must also encourage and facilitate honest and. This system can be brought into effect with software that facilitates collecting, organizing, and managing customer information. Implementing a CRM strategy is .
If it's new to you, here's why most forward-thinking organizations devote lot of energy and resources to the set up and management of a CRM capability. CRM can have a major impact on an organization through: In the case of CRM this is achieved mainly by providing a better service to your customers than your competitors. CRM not only improves the service to customers though; a good CRM capability will also reduce costs, wastage, and complaints although you may see some increase initially, simply because you hear about things that without CRM would have stayed hidden.
Effective CRM also reduces staff stress, because attrition - a major cause of stress - reduces as services and relationships improve. CRM enables instant market research as well: Good CRM also helps you grow your business: Features The old viewpoint in industry was: What do customers want? Most obviously, and this is the extent of many suppliers' perceptions, customers want cost-effective products or services that deliver required benefits to them.
Customer Relationship Management
Benefits are what the products or services do for the customers. Note that any single product or service can deliver different benefits to different customers. It's important to look at things from the customer's perspective even at this level.
More significantly however, customers want to have their needs satisfied. Customers' needs are distinctly different to and far broader than a product or service, and the features and benefits encompassed. Modern CRM theory refers to the idea of 'integrating the customer'. This new way of looking at the business involves integrating the customer more precisely the customer's relevant people and processes into all aspects of the supplier's business, and vice versa.
Customer Service System Customer service refers to various business practices aimed at providing services to clients during and after a business transaction. These services are aimed at building customer satisfaction and retention. Customer service system refers to blending of procedures, people and technology with a view of serving customer needs in a way that will promote profitability and achievement of business objectives. It is important to note that implementation of an effective client service system may be quite difficult when all the stake holders does not understand its importance.
Role of Information System in Customer Relationship Management Essay Example for Free
In addition, all the stake holders should be willing to buy into using the system otherwise its contribution to the business may be futile. There are numerous reasons why organizations need to buy into the use of a client service system.
Such a system further promotes customer loyalty hence more profits owing to their high life time value in the business. A long life time value of a customer promotes profitability in an organization since the business will not seek to secure new customers but instead will focus their attention and resources towards further expansion of the business using the current customers. Implementation of an effective customer service system will help solve communication of bad experiences by discontented customers to potential and existing customers.
Such a system helps an organization to quickly adapt to global changes in the corporate world. A client system provides valuable information about these competitors.
These demands should be addressed adequately through proper coordination among various departments. This is only possible with the use of a common client service system. The process seeks to devise managerial methods to curb existing and potential competition.
It is management tool that helps an organization focus its energy by making sure that all parties and shareholders are geared towards achievement of goals and objectives set for the company. It further assists an organization adjust accordingly with the changing corporate environment.
This is meant to guide and shape the way in which organizations do its operations. The method devised depends on the size and nature of the organization. For instance, a transnational organizations need to implement a more structured strategic model owing to its size, scope and stakeholder operations and requirements. On the other hand, Small and Medium Enterprises may choose to incorporate capitalist approach to strategic management.
This is because of their small sizes, scope of operations and number of activities to be processed. General approaches that can be used include classical, evolutionary and systematic. Strategic management involves analysis of problems in an organizational environment, decision making and acting based on findings with a view of creating and sustaining competitive advantages. Strategic management therefore entails analysis of organizational goals made up of vision, mission and objectives.
Customer Relationship Management
Based on strategic management, organizations need to identify competitors in the market segment and choose the most appropriate mode of responding to their completion. The decisions may affect the internal as well as international operations of an organization. The decisions put forth must be acted upon otherwise they are of no use formulating them. It is therefore a requirement for organizations to implement the decisions in a manner that will foster profitability in an organization.
In order to gain success in implementation of strategies formulated, it is important to perform SWOT Analysis of the entire organization. The analysis will help the executive to identify Strengths, Weaknesses, Opportunities and Threats from which decisions will be made. The management should allocate enough resources for this purpose and modify proposed changes into reality.
Role of Information System in Customer Relationship Management Essay
It is all about designing ways through which sustainable competitive advantage can be created and sustained over a long period of time. In this regard, firms should create competitive advantages in the market place that are unique, valuable and difficult for rival companies to copy. Sustainable competitive advantages should be sough through effectiveness and quality service.
This can be done well by doing same things as rival companies but in a better manner geared towards customer satisfaction and retention. It is all about doing different things or activities using different ways and in a manner that does not resemble the way competitors in the market perform.