Customer Relationship ManagementEssay Preview: Customer Relationship ManagementReport this essayTechnology has helped fuel the growth of CRM strategies. The evolution of CRM is moving forward with e – business evolutions. eCRM is the new strategy of customer relationship management in the Internet era. This paper addresses the basics of CRM and what is eCRM, explains the relationship between technology and eCRM and introduces the 4 principles of eCRM.
IntroductionThe growing waves of merger and acquisition in the international business arena, coupled with broader use of e — technologies, have contributed to increase in the scale of business relationships and also to exponential increase in customer data. It is obvious that who is able to use the data pro — actively, can make a dramatic difference. To exploit business opportunities, more and more companies are rapidly implementing integrated Customer Relationship Management (CRM) systems to make their business processes more customer — focused.
CRM is nothing but the evolution of the business processes. Moreover the definition of CRM will evolve and change over time. It will encompass new components with economy development.
Basics of Customer Relationship Management (CRM)Defining CRMCRM stands for Customer Relationship Management. It has been defined in a variety of different ways. For some, CRM is a way to identify, acquire, and retain customers. For others, it is a way of automating the front office functions of sales, marketing, and customer service. For some vendors, whatever their current product may be, that is CRM.
This diversity of definitions is a result of differences in perspectives. The first is based on a business perspective of increasing competition that is driving companies to focus on their customers. The second is based on the relatively new phenomenon of the integration of previously separate applications such as Sales Force Automation and Customer Service Support into Enterprise Applications. The third is a result of software vendors repositioning their information technology products and services under the CRM umbrella, to take advantage of the fast growth of the CRM market.
What is CRM? “CRM is a comprehensive approach which provides seamless integration of every area of business that touches the customer — namely marketing, sales, customer service and field support — through the integration of people, process and technology, taking advantage of the revolutionary impact of the information technology. CRM creates a mutually beneficial relationship with your customers. It is fundamentally cross-functional, customer — focused business strategy”(Fulk& Whang, 2000).
CRM is in fact about creating value for customers. (Cash, 1999) CRM itself is not a technology, even though technology is required to enable CRM. Technology makes it possible to integrate the large volumes of customer information that are required for CRM, and to efficiently transform this information into useful knowledge. Technology also enables a company to interact with its customers in ways that provide value to the customer, as well as makes it easier for the customer to do business with them. However, leveraging this customer knowledge to make better business decisions and to be responsive to customers remains the responsibility of individual managers and workers at all levels within the company.
The CRM and Value chain
The value store chain is a place where employees (sometimes including consultants) perform research, create and deliver a product, help customers find and purchase their own products and services, and contribute to corporate culture, social responsibility and culture of service, as well as build an innovative business. Its goal is to improve the quality of life and the lives of its employees. In addition to making business decisions, the value chain helps to shape business processes, including creating jobs that are culturally meaningful. By taking these steps, employees share the values they share with customers, encourage the culture of collaboration and the company to build on its strengths as a company. At the core of this process is the importance of providing the customer with products and services that they are attracted to. The value chain also provides the right opportunity to collaborate to achieve social and cultural changes in a company. This enables both the individual managers and workers at the same or the company to make business decisions directly, without the employees having to work alone at a time.
Although the value chain is an open and inclusive field, it has its limitations. In some places there are no managers who have full say in a field that is open to the general public. Other settings are limited to the top offices responsible for managing the activities of the values of individual staff and managers. Management also may not be able to share responsibility for a product or service to the best of their knowledge, and it is important that the employees participate in a culture conducive to collaboration, and the management team is open to participating (and challenging) in a wide variety of other aspects.
The value chain also has a number of limitations. It relies on many industries but no one is going to have full control over each industry. The value chain is also not transparent to the management team. If a value manager has to give the impression that his office or company is only for employees and not for customers it may be a good move if there is a risk that the employee will get promoted. The only way to address problems that such an idea might cause is by creating a culture of transparency with the managers and managers involved. Once managers and managers have that knowledge they can work with the value chain in other ways, but those who do not share it and those who do not have it will be left to guess who they should be working with. The value chain also imposes a lot of complexity on the value chain — if a value manager does not have full knowledge at the time of a request his own company requests that he should be allowed to speak more freely on a topic and is allowed to speak at other firms’ events but that doesn’t constitute the same legal right as his own company’s right to disclose all its content (and not just share that data publicly, as was promised in the case of CVC, although this was eventually overturned by the Court of Appeals,
The CRM and Value chain
The value store chain is a place where employees (sometimes including consultants) perform research, create and deliver a product, help customers find and purchase their own products and services, and contribute to corporate culture, social responsibility and culture of service, as well as build an innovative business. Its goal is to improve the quality of life and the lives of its employees. In addition to making business decisions, the value chain helps to shape business processes, including creating jobs that are culturally meaningful. By taking these steps, employees share the values they share with customers, encourage the culture of collaboration and the company to build on its strengths as a company. At the core of this process is the importance of providing the customer with products and services that they are attracted to. The value chain also provides the right opportunity to collaborate to achieve social and cultural changes in a company. This enables both the individual managers and workers at the same or the company to make business decisions directly, without the employees having to work alone at a time.
Although the value chain is an open and inclusive field, it has its limitations. In some places there are no managers who have full say in a field that is open to the general public. Other settings are limited to the top offices responsible for managing the activities of the values of individual staff and managers. Management also may not be able to share responsibility for a product or service to the best of their knowledge, and it is important that the employees participate in a culture conducive to collaboration, and the management team is open to participating (and challenging) in a wide variety of other aspects.
The value chain also has a number of limitations. It relies on many industries but no one is going to have full control over each industry. The value chain is also not transparent to the management team. If a value manager has to give the impression that his office or company is only for employees and not for customers it may be a good move if there is a risk that the employee will get promoted. The only way to address problems that such an idea might cause is by creating a culture of transparency with the managers and managers involved. Once managers and managers have that knowledge they can work with the value chain in other ways, but those who do not share it and those who do not have it will be left to guess who they should be working with. The value chain also imposes a lot of complexity on the value chain — if a value manager does not have full knowledge at the time of a request his own company requests that he should be allowed to speak more freely on a topic and is allowed to speak at other firms’ events but that doesn’t constitute the same legal right as his own company’s right to disclose all its content (and not just share that data publicly, as was promised in the case of CVC, although this was eventually overturned by the Court of Appeals,
Components of CRMAPPLICATIONCustomer acquisitionSFA (sales — force automation) and marketingCustomer retentionData warehousing and analytical tools; customer service: call center and contact centerIncreasing customer valueMarketing automation and campaign management for cross — selling and up — selling; data warehousing and analytical tools(Leon, 2001)CRM in the Internet EraCustomer relationships become even more important in todays Internet marketplace. The Internet has enabled a dramatic reduction in the cost of transactions and interactions among people and businesses, which in return has created a new set of expectations among customers. (Norris, 2000) Online customers expect shorter sales cycles, personalized information, quicker resolution of service issues, and added value at each stage of the transaction. To maintain positive customer relationships, business needs to meet and exceed these expectations.
CRM, therefore, must be a well — integrated effort, using the Internet to shorten time and distance across the supply chain and to customers, creating new levels of speed and efficiency in business. Companies that do this successfully will be those that adopt CRM as a philosophy and way of doing business, rather than just as a technology that automates pieces of their business. Within Dell, for example, about 75 percent of order status transactions, and almost 50 percent of sales are enabled by the Web.
Dell is moving these transactions online because customers told us they want faster, more efficient support for routine interactions. Over the phone, these transactions cost between $3 and $10 each, but the Internet lowers the cost to zero in most cases. (www.dell.com) More importantly, the entire process is more efficient for customers and enables Dell to extend cost savings to them, resulting in winners all the way around.
Research shows that a positive customer experience drives more e — loyalty than traditional attributes like product selection or price, in traditional channels, you can lose customers if they walk into a physical location and are disappointed in the store appearance, have an unsatisfactory experience with a salesperson, or cant find what they want. (Halal, 2000) The Internet environment is no different: You must not only excel in your market but do so in a convenient, helpful, and reliable website.
The ultimate goal is to deepen relationships by adding convenience, efficiency, cost savings, and a wider array of services. Doing business online is about more than processing Web — based transactions. It is about using the Internet to develop, maintain and manage positive relationships with customers, partners, and suppliers. The result is long — term relationships, repeat sales, business efficiency, and increased profitability. Companies that put a strategic focus on customers and leverage the capabilities of the Internet to enhance those relationships will survive and thrive in the Internet Marketplace.
Technology