20-08-2014, 12:24 PM
Strategies for successful CRM
implementation
Strategies.pdf (Size: 94.82 KB / Downloads: 10)
Abstract
Purpose – Customer relationship management (CRM) is an information system that tracks
customers’ interactions with the firm and allows employees to instantly pull up information about the
customers such as past sales, service records, outstanding records and unresolved problem calls.
This paper aims to put forward strategies for successful implementation of CRM and discusses
barriers to CRM in e-business and m-business.
Design/methodology/approach – The paper combines narrative with argument and analysis.
Findings – CRM stores all information about its customers in a database and uses this data to
coordinate sales, marketing, and customer service departments so as to work together smoothly to best
serve their customers’ needs.
Originality/value – The paper demonstrates how CRM, if used properly, could enhance a
company’s ability to achieve the ultimate goal of retaining customers and gain strategic advantage
over its competitors.
Keywords Competitive advantage, Relationship marketing, Customers
Paper type Research paper
Introduction
Today, in the business world, management recognizes that customers are the core of a
business and that a company’s success depends on effectively managing relationships
with them. As a result, one of the first goals that management has its employees
achieve is based on a maxim such as “the customers are always right,” “do whatever it
takes to deliver your promise” or something similar. All objectives are focused to one
ultimate goal that is to make customers happy because they are the ones who keep the
business running. Not too long ago, many companies did not consider this an
important factor and often ignored their customers with the result that many of these
customers did not come back. Often, these objectives become constraints for businesses
and their employees when they do not have appropriate tools, equipment, or methods
to achieve this goal. Today, technology provides businesses with systems that can help
companies track customers’ interactions with the firms and allow the firms’ employees
to quickly retrieve all information about the customers. This concept is called a
customer relationship management (CRM) system and if used properly, could enhance
a company’s ability to achieve the ultimate goal of retaining customers and so gain a
strategic advantage over its competitors.
CRM can be interpreted as a process of
2. CRM in business
CRM is an information system that tracks customers’ interactions with the firm and
allows employees to instantly pull up information about the customers such as past
and current sales and/or service records, outstanding records or unresolved problem
calls.
A CRM system stores all information about its customers in a database. Information
such as customer names, what they bought, and what problems they have had with
their purchases, is retained in the CRM database. The system not only uses this data to
generate simple reports but can produce critical information to help coordinate sales,
marketing, and customer service departments to better and faster serve customers’
needs.
Strategies for implementing CRM
Before deciding on investing in new CRM programs, Ramsey (2003) suggests critical
strategies that organizations need to be aware of. These strategies include:
Customer. One of the most important strategies is to identify the target customers
based on the existing business model and corporate mission. This means that before
deciding on implementing CRM, organizations must get a better handle on the types
of customers they should be serving. In addition, they must identify the types of
interactions with each segment that will generate the greatest loyalty among customers
and the most profit for the business. One way of identifying the target customers is the use
of models of customer-centricity. Customer centricity is customer segment management,
which is a process of segmenting groups of customers based on similar attributes and
managing those segments in a way that maximizes both the benefits to customers and the
long-term profit potential of the organization. A typical customer segment management
model would consist of several stages called the continuum. These stages include:
8. Conclusion
CRM system is not “just another information tool.” If applied properly, CRM programs
can contribute exceptional economic value to the company as well as competitive
advantage. Implementing CRM systems can enhance an organization’s ability to
improve customer service, which in turn can generate revenue. However, not all
organizations who implement CRM have been successful. In order to have a successful
implementation of CRM, organizations should evaluate how CRM fits into their overall
business strategy, evaluate its current CRM capabilities, and have a business reason
for implementing CRM. They should then create a plan and execute it. In conjunction,
organizations should also look into CRM in m-commerce or m-business. This is new in
both B2B and B2 C so it needs lots of research and investment. The future of CRM
m-commerce provides plenty of opportunities for both businesses and consumers.
The next level of CRM could be “untethered-commerce” u-commerce “untethered” by
the hard wires of traditional computers and telephones, “unbounded” by traditional
definitions of commerce, and “ubiquitous” in that business can take place anywhere
and at anytime