Wednesday, May 6, 2020

Customer Relationship Management Business Organisation

Question: Discuss about theCustomer Relationship Managementfor Business Organisation. Answer: Introduction: Customer Relationship Management System is a tool that describes the link the business has with its customers. It not only involves capturing all quantitative information relating to the customers of the business, but also capturing qualitative aspects of serving those customers. Thus, CRM system first aims to locate and gather the basic information of all the customers. Thereafter those information is used to fulfil the needs of the existing customers and attracting new ones in the process, thereby expanding the market of the business. Concept of CRM: Customer relationship management is a strategy, process and includes technology that business organisation uses to manage their customers and their interaction points. CRM can be perceived as tactics that convert existing customers into loyal customers by not only fulfilling their requirements but also considering their individual choice. It focuses on building customer trust which results in a strong and healthy customer relationship. (Ajmera et al., 2013). How CRM helps firms achieve customer intimacy: Now days, due to the rapid increase in globalisation and internet marketing and sales, the need of customers have become dynamic and uncertain. In such situation, it has become very essential for firms to understand how the need and preference of customers are changing with the options available to them in the market. CRM help firms in assessing such needs by constantly being in touch with them and offering the best possible deals that will enable them retain as their customer (Khodakarami and Chan, 2014). CRM uses the following tools/strategies that enable firms achieve customer intimacy: Developing quality in order to achieve customer satisfaction. Increase marketing strategies to convert regular customers into loyal customers thus improving the bottom line Providing constant help and support, both online and offline enabling in improving efficiency Create business plans that are based on the predictions and analysis of past service and sales trends. Creating central databases that is open for the whole organization to identify customer patterns (Pedronet al. 2016). Automation in sales by online means. Example- self order, e payment etc. Popular tools used under CRM system in organisations. Example- McDonald in the food and beverage industry is one of the example companies that has created huge database i.e. history of customers, their buying pattern, amount and quality of products, etc are maintained. McDonald has maintained customer interaction with the use of customer involvement points. Physical Deployment of Personnel: Under small scale businesses, where the market is located in a particular area most often, the best way to have customer intimacy is through one-to-one interaction. Volunteers and other personnel are deployed to gather information and maintain customer records physically/online, for catering to the needs of the customers ("Comparing CRM systems", 2015,). Web Based Technology based CRM softwares: Under large scale business organisations, the firms use several web based CRM softwares like CiviCRM, Salesforce, etc. to report its CRM activities. These software are mostly custom-made, based on the requirements of the business and act as data mining tools which help the business take accurate decisions on sales, marketing, changing business trends etc (Chien, 2015). Social Media tools like Facebook, Twitter, Linkedinetc. Most popular and easy accessible social media acts as both marketing and CRM tools for all business organisations. Open Platforms to receive customer feedbacks enables them to understand the customers well. CRM and Competitive Advantage: The main reason why CRM was introduced in the business strategies is to attain competitive advantage. As the old saying goes, Customer is the King. This approach makes sure that each customer feels having a centralized relationship with the organisation. A proper CRM gives the firm the chance to know, understand the customers. It helps in identifying their needs, queries and concerns (Chiang, 2012). Example- McDonald has developed marketing policy under which customers interaction is central point. McDonald has developed customer based information system under which customers loyalty points were traced, discounts offers are provided to customers. Advantages of operational CRM are as follows- Automation of sales promotion- It can be analysed that CRM is used attracts more customers by employing CRM strategies. It includes follow up with customers and converts sale lead into actual sale. Service automation- Under CRM system, customer history is maintained so that each and every aspect related to customer can be maintained. For example, maintaining database of customer can be easily reached and can be used in decision making process of business organisation. Case Study CRM by Dominos Pizza, India Dominos Pizza, one of the leading pizza suppliers in the world has used the following CRM practises that has enabled them gain their competitive advantage over others in the market. Operational Perspective: Special offers and regular offers round the clock for all customers Home delivery specialists with 30 min free delivery targets Dominos WOW Club Cost effective pizzas and weekend offers User friendly ordering cancellation process Healthy pizza and low fat and cheese pizzas Feel good ambience, special party and corporate spaces and order intakes Analytical Perspective of CRM Customer relationship management can also be seen as source of data collection or information gathering. As business operation of every business organisation requires decision making so as to solve issues. In order to make correct and intelligent decisions management or managers requires certain information (Tereso and Bernardino, 2011). On the basis of these information decisions can be taken by business organisation. Analytical customer relationship management uses many techniques like data collection, data mining, data storing and other statistical techniques so that data related to customers can be used indecision making process. Customers are lifeline of business entity that can make or break any move of business organisation. Therefore it can be analysed that customer relationship management system can be used for generating useful information for decision making process of business entity (Smith, 2016). For example- Maintaining history (sales, address, items purchased, saving credit card, etc) of customers can be used to make interaction point for customers and try to increase sales. Another example of analytical CRM is to save time of customers by using customer database. Conclusion: A good CRM accurately assesses the relationships with the customers and gives the organization a clear view of what the customers truly want from it. Today, every customer has endless brands to choose from. A business needs to do more than what precisely it is supposed to. This enables the business to make a lasting impression that is valued by the customer. CRM tools make this process easy by providing crisp information that the organization needs to understand and appeal customers. With technology, the number of options available to the company for data mining is unlimited. Information is available in seconds with single clicks. Adoption of detailed CRM Policy, allocating budgets for CRM activities, approving the same at the Board level and quarterly review will ensure every organisation to be in tune with their customer base. References "Comparing CRM systems", 2015, Investment News, vol. 19, no. 37. Ajmera, J., Ahn, H., Nagarajan, M., Verma, A., Contractor, D., Dill, S. Denesuk, M. 2013, "A CRM system for social media: challenges and experiences", ACM, , pp. 49. Chiang, W. 2012, "To establish online shoppers' markets and rules for dynamic CRM systems", Internet Research, vol. 22, no. 5, pp. 613-625. Chien, T.K., Ma, H.Y. Hou, K.L. 2015, "A Study for establishing ideal CRM system function structure", IEEE, , pp. 681. Khodakarami, F. Chan, Y.E. 2014, "Exploring the role of customer relationship management (CRM) systems in customer knowledge creation", Information Management, vol. 51, no. 1, pp. 27-42. Pedron, C.D., Picoto, W.N., Dhillon, G. Caldeira, M. 2016, "Value-focused objectives for CRM system adoption", Industrial Management Data Systems, vol. 116, no. 3, pp. 526-545. Smith, L. 2016, "5 reasons predictive analytics make or break a CRM System", Database and Network Journal, vol. 46, no. 1, pp. 17. Tereso, M. Bernardino, J. 2011, "Open Source CRM Systems for SMEs", International Journal of Managing Information Technology, vol. 3, no. 4, pp. 41-56.

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