...opportunity to build better relationships with customers than has been previously possible in the offline world. By combining the abilities to respond directly to customer requests and to provide the customer with a highly interactive, customized experience, companies have a greater ability today to establish, nurture, and sustain long-term customer relationships than ever before. The ultimate goal is to transform these relationships into greater profitability by increasing repeat purchase rates and reducing customer acquisition costs. Indeed, this revolution in customer relationship management or CRM1 as it is called, has been referred to as the new “mantra” of marketing. The need to better understand customer behavior and focus on those customers who can deliver long-term profits has changed how marketers view the world. Customer Relationship Management is an innovative approach undertaken by the marketers in the process of developing lifetime customers and maximizing lifetime value of the customers. CRM approach is still new for the corporate managers, as in India the customers are still at the receiving end only. The concept of CRM and its implementation creates chaos for the marketers, as they are unable to comprehend the benefits of this approach to enhance their relationships with their customers and ultimately gain the long-term profitability profit. History of CRM Before the introduction of CRM systems, customers would buy from a company...
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...Customer Relationship Management Holly Smith August 16, 2011 Introduction Customer acquisition and retention have become essential in a highly competitive global market where advanced technological and web-based tools and applications are used to lure new customers as the old marketing strategy of quality goods at low cost has become redundant and the focus is on customer centric marketing and product development. Customer Relationship Management (CRM) has been defined as, “a cross functional, customer-driven and technology-integrated business process management strategy that maximizes relationships” Chen and Popovich (as cited in Parsongsukan,2010, p.17). The successful implementation of a CRM strategy requires organisational transformation, changing business processes and only then can CRM implementation achieve the desired results and CRM vision. CRM implementation cannot be restricted to software and technological upgradation for enhancing customer database management. CRM is an integrated approach that requires organisation and business process transformation for effective implementation. History of CRM The evolution of CRM started from mass marketing when companies’ mass- produced goods and services believing that customers had similar needs and preferences. This trend gave way to target marketing where marketing campaigns were used to target goods and services to different strata’s of consumer segments...
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...to decide whether they should buy this product or not, it is not enough for firms to maintain the buying of customers and also compete with their competitors. In fact, there are too many businesses in a market that customer can choose to purchase any products, but consumers’ psychology always want to come back a firm, which makes them to feel happy. As a result, a major task for firm is how to make consumer feel satisfy and continue use their products or services. To gain the success, companies need to have a positive relationship with their customers. Thus, firms have invested a lot of time and costs to develop their interaction with customers before, during and after purchasing because this will help businesses to maximize their profits. In addition, due to the development of information technology, customer relationship management has assisted effectively for companies to achieve several major benefits. Indeed, customer relationship management is extremely important to support firms that not only to understand deeply all customers’ needs but also to give effective strategies on time to take the consumers’ satisfaction and loyalty. Therefore, this essay will attempt to explain the importance of customer relationship management in B2B marketing that can give firms a significant competitive advantage. There are several definitions about Customer Relationship Management (CRM), but some people have many mis-understanding such as database marketing, marketing process, loyalty schemes...
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...Customer relationship management (CRM) is a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.[1] The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.[2] Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.[3] Measuring and valuing customer relationships is critical to implementing this strategy.[4] Benefits of CRM A CRM system may be chosen because it is thought to provide the following advantages:[citation needed] Quality and efficiency Decrease in overall costs Decision support Enterprise agility Customer Attention [edit] Challenges Successful development, implementation, use and support of customer relationship management systems can provide a significant advantage to the user, but often, there are obstacles that obstruct the user from using the system to its full potential. Instances of a CRM attempting to contain a large, complex group of data can become cumbersome and difficult to understand for an ill-trained user. Additionally, an interface...
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...Customer Relationship Management Customer relationship management (CRM) technology is becoming more and more prevalent is the workforce nowadays, especially in determining how many sales you were able to make and also customer’s feedback as well as interaction. Generally, CRM is a model that is implemented to manage a company’s interactions with customers, client, and also the sales prospects. By applying the CRM technology, it can help your sales team to organize, automate and synchronize the business processes that would be able to help in finding, attracting and winning the hearts of new and potential clients, in the same time also retaining those loyal customers that you already have. The relevance of using the CRM technology in conjunction with sales may not be recognize immediately to some, but in the long term, there is a certain benefits that will certainly bring a boost to your business. 1. CRM increases the productivity of the sales team As mention, the utilization of CRM is able to provide a huge boost to the sales team. CRM is able to streamline one’s process by making the pricing, order processing and other sales tasks that are completely automated. By adopting the CRM technology, it will give your sales team a competitive advantage by reducing your production costs, increasing the sales revenue and also the market share. 2. Able to build a stronger customer relationships As a sales team, what matter most is to build a strong relationship with your...
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...Customer Relationship Management 1. Introduction In a world where the customer is always the king, more and more companies are going an extra mile to get to know the customers and make them feel happy. Customers want more than just courtesy of the person serving them, they want the sales representatives and the company to know them, recognize them and understand them. Here, the word "relationship" comes into place. Customers want a business relationship with the company where they can be appreciated and respected. Hence, customer relationship management, or CRM, is fast becoming one of the major elements of corporate strategies in many organizations. Already, companies such as Hong Leong Finance and UOB are pouring in millions of money into IT initiatives that will see the deployment of new servers and a CRM system. These IT initiatives are aimed at enhancing the workflow processes thereby saving time and money in the long run. 2. Definition of CRM 2.1 CRM is a strategy Customer Relationship Management (CRM), is strategic approach that combines the business processes, technology, employees, and information across an enterprise to attract and retain profitable customers. In simpler terms, CRM means putting customers at the heart of the business. 2.2 CRM is an information system CRM focuses on the retention of customers by collecting all data from every interaction, every customer makes with a company from 'all' touch or access points whether they are phone, mail...
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...countries.The research objective involves describing how the selected bank is deploying the CRM Best Practices toward building relationships with their retail customers. The case study method is the recommended research method in such situations when we deliberately want to cover the contextual conditions because they may be highly pertinent to the phenomenon of study. The study identifies 29 CRM Best Practices after extensive literature review. There are six sources of evidence that can be used for triangulation of data. The current study uses only two to three sources of evidence and as a result the construct validity of the case study research is affected. Though several research papers have been published in the area of CRM practices, no publication was found, across the countries, in connection to CRM Best Practices. Introduction RM has been a part of marketing literature since more than a decade. Interestingly, there is still much debate over what exactly constitutes CRM (Sin et al., 2005). According to Parvatiyar and Sheth (2001), some of the themes represent a narrow functional marketing perspective while others offer a perspective that is broad and paradigmatic in approach and orientation. One example of a narrow perspective is to view CRM as database marketing (Peppers and Rogers, 1995) emphasizing promotional aspects of marketing by leveraging customer databases. Other examples of a narrow approach include electronic marketing (Blattberg and Deighton, 1991 as cited in Sin...
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...IMPROVING CUSTOMER RELATIONSHIP MANAGEMENT IN HOTEL INDUSTRY BY DATA MINING TECHNIQUES MIRELA DANUBIANU, VALENTIN CRISTIAN HAPENCIUC Mirela DANUBIANU, Lecturer Ph. D. Eng, Ec. “Stefan cel Mare” University of Suceava Valentin Cristian HAPENCIUC, Associate Professor, Ph.D. Ec. “Stefan cel Mare” University of Suceava Keywords CRM, data mining hotel industry 1. Introduction It’s a fact that a successful company not only put customers first, but put customers at the center of the organization because the changes in customer behavior determines unpredictable profitability and may be the cause for inefficient marketing planning. The main goal of CRM is the capability to handle customer interaction across different channels and functions, for building loyal and profitable customer relationships. Although cost cutting and competitive pricing strategies may attract customers from competitors, in many services industries price advantages are not a sufficient reason for customers moving between suppliers. In these situations successful competitive strategies include developing strong relationships with customers and cross-selling them other services. Data mining - techniques for exploration and analysis of large quantities of data in order to discover meaningful patterns and rules - helps businesses sift through layers of seemingly unrelated data for meaningful relationships, where they can anticipate, rather than simply react to, customer needs. 2. An overview of CRM Customer Relationship...
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...1. Customer relationship management (CRM) is one of the most important concept of modern marketing. It is a model for managing a company’s connections with existing and upcoming customers and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Nowadays, significant changes are occurring in the ways companies relate to their customers. Big corporations are using Interactive customer relationships to reach their carefully selected customers, and new technologies have changed the marketing relationships in which customers interact with companies. Email, Web sites, Cell phones, Blogs, Social Networks are all new Internet capabilities that help a company manage customer relationships in an organized way. The Integrating Email marketing is a good example of customer relationship management, it has so many benefits for corporations such as Real time connection, greater segmentation and sales visibility. Besides, it also helps companies to create customer loyalty, satisfied customers remain loyal and talk favorably to others about the company and its products and services. On the other hand, there are many strategies for building long term customer loyalty and relationships: because customers are different and they always come with a variety of different desires, needs and expectations, the most important strategy is to know first your customer and to treat every single one with concern and compassion. The second strategy is to make...
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...Question1 : What are the development approaches for CRM implementation Answer: 1. Defining CRM Functionality: As the requirements define the “what” functionality defines the “how”. Interestingly enough, so does the business process. The best way to identify your functionality is to map out your business process and identify the functions within it. Each function should map back to a business requirement. The key questions to ask when defining necessary functionality are “what aspect of our customer-focused processes do we need to support with technology?” For this to work, the process has to involve following process: a. Analyze customer purchase history to understand the most frequently purchased products by other like customers. b. Score the likelihood that a customer will buy an individual product. c. Communicate resulting customer list and product scores to call center application system. d. Collect response rates. e. Refine scores based on campaign results. The point here is to define your own unique requirements. After the unique requirement is listed, record the functionality for each one, asking, “How will we accomplish this requirement?” This will give you a list of key functions for each requirement and will finish the hard part. 2. Narrowing down the technology choices: When one has identified the necessary functions, one is ready to map the functions to the candidate technologies by answering the question, “Is there a CRM tool that can perform each...
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...Well talking about Customer Relationship Management (CRM), it can be define as a set of technology-enabled business processes that enable us to create more consistent and profitable interactions with our customers which is also known as relationship marketing. But first we must be aware of satisfying customers. Customer satisfaction is a business philosophy which tends to the creation of value for customers, anticipating and managing their expectations, and demonstrating ability and responsibility to satisfy their needs. Qualities of service and customer satisfaction are critical factors for the success of any business. As Valdani (2009) points out; enterprises exist because they have a customer to serve. The key to achieve sustainable advantage lies in delivering high quality service that results in satisfied customers (S hem well et al, 1998). Companies are facing their toughest competition ever. To win customers and encourage them to stay loyal or repurchase the service, most companies have resorted to meeting and satisfying customer needs by not being only reactive but proactive. They are also interested in finding new ways and means to satisfy the customer. Most companies are aiming for good customer relationship which means better service to the customer thereby preventing the customer from being promiscuous. A lot of companies are not just attracting customers, but are working at building long term relationship with customers both local and foreigner, suppliers, employees...
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...what they need and what through creating and executing products and values with others” -PHILIP KOTLER “Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and it stakeholders.” Coping with these exchange processes calls for a considerable amount of work and exchange thinks about the means of achieving desired responses from other parties. Thus we see marketing management as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value” -A.M.A (American Marketing Association) “The market include both places and region in which buyers and sellers are in free competition one another” - PYLE “Market for most commodities may be through not as a geographical meeting places but as getting together buyers and sellers in person by mails, telephone or any other communications” - MITCHEN CUSTOMER RELATIONSHIP MANAGEMENT Over a century...
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...Customer Relationship Management Alan D. Kero HTT/220 May 9, 2014 Rhonda Moore Customer Relationship Management CRM is a customer service management database that holds guest information and then can tell you what the guest’s likes and needs are. This is best used to anticipate a guest’s preferences before they arrive for a stay at your hotel. A true CRM is based more on recognition of the guest than on rewards that can be given to that guest (Nyheim, et al, 2005). A true CRM program is all encompassing when it comes to the information on any individual guest, from check-in to marketing. A CRM is best used when all aspects of the hotel staff are trained in its use. The information in the CRM comes for history with the guest, staff observances, and guest interactions with all touch pints within the hotel. With all the information gathered on a regular basis, the staff can look at the guest’s folio to find what their references are. This helps to prepare the staff for that guest’s arrival. With today’s reliance on the internet and social media the CRM helps hotels to now market to an individual rather than a mass group of people (Nyhiem, et al, 2005). The CRM allows the hotel to keep information on each guest. By using this information the management team can be better prepared to try and keep a repeat customer by showing the client that they care what the guest thinks and how to go about making them feel relaxed and welcome. References: Nyhiem, P. D., McFadden,...
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...Customer Relationship Management According to Kotler and Keller (2009), customer relationship management is the way in which organizations manage specific information they obtain about their individual customers for the purpose of increasing customer loyalty (p.67). There are many different ways that organizations can go about building meaningful relationships with its customers. Establishing and maintain loyalty with customers is very important to the future success of an organization. The way for an organization to ensure that customer loyalty will remain intact is to never cease to present quality products and or services to their customers. This can create value to these products and services. The use of CRM can increase customer satisfaction and customer loyalty. The influence of customer satisfaction on loyalty should be noted when making connection More and more organizations are realizing that having customer centered operations are no longer optional. With this in mind, CRM can be viewed as a tool used to develop businesses and create a framework used to improve the delivery of services or products to its customers (Kapenen, 2004). In the past, customer satisfaction has been used to explain a customer’s loyalty but marketing scholars argue that there is a relationship between customers’ perceptions and behavior; but for the most part, customer satisfaction is still expected to play a major role in customer retention (Gustafsson, Johnson, & Roos, 2005, par.7)...
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...Salesforce[Document subtitle] | | 5/31/15 | Customer Relationship Management | | | Salesforce[Document subtitle] | | 5/31/15 | Customer Relationship Management | | CRM ASSIGNMENT #1 Salesforce Business Model: Salesforce.com used the Software as a Service (SaaS) Model to provide services to its customers. What SaaS model does is it gives the customers the option to save upfront costs without the need of installing hi-tech servers in their premises, instead all their data is stored in the external cloud space managed by the service provider. Salesforce provides its customers with a variety of cloud based applications that can be used by them and customized by them as per their requirement. Salesforce has made it easy for the companies to adapt to their software as a single version of software which is enough to accommodate their business operations requirement. Also the companies can subscribe to the services that they want and not the whole software in itself. This helps to keep the cost in control. To understand how salesforce does it we can have a look at the short video. Some of the various services offered by Salesforce are: 1) Service Cloud: Due to this the customers of the client can get support where ever required. 2) Desk.com: This tool can be used by business to offer personalized services and solution. Enables to easily survey customers from within Desk.com to measure customer satisfaction (CSAT) and adjust your products and...
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