Premium Essay

Customer Relationship Management

In: Business and Management

Submitted By prayastarani
Words 1456
Pages 6
CRM
From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a number of employees in different roles and departments. CRM is a combination of policies, processes, and strategies implemented by an organization to unify its customer interactions and provide a means to track customer information. It involves the use of technology in attracting new and profitable customers, while forming tighter bonds with existing ones.
CRM includes many aspects which relate directly to one another: * Front office operations — Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc. * Back office operations — Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance, manufacturing, etc.) * Business relationships — Interaction with other companies and partners, such as suppliers/vendors and retail outlets/distributors, industry networks (lobbying groups, trade associations). This external network supports front and back office activities. * Analysis — Key CRM data can be analyzed in order to plan target-marketing campaigns, conceive business strategies, and judge the success of CRM activities (e.g., market share, number and types of customers, revenue, profitability).
Proponents of CRM software claim that it doesn't only allow more effective ways of managing customer relationships, but also more customer-centric ways of doing business[5]. Executives often cite the need for the proper tools as a barrier to delivering the experience their customers expect. A 2009 study of over 860 corporate executives revealed only 39% believe that their employees have tools and authority to solve customer problems.[6]

E-Business is a phrase most commonly used to describe electronic...

Similar Documents

Premium Essay

Customer Relationship Management

...Introduction In the early of 1960s, Levitt recommended that the aim of business was to “create and sustain customers” [1]. After more than few generations, it can be valued how the Customer relationship management thought, and the need to sustain a long-period relationship with customers, is becoming a noteworthy matter. The main reason for this customer’s worth return within the firm is the modification in the way of doing business nowadays [2]....

Words: 4224 - Pages: 17

Premium Essay

Customer Relationship Management

...INTRODUCTION The essence of the information technology revolution and, in particular, the World Wide Web is the 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....

Words: 1780 - Pages: 8

Premium Essay

Customer Relationship Management

...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....

Words: 2422 - Pages: 10

Premium Essay

Customer Relationship Management

...Customer Relationship Management A Framework for Customer Relationship Management 3 main topics of the article 1. Old and new marketing approach differences – what are the reason for the shift in the marketing approach Old | New | Transaction based | Reaction based | Mass advertisement | One to one marketing | Price oriented product | Customized | Acquisition | Retention | Indirect communication | Direct communication | | | Transaction Marketing (old approach) Just one exchange between company and customer and this is the product from company to customer and money from customer and company. Main objective is to maximize the profit out of this single transaction therefore there is a strong need to acquire more and more customers. Relationship Marketing (new approach) Main difference between TM and RM: multiple transactions between company and customer. Objective: to maximize Profit out of multiple transactions with a single customer. The profit out of multiple transactions with one single customer is called: Customer Lifetime Value Reasons for the shift 80/20 rule (80% of the profit is generated by 20% of the customers) Globalization | competition Acquisition is more expensive Cross and upselling Acquisition vs retention is the main reason for the shift 2....

Words: 739 - Pages: 3

Premium Essay

Customer Relationship Management

...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 et al., 2005) and after marketing (Vavra, 1992 as cited in Parvatiyar...

Words: 7085 - Pages: 29

Premium Essay

Customer Relationship Management

...The increased use of customer relationship management software has also led to...

Words: 5644 - Pages: 23

Premium Essay

Customer Relationship Management

...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....

Words: 2689 - Pages: 11

Premium Essay

Customer Relationship Management

...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....

Words: 973 - Pages: 4

Premium Essay

Customer Relationship Management

...There are several definitions about Customer Relationship Management (CRM), but some people have many mis-understanding such as database marketing, marketing process, loyalty schemes and do-able by any company....

Words: 739 - Pages: 3

Premium Essay

Customer Relationship Management

...Able to build a stronger customer relationships As a sales team, what matter most is to build a strong relationship with your customers. By implementing the CRM technology, the team productivity would be increased and enable one’s to spend more time with the current customers. Not only that, sales person is also able to spend more time with new and potential customers due to the efficiencies that was put in place by the implementation of the CRM technology. Ultimately, more time with your customers means an increase...

Words: 1693 - Pages: 7

Premium Essay

Customer Relationship Management

...| 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....

Words: 3011 - Pages: 13

Premium Essay

Customer Relationship Management

...BCO6604— Customer Relationship Management Semester 1 2011 Lithan Hall Singapore Presentation (30% of assessment) & Short Paper (25% of assessment) This assignment should be done in groups of no more than 2 students. You must select a customer relationship management systems topic in conjunction with your workshop leader. The topic chosen will form the basis of a professionally written paper and presentation. Students can select topics based on their own understanding and investigations of the different types of CRM systems or applications across different industry settings. The scope of the CRM topic can be relatively narrow or broad....

Words: 1331 - Pages: 6

Premium Essay

Customer Relationship Management

...An overview of CRM Customer Relationship Management (CRM) is an enterprise customer-centric approach that uses different techniques to understand and influence consumer behavior. It is a process which has two objectives: • to impact all aspects to the consumer relationship (improve customer satisfaction, enhance customer loyalty or increase profitability) • to ensure that employees within an organization are using CRM...

Words: 3802 - Pages: 16

Premium Essay

Customer Relationship Management

...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 of these core functions?” The best way to find the CRM products that offer you required functionality are: a. CRM conferences and trade shows b. Analyst firms specializing in CRM, such as the Yankee Group, Gartner Group, and META Group. c. Consulting firms specializing in CRM (be extra diligent about those that have partnerships with CRM vendors). d. Trade publications, particularly those...

Words: 1643 - Pages: 7

Premium Essay

Customer Relationship Management

...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....

Words: 284 - Pages: 2