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  • Published on: 14th September 2019
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CUSTOMER RELATIONSHIP MANAGEMENT

Introduction

Customer relationship management {CRM}is a software based platform that helps an organization to manage its customer base/relationships more dynamicallyso that it can withstand with the current competitive market. With more and more organizations realizing the importance of attracting and creating a customer-targeted /focused marketplace in this highly competitive century/era, they take on CRM as a most important tool to enhance their businesses strategies.CRM, uses both the  information technology and relationship marketing, as  it provides with the support that eases long-term relationship building with the customers at an organizational level. Though implementation of CRM software is a complex, costly thing. Here different approaches to helpCRM software  in solving modern organizational problems faced by enterprises will be discussed. CRM if implementedstrategically than it can drastically increase the transaction volume. Modern business environment is vigorously dynamic and at each phase experiences rapid changes as due to technological Advancement, increased awareness and everything going electronically or we may say digitally to serve their customers. CRM is a base that to used to read the behaviour of the customers' needs and wants their behaviour in order to create a stronger bond with them.

Why CRM

The need for a software arouse in  mid 20th century when there was a boom in mass production techniques and mass marketing which later changed the whole scenario as it increased the availability of product to the consumer. But the problem arose when companies became greedy and customer became a account number to them as market flooded with products an d services to choose from .So to Boost long term customers companies started loyalty programmes this was the time when the Customer relationship management {CRM} come into existence and the companies which implemented these gained highly from them.CRM software is made targeting three things in mind first is the Customer as it is the only source of  income generation of the companies‟ Todays profit and future growth .CRM can be described of as a marketing approach that is based wholly on customer information. Second one is the Relationship as what type of relationship a company has with its customers greatly influences it involves continuous both directional interaction and communication. So CRM does the job of managing this relationship so it is profitable and mutually beneficial. Third one is the Management: as we know that CRM is not only a activity  within a marketing department, but it  involves continuous corporate changes in terms of technology ,culture and strategies.. CRM used in business for identifying the new selling opportunities. CRM provide a company-wide access to customer histories.CRM has not only evolved as a popular business strategy in modern competitive environment but  It is a platform that provide the companies with strategies to identify and target their most profitable customers. Next process  involvescompletely new and advanced marketing strategies that not only helps in retaining the existing customers but also helps to  acquisition of a new customer. These were the three key elements for a  successful CRM standoff -business process, and technology people,. As Customer relationship management {CRM}acts as bridge between the  front office (example: marketing ,sales, andcustomer service) & back office (example. operations, logistics ,financial, andhuman resources) execution with the company's customer “data's or records”.To increase the customer life time, value the use and implementation of customer relationship management (CRM) systems is becoming increasinglyimportant. To understand what actually is the demand of the customer to  

offer him with value-added services determine whether the company will retain its value in long term success or failure of companies. Due to this more and more organizationsbegin to attach so as toimprove the electronic customer relationship management (eCRM), whose main focus is the customers instead of the product,services, that includes taking into consideration the customer's needs in all areas of a business as to provide with a sense of satisfactionto the customer. Access to information on customer data, profiles and purchase history gives support to important areas of a company's core processes, especially in marketing, sales and service.Electronic customer relationship management (eCRM) is a process that optimises profitability, as it makes the customer Feel as if they are part and  parcel of the company. If dealing with a

customer-centric organization, it is necessary to develop the abilities to

acquire the necessary resources,tools and knowledge to fulfil customer's

needs with the unique products and services. A system is effective only if it helps in the managing of semi-structured problems. These  abilities of these systems are usually used while managing the level of strategic proper planning. A system effectivesuch as CRM must be enabling an organization to access deeper into customer behaviour and preferences whereas ERP should focus on supply and demand for key resources and materials.Mode of approaching of different organizations on using CRM is different . Some perceive CRM

as a as an essential part of business while others as a technological tool.

According to Verhoef et al, rate of success of CRM implementation varies

between 30% and 70%. According to data's of the industrial analysts, almost two/thirds of customer relationship management (CRM) systems development projects fail to deliver results. While According to {International Data

Corporation}, the succession rate CRM implementation is

below 30% , hardly making sense of Return of investment(ROI) to the cost of implementation . Another data estimates that around 60 and 90 percent of ERP

implementation was unable to achieve the goals set forth in the project approval time. So, the factors that determine the success or failures during implementation of CRM have become a hot topic in  the subject of active research in these recent years.Looking towards the success rate of the CRM, software vendors/providers such as Clarify, SAS, and Siebel,Oracle, SAP, and PeopleSoft, begin developing new software's to bring off to the line new modified and better CRM applications to organizations. Reason of these are the vendors who are in verge for developing enterprise resource planning (ERP) systems. According to research done by AMR Research it was estimated that the present CRM market will top $16.8 billion by 2003A study performed by Forsyth showed drastic results in which he took a sample of 700 firms, with regards to the causes of failure to reach the CRM benefits. The factors causing the failure were-

• Little understanding of CRM (20%)

• Poor CRM sills(6%)

• Organizational change (29%)

• Company policies/inertia (22%)

Social media and CRM

In this technological age the special place given to Social Medias as people pass  most of their time on internet as the world is becoming „small‟ from global and is squeezing its social ,economic, and political boundaries thus providing with  a common platform for reserch and development .The platform provided by the media has boosted the usage of internet that have given birth to social media. “social media “can be used in several contexts related to different technologies and things they can accomplish. Social media can be defined as the generation, consumption and ideas expressiveness in form of information across platforms for purpose of social interaction. Social media has taken the internet world to a whole new sky level .internet has revolutionized completely by changing the ways communication used to take place even a decade ago. What It does is that it makes use of the so called web-based technologies to change it into social media dialogues through web channnels. This platform is mostly of use to those who have been interested in search engine optimization and Internet marketing Today the mass population is now relying more on social networks to learn about new events and are highly influenced than ever by their peers. This is the reason that , Social Medias now play a vital role in managing or duping public opinion. In this era of the web 2.0 nearly everyone presently has a broadband internet connections, out of which a large majority of the online population is  passing their online time chatting and communicating with each other through a new medium..whereas LinkedIn - Professional networking site Apart from e-mail and instant messengers, they expresses theirviews by the use of like face book, Twitter, LinkedIn blogs, micro blogging websites and social networking websites and many others.Out of these also so called popular social media websites are: Face book, MySpace, Google are the Mainstream social networking sites. Blogs like Word Press, BlogSpot - used for broadcasting and publishing data YouTube - Video sharing website. One cannot forget the online encyclopaedia known as the Wikipedia .SCRM is a Social Customer Relationship Management By combining the social media with customer relationship management (CRM) it can provide several strategies for organizations who want to use the power of social interactions to gain closer relation to customers. The social CRM connects social media with the traditional CRM. Social media holds the power for firms to get close to one another and to get closer to customers and, by doing so, facilitating and increasing the overall revenue ,cost reduction .now the Businesses are rapidly making use of social media not only to build virtual communities but to improve customer care and to properly streamline customer research. Companies need to understand that Social media and customer relationship management (social CRM) enables their brand to make  accessible to your customers more than ever before. Which can enhances your traditional CRM by listening for and with social media conversations,.Due to this result ,an increasing number of CRM developing companies are now offering social media integration into their CRM software suit. Now due to this  CRM customization it is allowing your social media accounts to be linked and managed through your customer relationship management software .The benefits offered by SCRM are:

• Improved peer –to-peer interaction in offering customer support.

• Market feedback research

• Idea management

• Brand positioning and promotion

• Product launching

Conclusion

CRM suit is designed specially so that it can focus on the customer

first, specifically one customer at a time, to build a long-lasting mutually

beneficial relationship.

Customer relationship management is a widely broadened approach that

promises to maximize relationships with all the customers, including Internet as we have seen in example of SCRM and  “e-customers”, also the distributional partners, and suppliers. As it helps to knowindividual customer through data mining techniques and a customer-focusedbusiness strategy which benefits the organization by proactively and consistently offering more and more products and services over longer passage of time.In the coming years we may see more widened integration of social media to customer management platform(CRM). As using social media as a meaningful way to develop bonds with their customers and providing publicity of their products.

References.

1.  .http://www.arcep.fr/uploads/tx gspublication/etude-credoc-2009-11209.pdf.

2.  IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 27-32

3.   Ahuja,V. (2010, March 23). Corporate blogs as e-CRM tools-building customer engagement through content Management. Journal of Databases Marketing & Customer Strategy Management,Vol.17,2,91-105

4. Customer Relationship Management:

Implementation Process Perspective

Alok Mishra, Deepti Mishra

Department of Computer Engineering

Atilim University, Ankara, Turkey

[email protected], [email protected]

5. Mendoza, L-E., Marius, A., Perez, M., Griman, A-C. (2007) Critical

Success Factors for a Customer Relationship Management Strategy,

Information and Software Technology, 49(2007), pp. 913 -945

SUBMITTED BY

-APURBH SINGH KASHYAP

ROLL NO-317SM1010

SCHOOL OF MANAGEMENT

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