PDF | Customer relationship management (CRM) has once again gained As is implicit in the above definition, the purpose of CRM is to. managing the relationships with customers, especially in the areas of customer information Customer Relationship Management in the literature of the subject is . Definition: CRM is a .. /Documents //FSINews hopedir.info In addition, the aim of this thesis was to find out how CRM Critical functions - Define what the CRM needs to accomplish in order to reach the content/ uploads//07/hopedir.info, [12 Apr ].
Therefore using technology to improve CRM makes good business sense. CRM solutions fall into the following four broad categories.
Outsourced solutions Application service providers can provide web-based CRM solutions for your business. This approach is ideal if you need to implement a solution quickly and your company does not have the in-house skills necessary to tackle the job from scratch.
It is also a good solution if you are already geared towards online e-commerce. Off-the-shelf solutions Several software companies offer CRM applications that integrate with existing packages. Cut-down versions of such software may be suitable for smaller businesses. This approach is generally the cheapest option as you are investing in standard software components. The downside is that the software may not always do precisely what you want and you may have to trade off functionality for convenience and price.
The key to success is to be flexible without compromising too much. Custom software For the ultimate in tailored CRM solutions, consultants and software engineers will customise or create a CRM system and integrate it with your existing software. However, this can be expensive and time consuming. If you choose this option, make sure you carefully specify exactly what you want.
(PDF) Customer relationship management : concepts and tools
This will usually be the most expensive option and costs will vary depending on what your software designer quotes. Managed solutions A half-way house between custom and outsourced solutions, this involves renting a customised suite of CRM applications as a tailored package. This can be cost effective but it may mean that you have to compromise in terms of functionality. How to implement CRM The implementation of a customer relationship management CRM solution is best treated as a six-stage process, moving from collecting information about your customers and processing it to using that information to improve your marketing and the customer experience.
Stage 1 - Collecting information The priority should be to capture the information you need to identify your customers and categorise their behaviour. Those businesses with a website and online customer service have an advantage as customers can enter and maintain their own details when they buy.
Stage 2 - Storing information The most effective way to store and manage your customer information is in a relational database - a centralised customer database that will allow you to run all your systems from the same source, ensuring that everyone uses up-to-date information.
Customer relationship management
Stage 3 - Accessing information With information collected and stored centrally, the next stage is to make this information available to staff in the most useful format. Stage 4 - Analysing customer behaviour Using data mining tools in spreadsheet programs, which analyse data to identify patterns or relationships, you can begin to profile customers and develop sales strategies. Stage 5 - Marketing more effectively Many businesses find that a small percentage of their customers generate a high percentage of their profits.
Using CRM to gain a better understanding of your customers' needs, desires and self-perception, you can reward and target your most valuable customers. Stage 6 - Enhancing the customer experience Just as a small group of customers are the most profitable, a small number of complaining customers often take up a disproportionate amount of staff time. If their problems can be identified and resolved quickly, your staff will have more time for other customers.
Potential drawbacks of CRM There are several reasons why implementing a customer relationship management CRM solution might not have the desired results. We also identify the forces impacting on the marketing environment in recent years that have led to the rapid development of CRM strategies, tools, and technologies.
A typology of CRM programs is presented to provide a parsimonious view of the various terms and terminologies that are used to refer to different activities. We then describe a process model of CRM to better delineate the challenges of customer relationship formation, its governance, its performance evaluation, and its evolution. Finally, we examine the research issues related to CRM. In the marketing literature the terms customer relationship management and relationship marketing are used interchangeably.
As Nevin points out, these terms have been used to reflect a variety of themes and perspectives. Some of these themes offer a narrow functional marketing perspective while others offer a perspective that is broad and somewhat paradigmatic in approach and orientation.
A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts Bickert, Another narrow, yet relevant, viewpoint is to consider CRM only as seeking customer retention by using a variety of after marketing tactics that lead to customer bonding or staying in touch with the customer after a sale is made Vavra, McKenna has professed a more strategic view by putting the customer first and shifting the role of marketing from manipulating the customer telling and selling to genuine involvement with the customer communicating and sharing knowledge.
Berryin somewhat broader terms, also has a strategic viewpoint concerned with CRM. He has stressed that attracting new customers should be viewed only as an intermediate step in the marketing process and that developing closer relationship with these customers and turning them into loyal ones should be equally important aspects of marketing.
Although each one of them has espoused the value of interactions in marketing and its consequent impact on customer relationships, Gronroos and Gummesson take a broader perspective and advocate that relationships with customers be the focus and dominant paradigm of marketing.
For example, Gronroos states: Dwyer, Schurr, and Oh have characterized such cooperative relationships as being interdependent and long-term orientated rather than being concerned with short-term discrete transactions.
The long-term orientation is often Customer Relationship Management: Emerging Practice, Process, and Discipline 5 emphasized because it is believed that marketing actors will not engage in opportunistic behavior if they have a long-term orientation and that such relationships will be anchored in mutual gains and cooperation Ganesan, The company therefore must be selective in tailoring its program and marketing efforts by segmenting and selecting appropriate customers for individual marketing programs.
However, the objective of a company is not really to prune its customer base but to identify the programs and methods that would be the most profitable as it creates value for the firm and the customer. Hence, our definition of CRM is that Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers to create superior value for the company and the customer.
It involves the integration of marketing, sales, customer service, and the supply-chain functions of the organization to achieve greater efficiencies and effectiveness in delivering customer value. As is implicit in the above definition, the purpose of CRM is to improve marketing productivity. In CRM, marketing efficiency is achieved because cooperative and collaborative processes help in reducing transaction costs and overall development costs for the company.
Two important processes of CRM include proactive customer business development and building partnering relationships with the most important customers. These lead to superior mutual value creation.
The Emergence of CRM Practice As observed by Sheth and Parvatiyar bdeveloping customer relationships has historical antecedents going back into the pre-industrial era. Sheth 6 products and their consumers. These users are exposed to just a fragment of the CRM universe. This book can put their role into broader context.
As an impartial review of the field, it is not tied to any particular perspective on CRM. Indeed, the book identifies a number of holistic models that provide different and competing overviews of CRM.
The book identifies three different types of CRM — strategic, operational, and analytical. The book is structured so that the chapters on each of these types of CRM are clustered together. Several chapters are dedicated to each type of CRM. It is grounded on high quality customer-related data and enabled by information technology.
Customer relationship management
This definition serves as a central point-of-reference throughout the book. If CRM is about developing and maintaining relationships with customers, it is important to have clear understanding of what a relationship looks like, and how, if at all, it can be managed.
We also identify attributes of successful relationships and review five different schools of thought that have influenced relationship management in a business context. Although there is plenty of content on technology, it is not a book about technology, per se. The technology content of the book has been written so that readers who are unfamiliar with technology, or who are technophobes, can still understand what CRM technologies can deliver.
Technology is secondary to management throughout the book. Screenshots are a feature of the book. These are not problem-based cases, but examples of CRM in practice, so that readers can better appreciate how CRM is deployed. Acknowledgements We would like to acknowledge the contributions of many people to the production and publication of this book.
We thank the editorial team at Taylor and Francis for their confidence in commissioning this third edition, their editorial diligence, and the detailed work of tracking down copyright owners and obtaining permission to use their materials.
We thank the owners of all copyright materials for those permissions. We have made very effort to track down copyright owners, and to cite them correctly in footnotes or in the text. If we have failed to identify and cite any copyright material correctly, we apologise, and advise copyright owners to contact our publishers so corrections can be made in future editions. We thank associates around the world who have read drafts of chapters and made helpful suggestions. We thank the stars of the academic and business worlds that have graciously endorsed and lent their authority to our book.
We thank our clients and students on whom many of our ideas have been stress tested.