CRM

TABLE OF CONTENT

TOPICS 1) Executive summary 2) Research methodology 3) Introduction 4) Main body a) About CRM b) History of CRM c) Whos in CRM Game? d) How CRM does helps? .

PAGES 3 3 4 -5 6 7

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e) Relationship between CRM and an organization .. 10 f) Critical analysis on CRM g) Factor of CRM h) Case study i) Analytical CRM 5) Conclusion 6) Recommendation 7) Bibliography . 11 .... 12 ...... 13 14 .. . 15 16

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EXECUTIVE SUMMARY: This is the assignment of CRM and its relationship with an organization. CRM is regarded as the customer relationship management. CRM is very important in each and every company. As CRM is the technological term used to maintain the relationship to the customer and fulfilling the customer satisfaction. CRM is also related to the marketing process. As we know that there are five steps in marketing process and they are: Value and satisfaction, Markets, Relationship, Offers, and Wants. Among them four steps is used by an organization to understand the customer needs and wants and last step is used to create customer value. Here, I have mentioned and shown diagram of marketing process and the CRM as below. In the same way, I have also described about the relationship of customer relationship management and the organization and how CRM has influenced and organization to move forward in the field of development. I have also taken some theories of writer regarding the CRM and have also presented critical analysis of that theory. In order to show various aspects and the analysis, I have also presented some case studies and they are as below.

RESEARCH METHODOLOGY: As we know that in order to accomplish any task, we have to do some research so that we can get the exact data as well as information. In fact, there are two kinds of data and they are: Primary data Secondary data a) Primary data: Primary data are known as the raw fact which we collect by doing the surveys and the samplings. b) Secondary data: Secondary data are those data which are already collected and created by somebody else. For example: Materials from the internet. In this assignment, I have basically used secondary data. It is because, almost all the materials that I have used here is from the internet source but somehow I have also mentioned from the book sources. In this way, I have done this assignment.

INT

TION ON CRM:

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sales personnel. It also occupies the wide range of staffs. Here, it is also said that traditional work is going to be conducted which can only manage the relationship regarding customers. Ref: avid. Mercer, 1998, P. 5) However, on the other hand Kotler. P and the Armstrong have defined customer relationship as the process of building the profitable relationship by delivering the superior customer satisfaction. They have explained all about the customer level and the tools and also about the customer satisfaction. Ref: Armstrong/Kotler, Mercer. 5, P 15,)

their views are a bit similar as well. Thus from their thinking, I came to analyse that CRM is the process of maintaining customer behaviour with an organization so that company can move to have profitable relationship with the customer. So I think an organization should consider the demands and wants of the consumer and should provide the quality of the products. So in the return, company can have profit. Here, Mercer has also mentioned about the staff while describing about the CRM however, Kotler has defined about the customer level and customer satisfaction. Thus, I agreed that CRM is essential in this modern era. Customer relationship management was defined by one of the earliest writer Berry 198 ) from America and he has first time declare that CRM is essential to build the long term relationship with the customers and is also related to the service markets. In the mean time, in Europe, different group IMP) had formulated similar concepts concerning the selling and buying relationship in industrial markets. Similarly, the moving of firms from transactional to relationship marketing was given by Sasser and Reichfeld 199 ). These types of researchers have shown the increase in profit by an organization in retention rate of consumer. Ref: Chaston. I, 4, Page. 5)

Todays era is actually the era of innovation, different things have been discovered up to now. Among those, CRM is also one of the newly invented words in the field of customer service as it represents the customer relationship management which maintains the proper relationship between the customer problems and issues. CRM helps to accumulate each and every data about the customer which can be beneficial for the future transaction.
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In the context of different organization, the investment in relationship is made by

and kotler.P has given their views about customer relationship management and

ABOUT CRM:

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Fig: Marketing process These five steps include the following points:
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Value and the satisfaction Markets Relationship Offers related to marketing Wants and demands 9, Page. 7 8)

Ref: Armstrong. G, Kotler. P, Harker. M, Brennan. R, Among those five steps, first

steps means understanding the marketing places and the needs

of the customers and also designing the marketing strategy while rest of the points describes about building the customer relationship in the profitable manner.

HISTORY OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM): Customer relationship management was defined by one of the earliest writer Berry 198 ) from America and define about the service markets. After sometime in Europe, different group IMP) had also proven the theory of CRM. CRM is the concept regarding the business world that is adopted in the view of changing the small and large interacted company with their customer bases. uring the last few years,

because of the invention of different technologies and the software, there occurs improvement in capabilities and the abilities of the CRM and it has become the reality. As the price of the customer needs has increased in sky rocketing way, competition has also increased and has driven the price down and the benefit has got by the CRM programs. WHOS IN THE CRM GAME? CRM has its own market and the CRM market has been divided into five players in the industry and they are as follows:
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Oracle SAP Siebel

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However, in the recent few years, during

, oracle has released their global CRM in 9

days package which has promised to implement CRM throughout the office of any company. Ref: http://customerservicezone.com/customerserviceguest/crmhistory.htm)

HOW DOES CRM HELP? CRM is one of the important factors of any organization. CRM also helps an organization with the effective outcome. This means if an organization wish to have a good CRM then automatically a company can have a progress. It can also helps to keep the track of the clients so that there can be the mutual interaction between the customer and the company. This can helps to expand the business. Ref: http://www.esalestrack.com/CRM/What Is CRM/How It Helps.html)

RELATIONSHIP BETWEEN CUSTOMER RELATIONSHIP MANAGEMENT (CRM) AND ORGANIZATION:

Customer relationship management CRM) and an organization are directly proportional to each other. Only systematic implemented CRM system can give the beneficial contribution to an organization. There are four major areas of CRM affecting the business in the proper way and they are as follows: I. In the context of top management, CRM helps those top management system to decide about the future of the company regarding some adjustment as well as some maintenance. II. Expansion of our business also can be done by the support of CRM.
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III.

In the company, we have to handle huge data and these all can be handled by the help of CRM.

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As CRM aids as the interaction between the company and the customer, we can also work out with the increasing number of customers and the numbers of data.

Ref:

http://ezinearticles.com/?The importance of CRM Customer Relationship )

Management&id=4 5

Thus, if we became able to implement effective CRM, then only we can make our company more efficient. However, CRM developers also have created some tools to solve the problems regarding the organization so that both the organization and the customer can walk both ahead so that new features can be invented. Ref: http://www.esalestrack.com/CRM/what is CRM/HOW IT helps.html)

Generally speaking, in the context of business, CRM is supposed to be the computer marketing but frankly its much more than that. The proper management between CRM and an organization can only lead to the customer satisfaction and services which can only lead to customer retention and repeat business. CRM helped organization being based on three levels such as complete consortium of employees, Procedures and the programmes. CRM also helps or worked for the following main points as below:

1. Shared documents or data . Cost reduction . Better customer service 4. Increased customer satisfaction 5. More profit. Ref: http://www.customerservicepoint.com/crm-system.html)

CRITICAL ANALYSIS ON CRM BASED ON THE EXAMPLE: As we all know that CRM is the technique of any company which are applied in order to maintain good relationship with the customer those who are supposed to be the valuable for the company. According to the Stone, Woodcock and Wilson 199 ), marketing perception was replaced by the customer focus marketing which has given focus on the marketing planning by using the new invented technology and also the relationship between the suppliers and the customers. CRM is actually supposed as the gift of the technology to the company. The value and then importance of customer relationship has also defined by Chen and Popvich ). They have stated that customer relationship can helps to maintain

Perfect approach towards the customer which is good for the long term benefits for an organization. Furthermore, Payne and Frow 5) has declared three CRM perspectives and

five cross functional process of CRM to show the long term relationship management and the retention strategy. Like this various writer has given their views on CRM. However, their aims are same but they are presented in different ways. Thus, in my view CRM is one of the factor which is very important for any organization and along with the CRM, only an organization can get success and can achieve its goal.

Ref: http://ivythesisessaysamples.blogspot.com/ 1 / 9/customer relationship management crm

at.html)

Loyalty card of supermarket (Example): As we know that customers are assert of any company and the main objective of relationship marketing is to ensure the customers are attracting towards the company. One of the examples mentioned here is about the loyalty card and is really relevant. Nowadays in the worldwide context, it is seen that supermarkets are using the system of loyalty card in order to try to reward daily customers. In the previous days, it was seen that people used to buy the products from those shops which comes on the way but nowadays customers are making the loyalty cards and are using those cards to gain the point. This is in fact one of the good scheme that is provided to the customers and this is one of the important factor for creating the marketing relationship and it has strengthen the relationship of customer and the company.
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(Ref: Blythe. im, 4th edition,

8, Page no. 87 88)

Why CRM is necessary for the organization? CRM is also considered to be a technology of the information technology industry. It is the strategy towards the view of partners and the joint effort of marketing and the business processes. The mantra behind CRM is catering to customized needs centrally . Guru has defined CRM as the strategy of the business to select and to maintain most valuable customer relationships. It relates to the customer philosophy and culture which can build up the effective marketing . (Ref: http://www.stylusinc.com/crm/Ecommerce/ecrm.php

CRM can only lead for the better marketing of the products of the business. Through the good CRM, we can improve the services so that we can win or achieve our target in the future. As we know each and every organization has their target to accomplish their work and for this they have set up some short term plans as well as long term plans. So, if there is good and proper CRM then we can easily have our target achieved and can have our company moving towards the path of development. (Ref: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1075422939&type=RESOU RCES) CRM is one of the essential means to connect different parts of the company in a single thread of customer relationship. Normally, every company maintains some information regarding customers such as names, address etc. and company always cares about their customer in order to provide them satisfaction so that company could have their good relationship with the customer so ultimately they can increase a profit of their business.

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TYPES OF CRM MARKETS: As there are so many firms and each has their own method of doing business. However, most of the firms are still keeping traditional view but this has lead to the bad practices as follows: It fails to identify the needs of long term customers. Inner conflict can occur within the department in the context of selling the goods.

Transaction marketing v Relationship (Social) marketing (CRM):

Transaction CRM

Relationship CRM

Concentrate on the single sale Short time scale Moderate customer scale (Fig: Christopher et al 1991)

Concentrate on the customer retention Long time scale High customer scale

One of the main factors for the relationship marketing is about the customer intimacy. This reflects to the fact regarding the close relationship towards the customer to understand about his/her needs and demands and establishing the relationship.



(Sources of i

e: Whitepapers.technologyevaluation.com )

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FACTOR APPROACHING RELATIONSHIP MARKETING: One of the main and the essential factor which are important in approaching relationship marketing is:
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Quality:

Quality can be defined as the outcome that we expected to receive in place of spending our input. If the customer fulfils his/her expectation then only he/she can believe the quality of product is good otherwise they will declare it having the poor quality product and they will be discouraged. Only just satisfying the customer is not the aim of relationship marketer, but also delighting the customer is also the wish of relationship marketer. Therefore, products should have the good quality so that customer can be happy with that product and it will directly help to achieve profit for any company. CASE STUDY: A wise man has once said that experience is the best teacher but most people refuse to learn from it . Thus I have also mentioned one case study that is related to the above quotation as below: Training and support-Pilot programs spark interest: Training is supposed to be one of the biggest means for the users to achieve or maintain customer relationship management area. This interesting case study is all about the Barclays bank and the buyer mortgage. In this case study, it is mentioned that Barclays bank gained information regarding home buyers by approving mortgage with Interactive (IVR) system sale people out in the hope of getting real time mortgage by home buyer over the phone. This helps to increase the mortgage sales by giving permission to the sales people in order to make firm offer to home buyers. A small number of sales people were allowed to try the prototype by supporting the system after the test period. This undoubtedly helps the quick wide adoption. (Ref: http://www.5minute guide.com/crm/CRM Case Studies.php)
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ANALYTICAL CRM: Analytical CRM is defined as the operation or the process that directly does not deal with the customers. It is used to collect the data and the information of the customers on which capitalization can be carried out by the companies or the organization. The main goal of analytical CRM is to develop the work and the decision making capacity of an organization and find out the prediction regarding customer data. Advantages of analytical CRM are as follows:
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It helps to make more profit and also helps in retaining profitable customer. It also helps in finding out the customer needs and the demands. Analytical CRM can helps in the customer satisfaction and the loyalty of the customer.

(Ref: http://www.managementstudyguide.com/analytical crm.htm)

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CONCLUSION: We all know that this is the 1 st century and is the world of innovation and invention. This is the era of competition and the competition is increasing in the skyrocketing way. Along with it, business is also growing in the rapid way. So in order to sustain in this world, each and every company are applying various means to maintain their relationship with the customer so that in return they can have the profit. CRM is really very essential in each and every organization. It is one of the important parts of modern business management. CRM can only lead any company in the field of development. Only because of the good CRM, company can improve their service. CRM and the organization both are directly related to each other. CRM is the technological terms which are used to maintain the relationship regarding the customers. Various writers has given various views about the CRM, however, mainly they all convey the same message. For example: Mercer, . has defined CRM both as the relationship with the

customer and also said that it occupies the huge range of employees, however, kotler has only described about the customer satisfaction and the relationship with the customer. However, both of the writers main aim is to describe about the importance of the CRM in an organization. CRM is also related to the marketing process. Marketing process consists of 5 steps and they are: Value and satisfaction, Markets, Relationship, Offers, and Wants. Among them in first four steps company move ahead to fulfil the customer needs and demands. Likewise, last one step is used to create customer value.

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RECOMMENDATION: Here form the above presented information; we came to know that customer relationship management is very essential for an organization. Customer relationship management and the organization are directly related to each other. When an organization is aware about the customers need and demands and if they can fulfil their needs, then only company can be benefitted as the outcome. Thus, I want to express my view in the favour of CRM as it is very important to every organization and I want to encourage all the organization to accept the CRM and should be careful for maintain the good relationship between an organization and the customer. As a result, company can achieve its target in the expected period time and the company can exist in this world of competition.

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David. obber, ohn fahy, )

nd

edition, Tata Mc Graw Hill Edition.

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David. Mercer , 1998, Marketing strategy, Precentic Hall P. 5)

y y y

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5, marketing and introduction Precentic Hall , P. 15) 5)

4, Knowledge Based Marketing, Sage Publications Ltd, Page.

Armstrong. G, Kotler. P, Harker. M, Brennan. R, Pearson Education Limited, Page. 7 8)

9, Marketing an Introduction,

y y y

http://customerservicezone.com/customerserviceguest/crmhistory.htm http://www.esalestrack.com/CRM/What Is CRM/How It Helps.html) http://ezinearticles.com/?The importance of CRM Customer Relationship Management&id=4 5 )

y y
y

http://www.esalestrack.com/CRM/what is CRM/HOW IT helps.html) http://www.customerservicepoint.com/crm-system.html)

at.html)
      

http://ivythesisessaysamples.blogspot.com/

1 / 9/customer relationship management crm

Blythe. im, 4th edition, Page no. 87 88)

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http://www.stylusinc.com/crm/Ecommerce/ecrm.php http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1075422939&type=R ESOURCES)

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