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Investigation of CRM in e-business

From a B2C Fashion Companies’ Perspectives

Written by I. Dire, D. Samano

Paper category

Bachelor Thesis

Subject

Business Administration>Management

Year

2012

Abstract

Bachelor Thesis: The increasingly fierce competition in customer relationship management, the combined pressure of increasingly complex and dynamic customers and rapid technological innovation have made more organizations realize that they must acquire, understand and manage customer needs in order to stay ahead of the competition (Wei, 2003) . The company hopes to increase profitability by implementing CRM solutions to gain customer loyalty, customize products and reduce costs (Deans, 2004). The winners are those who provide customers with the most value, retain a high-quality customer base, and develop it by establishing effective relationships with customers (Computimes Malaysia, 1999). Organizations tend to shift from quick transaction-based sales methods to methods that focus on building real relationships (Jamieson, 1994). The customer relationship management defined by Fayerman (2002) is a customer-centric business strategy that aims to improve customer satisfaction and customer loyalty by providing each customer with faster response and customized services. As Buttle (2003) said, CRM represents different things in different people and in different situations. Some people refer to CRM as customer relationship management; others refer to it as customer relationship marketing. Buttle (2003) pointed out that no matter what form we decide to use the term in, CRM is clearly a customer-centric business practice. What CRM really cares about is building customer relationships. These relationships can appear in different forms, such as business-to-business relationships, customer lifecycle, different customer segments, customer lifecycle value, and customer profitability (Rollins & Halinen, 2005). CRM is expected to transform organizations from management decisions that rarely consider customer needs to decisions based on customer activity and behavioral information (CRMGURU, 2002). Companies learn to establish better communication with customers in order to build brands and understand customers' potential needs (Winer, 2001). From a recent CRM perspective, organizations seeking sustainable development in today's competitive business environment need to transform their business strategy from a product-centric organization to a customer-centric organization. As Muther (2002) suggests, organizations should not only focus on quality and price differences, but also identify customer needs and provide innovative market services to stay ahead of competitors. Park and Kim (2003) further support this argument. They believe that organizations that primarily focus on acquiring and retaining more customer share than market share will do a better job in reducing costs. 3.2 Customer Relationship Management This section introduces theories related to customer relationship management within an organization. This section is organized as follows: First, we introduce the theory of CRM planning/improvement. Second, we discussed the theories dealing with CRM implementation, and finally, we provided an understanding of the theories related to channel management. 3.2.1 Ten ways to improve your CRM According to Bland (2003), CRM is a business strategy that requires planning, commitment and change. Any employee who has any contact with customers should be regarded as a "CRM user" . In CRM, software products or marketing activities cannot be successful. However, technologies such as phone systems that can "pop up" customer information, websites that store customer preferences and provide access to account information, and telecommunications services that can be used to send customers "Happy Birthday" can be used in any way that helps solve the problem. Place to use. CRM strategy. The following are ten tips provided by Bland (2003) to help improve or start a CRM program. 1. Know what CRM is and not: CRM is about marketing and customer knowledge, not about great software. The core of CRM is understanding your customers and how they want to interact. The scope of CRM is wide, but it can also be as simple as managing activities and keeping promises. 2. Top management participation: CRM defines what happens in your company, so the CEO can work in multiple areas with more business intelligence. The commitment of top management is a key factor that will have a positive or negative impact on the CRM plan. In other words, "If the CRM strategy is simple and approved by the CEO, it may work." 3. Educate and engage employees: The biggest problem with CRM is that it requires employees to capture more data to do more things. Some employees don't like it to slow them down, and if they don't see value, they will reject it. Organizations must excite users and start with a few key supporters. Employees need to be confident that if they put information into the CRM system, they will get value from the system. 4. Integrated CRM system: different people in the company have different views on the same customer. The marketer may think "he has been buying, we need to continue to sell to him", while the financial manager thinks "he has not paid the bill, we must stop selling to him". This is why organizations need to identify customers and need to integrate CRM systems. In addition, if customer data cannot easily reveal which customers bring value, once the information is realized, it will be too late to adjust marketing practices. A successful CRM is access to the right information in real time. Read Less