Add Thesis

Customer Relationship Management (CRM)

A multiple case study: Analysing the critical factors of CRM implementation

Written by Anonymous

Paper category

Bachelor Thesis

Subject

Business Administration>Management

Year

2012

Abstract

Bachelor Thesis: Customer relationship management CRM is a broad topic, so the definition differs between authors. CRM plays a role in integrating corporate strategy, business methodology, and technology to achieve a number of goals for companies that want their operations to be customer-oriented (Motiwalla and Thompson, 2009). CRM also provides a positioning for customers and the company itself. It combines sales, marketing, and customer service to create and increase value for the company and its customers (Su, 2010). Both definitions indicate that CRM is integrated into the company and brings value to it and its customers. CRM is said to be a technology management tool that can be used to acquire customer knowledge and maintain and increase profitable relationships, which enables companies to better understand customers and how to create more value for them (Raman et al., 2006). Based on the understanding of what CRM is, it reflects that CRM focuses on customers and their satisfaction, so all company activities are customer-oriented (Mandic, 2011 and Motiwalla and Thompson, 2009). In addition, the core of CRM is the company's ability to collect customer data to design and implement customer-centric strategies to enhance the depth and length of their relationship with the company (Kumar et al., 2011). The researchers explained that the purpose of CRM is to understand the customer as much as possible. It can help companies provide customers with better, more suitable and higher added value. In addition, the company needs to be able to create a win-win situation, which means that the company adds value to its customers, and in return, they will remain loyal (Mandic, 2011). More comments on CRM goals are to identify potential customers, establish customer profiles, retain customer information, develop partnerships with customers, understand customers’ business and life, improve communication with customers, and provide customers with suitable products to help Customer problem-solving decision-making process. This shows that CRM is an important tool for understanding customers, storing information about them, and providing them with value (Valentim et al., 2011). 2.2. The key factors of CRM implementation CRM is one of the basic and most critical elements of the marketing concept (Mandic, 2011). From the perspective of business strategy, CRM is to obtain long-term competitive advantage by providing customers with value and satisfaction, and extracting business value from the exchange. To complete the communication and build a good relationship, many factors need to be considered. In the following sections, this study describes four key factors for CRM implementation. 2.2.1. CRM Process and CRM System CRM Process Companies need to understand that CRM implementation needs to be customer driven rather than technology driven. Therefore, CRM implementation should involve people, processes and systems (Motiwalla and Thompson, 2009). The implementation of CRM is plagued by risks and high failure rates. Studies have shown that 55%-77% of CRM implementations fail, and more than 50% of companies investing in CRM consider it disappointing (Mandic, 2011 and Shanks et al., 2009). The company is skeptical of achieving financial performance gains from the CRM strategy, with an implementation success rate of as low as 20%. Explains that “These failures reflect that the implementation of CRM is too focused on a software package without in-depth understanding of the organizational environment and the cross-organizational environment Integration of culture, process, people and technology issues" (Ahearne et al., 2010, p. 19). 153). As mentioned earlier, CRM is a topic abroad, so the author has different definitions, which are also applicable to the implementation of CRM. According to Segal (2009), there are seven steps when considering CRM implementation. 1. Business goals-need to be clear and measurable. 2. The impact on the process-the company needs to analyze the customer process. How do they handle customer contact information. How do they prepare for client meetings. How they communicate with customers. This can help companies identify areas that need to be adjusted, changed, or retained after CRM is implemented. 3. Expected benefits-Determine expectations for CRM. 4. Key functions-define what CRM needs to accomplish in order to achieve the target business goals. 5. Motivation and measurement-The company needs to be aware of the fact that employees need to be motivated. In the long run, employees need to understand how CRM will benefit the company and themselves. 6. Improve business processes-identify who will evaluate CRM and any increase (or decrease) that the company will receive from using CRM on a daily basis. 7. Which CRM-Evaluate the various CRM options on the market. Companies that consider these steps will eventually be able to better select and use CRMs that can bring value to the company (Segal, 2009). Jobber and Lancaster (2009) need to be considered in the implementation process. §The organization should be customer-oriented, and the CRM system should be organized around the customer. § Share customer information between different departments so that all customer-facing employees can access information from a public database. 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