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A proposed Framework for CRM On-Demand System Evaluation

Evaluating CRM and Microsoft Dynamics Online

Written by C. Özcanli

Paper category

Master Thesis


Computer Science




Thesis: CRM Customer relationship management (CRM) was introduced in the United States in the mid-1990s and has since developed into a globally recognized concept. [4] CRM has multiple definitions. According to the editors of CRM Magazine, CRM is defined as: "CRM, or customer relationship management, is a company-wide business strategy designed to reduce costs and increase profitability by consolidating customer satisfaction, loyalty, and advocacy. True CRM brings together information from all data sources within the organization (and, where appropriate, from outside the organization) to provide a holistic view of each customer in real time. This makes it customer-oriented in areas such as sales, customer support, and marketing Of employees can make quick and wise decisions on everything from cross-selling and up-selling opportunities to targeted marketing strategies to competitive positioning strategies." [2] People can refer to the following CRM definition for simpler thinking: "Get , Retention, and cooperation with selective customers to create excellent value for the company and customers. The comprehensive strategy and process." [5] The CRM framework is divided into three basic stages. The first stage is to increase revenue by retaining existing customers called customer retention in the literature. This means providing better services to existing customers and providing them with activities based on their personal data to maximize revenue. Companies usually focus on this stage because the cost of selling to new customers is 6 times that of existing customers. [1] The second stage is to integrate information services, serve customers in a more effective way, and create supplementary products for them, called customer extension. This stage basically means knowing each customer very well and providing services to them without repeating their personal information while providing them with new products. Finally, the last stage includes defining sales procedures and efficient processes to create more sales channels to acquire new customers, which is called customer acquisition. In this way, more employees will devote themselves to sales and increase the company's revenue, while gaining new customers. 3.1.1 The evolution of CRM It is important to investigate how the CRM concept has evolved over time to understand that it has reached the level it is today. It will allow the audience to have a clearer understanding of how CRM adapts to changing market trends and technologies, and act as a promoter of CRM development. The figure below visualizes the evolution of CRM. In the early stages of CRM, CRM was only conceived as storing customer information. Departmental CRM is approaching the end of the 20th century. The integration of data within the CRM system will cause the overall departmental CRM solution to become the new focus of research and development. Therefore, new CRM solutions emerged, namely "sales force automation, marketing automation and customer service automation" [6]. These three concepts now represent the core of CRM. The creation of these concepts and data integration led to more effective communication between departments, more time to work with customers, less time to generate manual reports and identify relationships in existing data. However, the magnitude of the data will cause problems such as the classification of important data and less important data. Therefore, the processes of marketing, sales and customer service automation have also become necessary to automate. Process automation is not easy for companies. IT needs to investigate existing processes, staff training and time, and the high costs incurred as a result. These steps led to a concept used today, namely "people, process, and technology" [6], which refers to the participants that need to be considered for effective implementation of CRM in departmental change management. The automation of sales department processes led to the creation of the Sales Force Automation (SFA) concept. The generation of manual reports, the wrong way of assigning employees to customers, the time spent on repetitive tasks, and the process training for sales staff are the main problems of the sales department [6]. These problems are solved through task automation and easy and fast access to information. As a result, SFA has brought better customer relationships, created efficient sales teams, and better sales management and transparency. Marketing departments used to identify potential customers by looking at simple lists and databases of individual CRM stages. Reviewing the event and analyzing the customer's response during the event leads to different opportunities, which are realized as an overall marketing solution, namely marketing automation (MA). This automation has realized revolutionary functions such as lead and event management, budget planning, customer analysis, and lead management [6]. Therefore, MA shortens the activity time, stable relationship with potential customers and better management control. Although the customer service center is considered to be the cost center of an enterprise, it plays an important role in customer relationship management. Companies spend time minimizing service center budgets while maximizing the quality of service customers receive. Have a unified customer information panel where all customer service representatives can easily access demographic data. Read Less