Role of Information System in Customer Relationship Management Essay Example for Free
Customer relationship management (CRM) is a combination of organizational strategy, information systems, and technology that is focused on providing better . Customer relationship management, or CRM, consists of all aspects of interaction Sales force automation, or SFA, is a type of information systems used to. This report explores CRM' s implication on information, business strategy, as well as an issue which will influence successful implementation of CRM. Furt.
It is for this reason that a successful business need to set correct expectations since it helps in retention of customers. Develop a customer philosophy that will direct the way employees interact with clients. The philosophy developed should be able promote respect and constant appreciation of customers. This is a key component in customer satisfaction and retention. Lastly, develop a quick response time whenever there is a blame game in business transactions.
Effective communication and admittance of a mistake can really yield marvelous results in the long term. This should be followed with a communication on what you plan to avert similar mistakes in future. Customer Service System Customer service refers to various business practices aimed at providing services to clients during and after a business transaction.
These services are aimed at building customer satisfaction and retention. Customer service system refers to blending of procedures, people and technology with a view of serving customer needs in a way that will promote profitability and achievement of business objectives. It is important to note that implementation of an effective client service system may be quite difficult when all the stake holders does not understand its importance. In addition, all the stake holders should be willing to buy into using the system otherwise its contribution to the business may be futile.
There are numerous reasons why organizations need to buy into the use of a client service system. Such a system further promotes customer loyalty hence more profits owing to their high life time value in the business. A long life time value of a customer promotes profitability in an organization since the business will not seek to secure new customers but instead will focus their attention and resources towards further expansion of the business using the current customers.
Implementation of an effective customer service system will help solve communication of bad experiences by discontented customers to potential and existing customers. Such a system helps an organization to quickly adapt to global changes in the corporate world.
A client system provides valuable information about these competitors. These demands should be addressed adequately through proper coordination among various departments.
This is only possible with the use of a common client service system. The process seeks to devise managerial methods to curb existing and potential competition.
Database of Customer Relationship Management Strategies
It is management tool that helps an organization focus its energy by making sure that all parties and shareholders are geared towards achievement of goals and objectives set for the company. It further assists an organization adjust accordingly with the changing corporate environment. This is meant to guide and shape the way in which organizations do its operations. The primary goals of CRM is to better understand the customer, attract new customers, retain current customers through better customer experience, increase profitability by winning over new clients, and reducing customer management costs.
Information is collected from all data sources within an organization to present the company with one, holistic view of each individual customer in real time.
Role of Information System in Customer Relationship Management Essay
This allows customer service employees the tools required for the best marketing strategies and customer relations in areas such as customer support, sales, and marketing. The following are important CRM strategies that are essential for business-customer relations. CRM analytical tools can be used to benefit many customer-related activities, such as determining if an ad campaign is successful or if customers are satisfied with certain products or services. With CRM analytic, companies can also used advanced reporting software to show trends and build reports.
The market is divided into groups of individual markets with similar needs or wants that a company divides into distinct groups which may want different products or services. Markets can be divided by various criteria, such as private or public. Customer-based segmentation can be developed on a product-specific basis in order to provide a match between a customer and product or service.
Process Redesign Business process redesign is the analysis and design of processes with and between organizations.
Generally, the processes have two important characteristics. These include both internal and external customers and occur between or across organizational boundaries.
The primary objective of process redesign is to take advantage of new technologies, such as multi-media, the Internet, and wireless telecommunications by rethinking business practices. This can lead to great improvements in competitiveness, productivity, profits, and customer service. Companies that adopt this approach are called customer-centric, rather than product-centric. To be customer-centric, companies need to collect and store meaningful information in a comprehensive customer database.
Customer Relationship Management - strategy, organization, system, model, company, business, system
A customer database is an organized collection of information about individual customers or prospects. The database must be current, accessible, and actionable in order to support the generation of leads for new customers while supporting sales and the maintenance of current customer relationships.
Smart organizations are collecting information every time a customer comes into contact with the organization. Based on what they know about the individual customer, organizations can customize market offerings, services, programs, messages, and choice of media. Also, this database should be available to any organizational units that have contact with the customer. CRM has also grown in scope. CRM initially referred to technological initiatives to make call centers less expensive and more efficient.
Now, a lot of organizations are looking at more macro organizational changes.
Organizations are now asking how they can change their business processes to use the customer data that they have gathered. CRM is changing into a business process instead of just a technology process.
Use of the term CRM is traced back to that period. In the mids CRM was originally sold as a guaranteed way to turn customer data into increased sales performance and higher profits by delivering new insights into customer behaviors and identifying hidden buying patterns buried in customer databases.
Instead, CRM was one of the biggest disappointments of the s. Some estimates have put CRM failure rates as high as 75 percent. But more than a decade later, more firms in the United States and Europe are appearing willing to give CRM another try. A study by the Gartner Group, found 60 percent of midsize businesses intended to adopt or expand their CRM usage over the next two years. Partially the renewed interest is due to a large number of CRM vendors that are offering more targeted solutions with a wider range of prices and more accountability.