customer relationship management 6
Topic 2: Customer Relationship Management
How can a customer relationship management system benefit an organization?
Just do response each posted # 1 to 3 down below only.
Posted 1
Before the digitized world took over almost all aspects of life, including the way we shop, consumers were accustomed to a very personalized shopping experience. The owners and employees recognized customers by name and knew their preferences and wants. (Rainer & Prince, 2018,p.309). That personalized touch with the consumer made it more comfortable for the shopper and it increased the likelihood of that consumer to maintain loyal to the store they frequently visited. All of that has changed now, for the most part, so companies were facing a new challenge. A new way to evolve in hopes to maintaining that personal shopping experience in this new day in age. With the change of times, also came a new management system, the customer relationship management system. This system was implemented in hopes to return to a more personal style of marketing. Treat different customers differently because their needs differ and their value to the company may also differ. (Rainer & Prince,2018,p.310). A customer relationship management system can benefit an organization by improving sales and or services based on a complete history of its customers, identifying the most profitable customers and providing them with the highest level of service. Another benefit from a customer relationship management system is that it understands and identifies the needs of those customers, it helps to build a relationship to the company and thus making the shopping experience once again more personalized.
Posted 2
According to the book and the readings of this course, Customer relationship management (CRM) is an operations strategy that integrates information technology into a firm’s marketing mix. CRM primarily manages a company’s communication with its sales prospects as well as its customers CRM is a company-wide strategy where all the departments that deal with customer interactions are connected through CRM’s technological processes, where each department works in synergy with the others to minimize its costs and increase its profits. CRM aims to highlight the importance of not only retaining old customers but enticing new ones, as well as the strategy, takes its roots from the notion that “the success of the organizations in achieving their goals depends largely on the efficiency of management of its relations with customers.”
However, CRM can be integrated by crucial account management (KEM) to ensure that the organization has a technological advantage over its competitors to maintain its top priority customers” (Rainer & Watson, 2014). For a critical account manager to successfully integrate CRM into the mix, it is necessary that the organization does not only have the required IT infrastructure but also has employees who can successfully interpret the data collected and that the business architecture is such that the results generated from the technology can be implemented efficiently as well. In lieu of this, it is essential that the key account manager does not only invest in a CRM software, but also in technologically savvy employees as the relevant human capital “(1) enables companies to manage the technical and business risks associated with their investment in CRM programs, (2) is based on accumulated experience that takes time to develop, and (3) results from socially complex processes that require investment in a cycle of learning and knowledge codification” (Rainer & Watson, 2014). †Relationship effectiveness also increases when activity intensity of the organization as well as activity re-activeness increases, and esprit de corps plays a significant role here in that when people find common goals to work towards, and it becomes easier for organizations to work together.
Posted 3
Personalized information makes for better customer experience. CRMs help companies
by proving the data to tailor their service or product. The biggest
impact of a customer-focused business model would be customer retention.
Although, business organizations expect a portion of “customer churnâ€,
the ideal situation is to maximize the amount of customers they are able
to keep. Analytical CRMs are extremely valuable for retention efforts.
Understanding a customer’s needs at every level of interaction is very
beneficial and gives organizations the advantage it needs to
continuously compete in their market and prepare for what’s next.
