Customer Relationship Management Process : A Dynamic Theory Of Exchange Relationships

Chen, I, J. and Popovich, K. (2003) Understanding customer relationship management (CRM). People, process and technology. Business process management journal, Vol. 9 No 5. Retrieved from http://cis.csuohio.edu/~ichen/CRM.pdf

For most business owners, they would all be in agreement and say that the connection they have with their customers is very important to them because it decides if the business is going to be a great success, or if the business is going to take a nose-dive. As a result, of an increase in customer standards and financial difficulties most firms no matter how big they are, they are taking a second look and thinking about how technology can help them to develop healthier and stronger relationships, and how to capitalize on their business. The best way to handle this situation is to choose a good customer relationship management system this can help a business they can become more efficient while maximizing their productivity. However, CRM systems could only be used by enterprise organizations; that has all changed this system is now being used as an influential factor when determining how well an organization will do (Saab, 2011).

An effective Customer Relationship Management (CRM) program can be used to identify, retain, satisfy and obtain customers by using technology to optimize strategies for understanding customers’ needs to manage business interactions with current, former, and prospective customers. Additionally, CRM also enables companies to maximize internal, external, marketing and customer service operations to better address the needs of the customer building a better relationship with customers that a more profitable. (Ahmad & Buttle, 2001)

The CRM system contains positive attributes, but the implementation is risky. Despite the risks that are involved, establishing a strong team that can help the system work effectively and efficiently will improve the company’s key performance factors. Communication amongst the administration that

Therefore, there is an overwhelming consensus among scholars and business practitioners that IT is the key success factor for CRM implementation. It is argued that IT allows achieving wider market coverage with less entry costs and increased marketing effectiveness (Exhibit 1) (Gamble, Stone, and Woodcock, 1999).

Today, customer relationship management is very important to the business world. Most of the companies established a department and the programs to manage their relationship with the customers. Customer relationship management (CRM) is a business strategy which designed to help a company to understand and look forward to the needs of its potential and current customers (Anderson & Stang, 2000). Customer data is being collected in several different areas of the company, stored in a central database, analyzed, and distributed to key points (Anderson & Stang, 2000).The business world once was “product-centric”, the companies just provided what they could produce. However, it is now become “customer-centric”, they provide products and service

This project management plan entails the development of CRM software for use in improving business process. Customer relationship management (CRM) is defined by LaPlaca (2004,p.463) as the management of a relationship which is mutually beneficial from the perspective of the seller. The term

Wong, A. and Sohal, A., (2003). A critical incident approach to the examination of Customer Relationship Management in a Retail Chain: An exploratory study, Qualitative Market Research, Vol. 6, pp.

Finally, Frederick Reichheld’s research indicates the reliance on automated CRM programs is based on “A single flawed assumption: that CRM is software that manages customer relationships for you. It isn’t. Managing customer relationships is bundling

CRM: Customer Relationship Management (CRM) refers to the concept of moving ownership of the customer up to the enterprise level and away from individual departments and channels. These departments are responsible for customer interactions, but the enterprise is responsible for the customer.”

Moreover, customer retention and customer loyalty are major benefits of CRM systems to the organization as it is working to retain existing customers by managing relationships with them will generally increase revenues and reduce costs. Positive outcomes can include a larger share of a customer’s businesses as a result of activities such as cross-selling and up selling. When CRM works, it helps to solve this problem by meshing everyone together and focusing the entire organization on the customer. CRM requires commitment and understanding throughout the company not just in marketing as it adds to a sense of expectation and loyalty being instilled within the consumer and the development of a relationship between company and customer that competitors find hard to break.

In order to establish a suitable CRM system and increase the success rate, understanding CRM processes is especially important. Building CRM system, there are many works need to do(). Firstly, the target customer market should be identified. Different customer strategies are focused on different target customer markets based on their profitability. Then, firms set customer objectives, for example, acquire customer satisfaction and loyalty. After that, the leaders and managers should support and commit the implementation of a CRM system. At the same time, when companies change their targets, a plan about changing

Most people believe that CRM is just a system that will run their business without making any efforts which is totally wrong. The CRM is a strategy that is run by people to acquire, manage, select, grow and retain a strong relationship with the right customers with the best long-term profit potential. This cannot be done with a CRM system without a good strategy that puts the employees on the right track.

The paper on CRM roadmap introduces ten articles and describes the essence of each of those. The author presents eleven propositions on the known facts and potential pitfalls of CRM and also lists six recommendations [1]

Customer relationship management (CRM) is widely implemented and centralized system which offers a place for interaction under a company. An employee can handle again the repeated problem which occurred in the past by re-investigate it. Besides, CRM provides a place to identify what customers wants. Employees can track customer’s expectation by their feedback and communication that can improve their buying experience and stay interact with customer in order to understand their true needs.CRM also has ability to let the company see the customer interaction in clear picture. Different customers from different segments require different products and services, but this complex situation can handle well by CRM. Furthermore, CRM provides quality and efficiency system in the company management that helps company achieves their success by building long-term customer relationship.