Information Systems Increases Revenue by Building Customer Relationships

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March 17, 2012 Information Systems Increases Revenue by building Customer Relationships According to a research project completed by CFO Research Services, a Senior Vice President of a large U.S-based global services firm stated, “The CFO should always allow IT organization to innovate, to experiment, and [should] understand that there is financial risk associated with innovation. Not every IT investment will have an ROI, but allowing IT to be thought leaders is imperative in today’s evolving technology landscape.” Therefore, technology and IT is central to building relationships with customers’ thereby increasing revenue for the company. The research project also noted that business intelligence, mobility, and cloud computing will…show more content…
For example, when a customer is transferred from one customer service representative to another the CRM system would transfer all customer information and conversation notes so that the employee does not have to waste time asking all the same questions that the first representative asked before being able to attempt to help the customer. However, CRM’s primary focus is to create higher revenue by helping companies build a larger percentage of loyal customers through the use of building trust and relationships with their current and future customers. Acquiring new customers is extremely costly for a company. Surveys have shown that it could cost a company six times more to acquire a new customer than to keep a current customer. Not only that, but if a company is able to build a loyal customer base those loyal customers are worth much more than their own personal purchase volume. A loyal customer is likely to share their experience with others about companies that they are very loyal to and have a close relationship with. Therefore, the company is able to acquire repeat sales to the current customer and able to obtain new customers without any additional cost required to try to attract a new sales and customers. In addition, it has also been shown that it is 16 times easier to sell to an existing customer than it is to sell to a new
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