Report on Factors Influencing Customer Relationship Management


Introduction
In the twenty first century, with the rise of capitalization, globalization and the increase of overall consumption of products, businesses have started treated their consumers with respect and make a lot of efforts to attract and retain them. This process involves pleasing the customer with benefits and offers sot that the customer feels like he/she is getting a special treatment from the company which is regarded as a gimmick at times but it has become an integral part of marketing processes and techniques implemented by companies and despite that fact, it is an elaborate effort to gain a sustainable competitive advantage for the company. (Mohammed, n.d.) A thorough outlook of Customer Relationship Management and the key factors to achieve a success in that aspect is a necessary step to gain insight on what the companies do to excel and what future companies ought to take care of.
Understanding Customer Relationship Management
In the business arena, considering the factors which increase sales, the focus has shifted from products to customers because it is frequent and common that companies have identical products or services and in some cases it is the fact that they have the same product to sell at times and to have success in that aspect it becomes crucial to focus on customers in convincing them to buy the product from you. (Vazifehdust et al., 2012) CRM is basically a customer focused strategy which is not a unique or exclusively modern concept but it has its roots in a concept known as Relational marketing which explains why there should be emphasis on customers and how it is efficient to maintain an old customer rather than developing a new one. CRM is a cultivated approach established on keeping up a positive relationship with customers. It as approach based on tenets like: customers should be managed as paramount assets, their necessities differ according to price sensitivity and other factors and it is also notable that by understanding customer’s buying behavior, companies can prioritize the value of their customer portfolio. (Chen and Popovich, 2003)
Mohammed, M. (n.d.). Customer Relationship Management (Telecommunication Industry) Comparison Between (Airtel) And (Zain).
Chen, I. and Popovich, K. (2003). Understanding customer relationship management (CRM): People, process and technology. Business process management journal, 9(5), pp.672–688.
Vazifehdust, H., Shahnavazi, A., Jourshari, M. and Sharifi, F. (2012). Investigation Critical Success Factors of Customer Relationship Management Implementation. World Applied Sciences Journal, 18(8), pp.1052–1064.
Influential Factors affecting Customer Relation Management
Culture
The culture of the company represents its legacy, unspoken rules, and customary traditions that influence behaviors and it belongs to relationship management which needs a strategic change from a process which was initially based on products to a process based on customers. Cultivating an appropriate and suitable culture is a prime focus for implementing the strategies of Customer Relationship Management. For recognizing customer values and needs, the departments related to marketing should realize that for building strong relationships with customers which relies on the effectiveness of the value added services.
Human Resource Management
Developing and imposing an improvising a Customer Relationship Management Strategy suggests the involvement of a lot of employees from a lot of different department like sales, services, business analytics, IT department, marketing and also a wide array of managers which will unite and form a CRM strategy. Employee involvement means that the employees have to delve into their work design, and if they are not involved in the process, then it will lead to an incomplete understanding of the requirements of the strategy. (Coltman, Devinney and Midgley, 2011) The important factor involved in the training of employees of employees using proper CRM systems to get familiar with CRM concepts and their selection should be based on the willingness and communication skills of the employees enrolled and it is also an important point to be noted about successful implementation of CRM.
Active Involvement of Customers in the End-Product
There is always a risk of alienating or dissatisfying the customers every time a product or service is changed or improved which was actually meant to serve the very same people. It is critical to generate feedback from the customers and conduct surveys on what the customers want and what they dislike about the product because if the customer’s needs and wants and not tended to, it becomes a risk factor and there are higher chances of a product failing in the market. It can be executed by relying on the customer care executives by efficiently taking notes of customers and
Coltman, T., Devinney, T. and Midgley, D. (2011). Customer relationship management and firm performance. Journal of Information Technology, 26(3), pp.205–219.
demand and forming a proper picture regarding what the customers need or expect from certain products. (Chen and Popovich, 2003) There are many examples of companies establishing call center divisions handling customers from around the countries and taking suggestions and making adjustments to products. This suggestion is more convenient for implementation of products like softwares, apps, and personal care products than in products like cars. Careful and effective implementation of this solution will result in higher employee retention rate.
Alignment of Business and Information Technology Operations

While Customer Relationship Management is not directly related to technology, it is a very good means to achieve a higher understanding CRM which can be done by creating operational structures. Information Technology and managers in a corporate atmosphere are aligned by a set of well-defined objectives. While generating input from customers and implementing the processes of CRM, the basis of expertise in the IT department is important for proper execution of the CRM objectives. It is also very close to the Human Resources Management process of training the employees with the help of CRM systems as the systems are developed by the IT department, they also need to be fairly familiar with the workings of processes co-ordinate with Customer Relationship Management processes. (Mohammed, n.d.)
Continuous Improvement
Organizations must set measurable and to-the-point objectives and pivotal progress indicators to evaluate the progress of the work and the quality of the workers. Continuous generation of feedback related to customers and constant evaluation is integral to develop a continuously perfected product which modifies according to the customer’s requirements.
Conclusion
The approach of focusing on customers is used since a long time as the phrase “The Customer is the King” but to construct a well-formed process around developing CRM is a necessity in the modern corporate culture and it has been long due. The well rooted knowledge of the concepts
Chen, I. and Popovich, K. (2003). Understanding customer relationship management (CRM): People, process and technology. Business process management journal, 9(5), pp.672–688.
Mohammed, M. (n.d.). Customer Relationship Management (Telecommunication Industry) Comparison Between (Airtel) And (Zain).

will help business to effectively cater the needs of the consumers and prove to be consistently successful.
Bibliography

Berman, U. and others, (2009). Building a CSF framework for CRM implementation. Journal of Database Marketing \& Customer Strategy Management, 16(4), pp.253–265.
Chen, I. and Popovich, K. (2003). Understanding customer relationship management (CRM): People, process and technology. Business process management journal, 9(5), pp.672–688.
Coltman, T., Devinney, T. and Midgley, D. (2011). Customer relationship management and firm performance. Journal of Information Technology, 26(3), pp.205–219.
Kamalian, A., Ya’ghoubi, N. and Baharvand, F. (2013). Explaining Critical Success Factors for CRM Strategy (Case Study: SMEs in Zahedan Industrial City). International Journal of Academic Research in Business \& Social Sciences, 3(5).
Mohammed, M. (n.d.). Customer Relationship Management (Telecommunication Industry) Comparison Between (Airtel) And (Zain).
Vazifehdust, H., Shahnavazi, A., Jourshari, M. and Sharifi, F. (2012). Investigation Critical Success Factors of Customer Relationship Management Implementation. World Applied Sciences Journal, 18(8), pp.1052–1064.

Skills

Posted on

March 7, 2018

Submit a Comment

Your email address will not be published.