Introduction
Maintaining the customers and searching for the potential clients can be the most desirable framework in a business. The system and the daily operation of the firm which focuses on the maintaining the relationship resembles in the attempt of the firm to success in the industry with the application of customer’s tastes and preferences. Due to the challenges in terms of globalization and economic changes, the position of business changes as well. In addition, maintaining the trust of the existing customers and finding looking for potential market can be troublesome. Still, many business leaders believe that the market needs to see the connection between the business retailers and the customers. Therefore, the creation of the customer relationship in the management is a great step for every business.
Customer Relationship Management (CRM)
Organizations in all over the world understand the meaning of CRM that stands for the Customer Relationship Management which focuses on the needs of their customers. The creation of CRM in every organization can be successfully implemented with the aid of the technology. CRM can be an organizational factor that ensures the revenue through maximizing their customers and can push the continuing effort of the organization to develop their products, operation process, services, etc. (Wahab, Noor, and Ali, 2009). Globalization challenges the firms and tends to establish strong approach to maintain and retain the customer effectiveness. The impact CRM in the firm can be very crucial to the success for it is qualified as the solution in long-term goal of their business (SAP, 2002; Liu, 2007).
CRM, as designed to focus on the competitiveness, is also applied in government and their associated agencies to coordinate the services across the multiple customers. CRM practices bound to explain the key areas in terms of customer insights, customer offerings, customer interactions, organization performance, and networks or channels. The development in the CRM is currently recognized as the key intelligence in business’s problems (Accenture, 2002).
Importance of CRM
In retail market, CRM is important to deliver the profitability of the business that is mostly based on paying the effort in high-valued customer (Ponsonby, 2002). Accordingly, the application of CRM creates an impact particularly on the business to understand the customer behavior as to their reaction in the challenges presented in the economy. Based on the effectiveness of CRM, customers can request specialized products (for manufacturing businesses) and high quality of service (for service-focused businesses). Such requirements are important to increase the effectiveness of the business and reinforce the confidence in competition and within the industry. For example, the application of CRM in banks can both applied the strategic approach in products and services for the continuous growth and improvement of banking business. In addition, through the use of CRM, every organization can review their businesses past performances and consult the customers as their step in crafting potential future plans (Ernst and Young, 2010).
In the application of the CRM with the technology, the organization can find some trouble because of the lack of training among their staff, lack of technological support, inappropriate market target, and other minor problems. Other than that, the adaptation of CRM in the every organization proposes to be part of the internal function of the management to help the business leaders create sound decisions. The combination of CRM and IT can be described as another modernized communication, but it is more than just ordinary software. The essence of building the link between CRM and IT is to appropriate touch the customers without any delay. The application of CRM deals with the monitoring of the current and future needs. This is a great innovative approach to every organization for it continuously adds value on their customers and corresponds to their market effectiveness. Although, it is difficult to pin down directly the demand of the customers, it still believed that the strong relationship between the company and their clients can help dictate the flow of the competition as well as influencing the customers’ buying and decision behaviors.
Conclusion
CRM is the firm’s way in thinking systematically about the needs of the customers and how the needs can be successfully met. The impact of CRM in every business positively increases the profitability in the industry because the main concept of CRM is focused in maintaining the customer effectiveness of the organization in the market. In a modern way, the CRM can be applied with the support of information technology to broadly touch the customers across the globe.
References:
Accenture (2002) “Customer Relationship Management--A Blueprint for Government”, The Government Executive Series, pp3-20, Accessed 21 May 2010, from www.accenture.com
Ernst and Young, (2010) “Understanding Customer Behavior in Retail Banking –The Impact of the Credit Crisis across Europe”, EYGM Limited, Accessed 21 May 2010, from http://www.ey.com/Publication/vwLUAssets/Customer_behavior_report/$FILE/Customer%20behavior%20report.pdf
Liu, H., (2007) “Development of a Framework for Customer Relationship Management (CRM) in the Banking Industry”, International Journal of Management, Vol. 24, No. 1
Ponsonby, R., (2002) “Customer Relationship Management – the Importance of Market Segmentation and Appropriate Measurement”, International Business Machines (IBM) Corporation Global Services, Accessed 21 May 2010, from http://www.themarketingprocessco.com/document_downloads/march2002seminar/CRM_the_importance_of_segmentation_and_appropriate_customer_measurement.pdf
SAP, (2002) “CRM for the Banking Sector”, Accessed 21 May 2010, from http://www.sap.com/southafrica/industries/banking/pdf/BWP_CRM_banking.pdf
Wahab, S., Noor, N., & Ali, J., (2009) “Technology Trust and E-Banking Adoption: The Mediating Effect of Customer Relationship Management Performance”, The Asian Journal of Technology Management, Vol. 2, No. 2, Accessed 21 May 2010, from http://www.sbm.itb.ac.id/wp-content/uploads/2010/01/Technology-Trust-and-E-Banking-Adoption-The-Mediating-Effect-of-Customer-Relationship-Management-Performance.pdf
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