Customer Relationship Management
A relative of mine works for a corporate firm on CRM (Customer
Relationship Management) software. He told me that their company is
doing well with their CRM initiative while most of the other
companies, using different software, are not achieving their goal of
customer satisfaction. That gave me a big click of interest towards my
research topic and I came up with a research questions as “How to
avoid CRM failure?” and how to choose a best CRM software vendor?
Customer Relationship Management is an interactive process for
achieving the optimum balance between corporate investments and the
satisfaction of customer needs to generate the maximum profit. CRM
refers to management of all interactions with customers in which the
enterprise indulges. Its main focus is on managing and optimizing
entire customer lifecycle. The customer lifecycle revolves around
marketing, sales and customer service.
According to Jill Dyche (2002), CRM promises to help companies get to
know their customers well enough to understand which ones to keep and
which ones they should be willing to lose and why -and how not to
overspend in the meantime. CRM also means automating many of the
business processes and accompanying analysis and saving precious time
in the bargain.
Today’s companies are interacting with consumers at unprecedented
levels and across different channels, such as E-mail, text chat, and
multi-functional call centers. Marketing, sales and customer service
are commonplace for CRM, so it is essential to acquire new customers
and retain those who have high value, since customers have real value
to the company’s success. And companies are pouring millions of
dollars into customer relationship management, but most initiatives
fail to deliver customer needs, so it is essential to have a proper
analysis of CRM before choosing a particular vendor. The objective of
good CRM is to increase the customer base by acquiring new customers
and effectively serving the needs of existing customers.
“The U.S. business-to-consumer e-commerce market is forecast to grow
from $41.7 billion this year to $163 billion in 2004, and companies
are realizing that customer relationship management will be a key
driver of this growth, says Robert DeSisto, a VP with corporate
consultant Gartner Group” (Jusko, 2001, p.12).
Gartner is a research and advisory firm focused on helping businesses
understand technology and drive growth. Headquartered in Stamford,
Connecticut, the company consists of 4,600 associates, including 1,400
research analysts and consultants, in more than 80 locations
Bad economic times have forced companies into a major spending
retrenchment, compelling them to put projects without immediate and
obvious returns on investments on the back burner; and though many
companies have begun implementing CRM solutions, they are still losing
customers in droves, begging the question of...