Crm

Technology has helped fuel the growth of CRM strategies. The evolution of CRM is moving forward with e - business evolutions. eCRM is the new strategy of customer relationship management in the Internet era. This paper addresses the basics of CRM and what is eCRM, explains the relationship between technology and eCRM and introduces the 4 principles of eCRM.

Introduction

The growing waves of merger and acquisition in the international business arena, coupled with broader use of e – technologies, have contributed to increase in the scale of business relationships and also to exponential increase in customer data. It is obvious that who is able to use the data pro – actively, can make a dramatic difference. To exploit business opportunities, more and more companies are rapidly implementing integrated Customer Relationship Management (CRM) systems to make their business processes more customer – focused.

CRM is nothing but the evolution of the business processes. Moreover the definition of CRM will evolve and change over time. It will encompass new components with economy development.

Basics of Customer Relationship Management (CRM)

Defining CRM

CRM stands for Customer Relationship Management. It has been defined in a variety of different ways. For some, CRM is a way to identify, acquire, and retain customers. For others, it is a way of automating the front office functions of sales, marketing, and customer service. For some vendors, whatever their current product may be, that is CRM.

This diversity of definitions is a result of differences in perspectives. The first is based on a business perspective of increasing competition that is driving companies to focus on their customers. The second is based on the relatively new phenomenon of the integration of previously separate applications such as Sales Force Automation and Customer Service Support into Enterprise Applications. The third is a result of software vendors repositioning their information technology products and services under the CRM umbrella, to take advantage of the fast growth of the CRM market.

What is CRM? "CRM is a comprehensive approach which provides seamless integration of every area of business that touches the customer – namely marketing, sales, customer service and field support – through the integration of people, process and technology, taking advantage of the revolutionary impact of the information technology. CRM creates a mutually beneficial relationship with your customers. It is fundamentally cross-functional, customer – focused business strategy"(Fulk& Whang, 2000).

CRM is in fact about creating value for customers. (Cash, 1999) CRM itself is not a technology, even though technology is required to enable CRM. Technology makes it possible to integrate the large volumes of customer information that are required for CRM, and to efficiently transform this information into useful knowledge. Technology also enables a company to interact with its customers in ways that provide value to the customer, as well as makes it easier for the customer to do business with them. However, leveraging this customer knowledge to make better business decisions and to be responsive to customers remains the responsibility of individual managers and workers at all levels within the company.

Components of CRM

GOAL APPLICATION

Customer acquisition SFA (sales – force automation) and marketing

Customer retention Data warehousing and analytical tools; customer service: call center and contact center

Increasing customer value Marketing automation and campaign management for cross – selling and up – selling; data warehousing and analytical tools

(Leon, 2001)

CRM in the Internet Era

Customer relationships become even more important in today's Internet marketplace. The Internet has enabled a dramatic reduction in the cost of transactions and interactions among people and businesses, which in return has created a new set of expectations among customers. (Norris, 2000) Online customers expect shorter sales cycles, personalized information, quicker resolution of service issues, and added value at each stage of the transaction. To maintain positive customer relationships, business needs to meet and exceed these expectations.

CRM, therefore, must be a well – integrated effort, using the Internet to shorten time and distance across the supply chain and to customers, creating new levels of speed and efficiency in business. Companies that do this successfully