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For Useful Documents Like This and Lots of More Educational

For Useful Documents Like This and Lots of More Educational

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Published by simply_coool

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Published by: simply_coool on Sep 26, 2009
Copyright:Attribution Non-commercial


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Customer Relationship Management
Chapter # 1. Introduction to CRM1.1 Evolution of CRM
Customer Relationship Management (CRM) is one of those magnificent concepts thatswept the business world in the 1990’s with the promise of forever changing the way businesses small and large interacted with their customer bases. In the short term,however, it proved to be an unwieldy process that was better in theory than in practicefor a variety of reasons. First among these was that it was simply so difficult andexpensive to track and keep the high volume of records needed accurately andconstantly update them.In the last several years, however, newer software systems and advanced trackingfeatures have vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the price of newer, more customizable Internet solutions havehit the marketplace; competition has driven the prices down so that even relativelysmall businesses are reaping the benefits of some custom CRM programs.
1.2 In the beginning…
The 1980’s saw the emergence of database marketing, which was simply a catch phrase to define the practice of setting up customer service groups to speak individually to all of a company’s customers.In the case of larger, key clients it was a valuable tool for keeping the lines of communication open and tailoring service to the clients needs. In the case of smaller clients, however, it tended to provide repetitive, survey-like information that cluttereddatabases and didn’t provide much insight. As companies began tracking databaseinformation, they realized that the bare bones were all that was needed in most cases:what they buy regularly, what they spend, what they do.
Customer Relationship Management
1.3 Advances in the 1990’s
In the 1990’s companies began to improve on Customer Relationship Management bymaking it more of a two-way street. Instead of simply gathering data for their ownuse, they began giving back to their customers not only in terms of the obvious goalof improved customer service, but in incentives, gifts and other perks for customer loyalty.This was the beginning of the now familiar frequent flyer programs, bonus points oncredit cards and a host of other resources that are based on CRM tracking of customer activity and spending patterns. CRM was now being used as a way to increase sales passively as well as through active improvement of customer service.
1.4 IntroductionCustomer Relationship Management - CRM
The generally accepted purpose of 
Customer Relationship Management
(CRM) isto enable organizations to better serve its customers through the introduction of reliable processes and procedures for interacting with those customers.In today's competitive business environment, a successful CRM strategy cannot beimplemented by only installing and integrating a software package designed tosupport CRM processes. A holistic approach to CRM is vital for an effective andefficient CRM policy. This approach includes training of employees, a modificationof business processes based on customers' needs and an adoption of relevant IT-systems (including soft- and maybe hardware) and/or usage of IT-Services that enablethe organization or company to follow its CRM strategy. CRM-Services can evenredundantize the acquisition of additional hardware or CRM software-licences.The term CRM is used to describe either the software or the whole business strategyoriented on customer needs. The second one is the description which is correct. Themain misconception of CRM is that it is only software, instead of whole businessstrategy.
Customer Relationship Management
3Major areas of CRM focus on service automated processes, personal informationgathering and processing, and self-service. It attempts to integrate and automate thevarious
customer serving 
processes within a company.There are three parts of application architecture of CRM:
operational - automation to the basic business processes (marketing, sales, service)
analytical - support to analyse customer behaviour, implements businessintelligence alike technology
cooperational - ensures the contact with customers (phone, email, fax, web...)Operational part of CRM typically involves three general areas of business. They are(according to Gartner Group) a Enterprise marketing automation (EMA), Sales forceautomation (SFA) and a Customer service and support (CSS). The marketinginformation part provides information about the business environment, includingcompetitors, industry trends, and macroenviromental variables. The sales forcemanagement part automates some of the company's sales and sales force managementfunctions. It keeps track of customer preferences, buying habits, and demographics,and also sales staff performance. The customer service part automates some servicerequests, complaints, product returns, and information requests.Integrated CRM software is often also known as "front office solutions." This is because they deal directly with the customer.Many call centers use CRM software to store all of their customer's details. When acustomer calls, the system can be used to retrieve and store information relevant to thecustomer. By serving the customer quickly and efficiently, and also keeping allinformation on a customer in one place, a company aims to make cost savings, andalso encourage new customers.CRM solutions can also be used to allow customers to perform their own service via avariety of communication channels. For example, you might be able to check your  bank balance via your WAP phone without ever having to talk to a person, savingmoney for the company, and saving you time.

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