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Customer Relationship Management and its Implementation in E-Commerce

Customer Relationship Management and its Implementation in E-Commerce

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Published by ijcsis
In the new business gain customers is dedicated to its crucial position in the organization's goals and senior managers are well aware that their success in achieving the overall goals of the organization depends on satisfying our customers. Customer Relationship Management (CRM) includes all the steps that an organization to create and establish beneficial relationships with the customer takes. CRM is now a core is allocated to the business world. E-commerce, one of the issues raised the effect of information technology is expanding. Regarding the topic of CRM is important in E-Commerce and management, this paper shows the impact of CRM to improve relationships with customers in organizations and E-Commerce. Also, examines the general definition of CRM, goals, benefits, success factors and implementation of traditional and Electronic CRM.
In the new business gain customers is dedicated to its crucial position in the organization's goals and senior managers are well aware that their success in achieving the overall goals of the organization depends on satisfying our customers. Customer Relationship Management (CRM) includes all the steps that an organization to create and establish beneficial relationships with the customer takes. CRM is now a core is allocated to the business world. E-commerce, one of the issues raised the effect of information technology is expanding. Regarding the topic of CRM is important in E-Commerce and management, this paper shows the impact of CRM to improve relationships with customers in organizations and E-Commerce. Also, examines the general definition of CRM, goals, benefits, success factors and implementation of traditional and Electronic CRM.

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(IJCSIS) International Journal of Computer Science and Information Security,Vol. 9, No. 9, September 2011
Customer Relationship Management and itsImplementation in E-Commerce
Mohammad Behrouzian Nejad
Young Researchers Club, Dezfoul BranchIslamic Azad University, Dezfoul, IranMohamad.behrouzian@gmail.com
 Abstract
—In the new business gain customers is dedicated to itscrucial position in the organization's goals and senior managersare well aware that their success in achieving the overall goals of the organization depends on satisfying our customers. CustomerRelationship Management (CRM) includes all the steps that anorganization to create and establish beneficial relationships withthe customer takes. CRM is now a core is allocated to thebusiness world. E-commerce, one of the issues raised the effect of information technology is expanding. Regarding the topic of CRM is important in E-Commerce and management, this papershows the impact of CRM to improve relationships withcustomers in organizations and E-Commerce. Also, examines thegeneral definition of CRM, goals, benefits, success factors andimplementation of traditional and Electronic CRM.
 Keywords-Customer Relationship Management, E-Commerce, Information Technology, Organizations.
I.
 
I
NTRODUCTION
 Today customers play key roles in the development anddirection of the play activities of any organization.Organizations have found that understanding the needs andcreate value for customers the main factor for success in acompetitive world. Business culture has made progress inrecent years and consequently economic relations and thefundamental approach to customers are changing.Technological change and intense competitive environment hasmade conditions difficult for manufacturers and serviceproviders that can not be found for longer years high demandand stable or guaranteed markets were steady customers. So intoday's world using systems such as CRM is not only acompetitive advantage, rather it is considered a necessity fororganizations. One of the systems can have significantinfluence on organizational decisions is CRM (CRM). CRMpays to gather information based on current and future needsand demands of customers. CRM offers comprehensiveinformation about the supply chain management that help is ondecision making in order to estimate a step closer to customerneeds and designing an organization around customers. In factCRM is an important issue in today's global economy that willforce the organization to rethink the strategy forcommunicating with customers and capture a wide range of knowledge and identify loyal customers [1-7].II.
 
CRMRelationship management is a strategy for selecting andmanaging customers in order to create value in the long run.CRM System is a business strategy through software andtechniques that have been linked to helping to manage moreeffectively communicate with customers in direct or indirectchannels. CRM uses from one to one marketing to customizethe product to the customer which is a continuous process of data collection in all the time with the customer then convertsthis data into knowledge to communicate more effectively withcustomers in order to be more profitable. A key to success inCRM not having a lot of customer data, but how important istheir use by companies [8]. Another definition of CRM in [2]:Organizational approach to understanding and influencingcustomer behavior through meaningful communication in orderto attract customers, customer retention, customer loyalty andcustomer profitability. In fact CRM is a strategy working withthis approach which with customers commensurate withqualifications and their behavioral patterns establishedsustainable and long-term relationship that added value for bothsides. CRM strategy is usually based on a four-goal is theimplementation:
 
Encourage customers of other companies or potentialcustomers to first purchase of the company.
 
Encourage customers who first made the purchase tonext purchases.
 
Conversion of temporary customers to loyalcustomers.
 
Provide high quality services for loyal customers, sothat will be converted to the advertiser for thecompany.In fact CRM including all processes and technology that theorganization is working to identify, select, promote, develop,maintain and service the customer. CRM will enable managersthat use of customer knowledge to boost sales, service and itsdevelopment [4].
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(IJCSIS) International Journal of Computer Science and Information Security,Vol. 9, No. 9, September 2011
III.
 
CRM
 
H
ISTORY
 Perhaps can be summarized the history of topics related toCRM in the following three period [2, 8]:
 A.
 
 Handicraft production to mass production (during the Industrial Revolution)
Ford's initiative in employing methods of mass productionto replace manual methods of production, this is one of themost important indicators. However changes in productionpractices led to the selection of customers, in terms of productcharacteristics is reduced (compared to the first category), butthe products of the new method the price was lower on theCurb. In other words the chosen method of mass production theFord, increase efficiency and cost effectiveness the mostimportant goals were predicted.
 B.
 
 Mass production to continuous improvement (during theQuality Revolution)
This period began with the initiative of the Japanesecompany's continuous improvement process. This in turn led tolow production costs and higher quality products. This courseis being introduced with new methods of quality managementsuch as TQM, reached its peak.
 
But with the increasing numberof companies in the competitive arena and the culture tomaintain and improve product quality (through various qualitymeans), another competitive advantage for companies did notleading and work and will feel the necessity of finding newways to maintain a competitive advantage.
C.
 
Continuous improvement to mass customization
 
(duringthe Customer Revolution)
In this period due to the increasing expectations of customers, manufacturers were forced to produce theirproducts with low cost, high quality and high diversity. Otherwords, manufacturers were forced to focus their production,only to find ways to satisfy and retain their previous customershave paid.IV.
 
C
USTOMER
T
YPES
 Can be viewed to the customer categories from twodifferent perspectives, the first category deals with customerfrom the perspective of his place [8]:
 
Foreign customers: refers to a collection whichreceives services from Organization.
 
Customer middle: refers to a collection, which receiveservices from Organization and with change or nochange, it will be delivered to foreign customers.
 
Internal customers: the new wave of management,which refers to all employees of an organization thatwill have to step in for providing services.But the other view, expressed to the same classification interms of customer satisfaction and classification of thecustomer, in terms of utility service and his loyalty to theorganization, completely loyal to the level of opposition. TheCRM perspective, the view outside with external customersand internal customers or internal staff's attitude and the secondpoint is converting customers with different levels of satisfaction to very loyal customers. Gandhi, the late leader andthe people of India, the key years of his life sentences withoutthe knowledge of the issues of customer orientation has beenexpressed which can be useful. Part of it is the following:
 
Customer is most important supervisor on ouractivities.
 
He is not dependent on us.
 
We are dependent on him.
 
Customer in our work is not a fleeting purpose.
 
His ultimate aim of all our actions.
 
Customer for we is not a foreign one.
 
He is our part.
 
We with serve customers do not favor but they give usa chance to work.
 
So we should thank him.Also perhaps, four indicators of customer orientation isseen as the main components, which include:
 
Measuring and understanding customer needs in orderto satisfy him.
 
Preparation for the changing needs and requirementschange.
 
Attempt to provide impeccable service.
 
Customer orientation is an issue in the organization,for all categories, all duties and roles.V.
 
R
ELATIONSHIP
B
ETWEEN
IT
AND
CRMTraditional marketing does not require much use of information technology, because there is no need to identify,isolate and distinguish between customers, customer interactionand customization of customer needs. While these fourfunctions in the CRM, a lot depends on their technology andinformation systems. It should be noted that the strategic CRMwhich to help them, we learn more about customers' needs andbehaviors and relationships stronger, friendlier and more usefulto have with them. In fact, having a good relationship withcustomer is heart of any successful and healthy business.However, it is wrong which know CRM as a technologicalphenomenon. Rather, CRM is essentially a process and IT canhave role of facilitate this process. The main idea lies in theintegration of CRM and information technology, combiningskills in information technology and human resources toachieve a deep insight about the customer's wishes and values.CRM should be able to meet the following objectives in thisway [9]:
 
Providing better services for customers.
 
Raising productivity of telephone company facilities.
 
Help to sales personnel to expedite transactions.
87http://sites.google.com/site/ijcsis/ISSN 1947-5500
 
(IJCSIS) International Journal of Computer Science and Information Security,Vol. 9, No. 9, September 2011
 
Simplify marketing and sales processes.
 
Discover new customers.
 
Raising the income level of customers.
 
Increase customer satisfaction and enhance theirloyalty to the company and products.VI.
 
E-C
OMMERCE
 Definition of e-commerce, according to various definitionsand concepts in the CRM, this is the case: use of networks andrelated technology to automate, improve, upgrade or completeredesign business systems to create more value for customersand business partners. The Internet has opened a new arena fordissemination, exchange and present information that is placedfacing humanity in many ways is a profound revolution. Therevolution to this concept, which foundations of economic,social, cultural, political and technological communitiesgradually will change. In the near future will be conducted thevolume of exchanges of scientific, educational, economic,marketing, tourism and many community activities, exclusivelyvia the Internet. In a sentence can be said that all roads willlead to the Internet. Electronic- Commerce has been one of theinnovative using of Internet in business. E-Commerce is aphenomenon that is growing which has attracted manydifferent businesses. In general term can be stated that E-Commerce involves using electronic means to exchange goods,services and information and wide variety of electronic toolsthat are used for this purpose which can be referred to theinternet, intranet, extranet and ... as a means of communicationin e-commerce. Currently, Internet is the most common toolused in e-commerce. The main activities of suppliers andbuyers in e-commerce, coordinating their work activities withthe Internet and learn how to manage the business on theInternet, E-Commerce is the main challenge. From E-Commerce benefits for its participants can be mentioned thiscases [10]:
 
Reducing costs.
 
Increasing efficiency which increases speed andaccuracy in performing the tasks.
 
Access to wider markets and specific markets for aparticular product or service.
 
Access to products with lower prices and higherquality.
 
Transaction easy and accurate access to information.
 
Access to a wide range of products and... .VII.
 
E
LECTRONI
CRMElectronic Customer Relationship Management (E-CRM) isa marketing strategy, sales and online services which areintegrated which can be play a role in identify, acquire andretain customers that are the largest investment companies.Electronic CRM will improve and increase communicationbetween company and customers by create and enhancerelationships with customers through new technology.Electronic CRM software, provide profiles and a history of contact with the any customers. Electronic CRM is acombination of hardware, software, applications andmanagement obligations. Daycheh noted there are two types of E-CRM: Operational E-CRM and Analytical E-CRM.Operational E-CRM including customer contact centers such astelephone, fax and e-mail that Company has been in contactwith customers this way and is includes marketing and saleswhich is done by special teams. Analytical E-CRM, technologyneeds to provide large amounts of data from the customer,which purpose of this section is to analyze customer data,purchasing patterns and other important factors, which willcreate new business opportunities. E-CRM according to theorganization, takes on different forms. E-CRM is not onlysoftware and technology, but also includes business processesbased on customer-centric strategy that is supported by varioussoftware and technology [8].VIII.
 
P
ERFORMANCE OF
E-CRMIn today's world, organizations are communicating withcustomers through various communication channels such asWorld Wide Web, call centers, finding a market, the vendorsand partners. E-CRM systems will encourage customers to dobusiness with the organization and provides a way which in itcustomers can receive any type of product at any time from anychannel and with any language that would be and because withthey treated as a unique person, they feel comfortable. E-CRMsystems provide a central repository for recording and storinginformation about customers and put it in the computer systememployees and each employee can have access to customerinformation at any time. Benefits of E-CRM including [8]:
 A.
 
 Increased customer loyalty
E-CRM system allows the company, despite the variouscommunication channels to communicate with customers viaboth individual and unique. Using E-CRM software, anyonecan achieve that in the organizations history and customerinformation. Information obtained by using E-CRM helps tocompany that meet the cost of obtaining a true Holly andmaintain customer individually. Having this data allowscompanies to focus time and resources more beneficial to thecustomers. This tool creates the possibility that the customerfor each purchase will go to the website, the company'scustomers know and according to the profile of the customer,facilitate the process of shopping for her. Using customerprofiles in CRM, it has been used in pointing out the customerswho are loyal [1, 8].
 B.
 
 Efficient Marketing
Having customer information by an E-CRM system allowsthe company to predict a variety of products to customersinterested in buying them. This information helps to put theorganization, its marketing and sales, with more efficiency andeffectiveness in order to satisfy the customer. Customer datafrom different perspectives to create the right marketing formore useful products are analyzed. Another benefit of segmenting customers, improve marketing process.Segmenting customers according to they needs, allows tocompany private products to customers.
88http://sites.google.com/site/ijcsis/ISSN 1947-5500

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