You are on page 1of 8

CRM IMPEMENTATION- PERCEPTUAL ANALYSIS OF SERVICES SECTOR MANAGERS Dr. Dalbir Singh* Dr. Tika Ram** Dr.

Tilak Sethi*** Abstract CRM initiatives represent a fundamental shift in emphasis from managing product portfolios to managing portfolios of customers, necessitating changes to business process and people. This article is based on descriptive method involving survey of 354 managers of five service sectors analysing their perception towards CRM approach in relation to business objectives of the organisations. The study pin points the differences in approach of various organisations in adopting and implementing CRM practices vis--vis business objectives of organisations. The findings of study highlight the focus of different organisation on the elements of CRM in achieving business objectives. Key Words: CRM, Perception, Service organisations.

The authors are faculty in Haryana School of Business, GJUS&T, Hisar.

CRM IMPLIMENTATION- PERCEPTUAL ANALYSIS OF SERVICES SECTOR MANAGERS Introduction As business processes become increasingly knowledge intensive, transaction decline, and new relationships are defined opportunistically, the focus of attention shifts to core capabilities of the firm-the few things it can do well. In any type of e-business the challenge begins once customers are on board, retaining them, expanding their business, and keeping them coming back for more times. Such competitive strength building loyalty comes from (1) integrating and turning customer and channel knowledge into action and (2) forging strong relationships with customers and channel partners. CRM comprises three phases: acquiring, enhancing, and retaining customers. Each phase supports increased intimacy and understanding between a company and its customers. These three phases are (1) Acquiring new customers: the company acquires customers by promoting product and service leadership.2) Enhancing the profitability of existing customers: the company enhances the relationship by encouraging excellence in cross selling and up selling, thereby deepening and broadening the relationship.3) Retaining profitable customers for life: Retention focuses on service adaptability-delivering not what the market wants but customer want. CRM initiatives represent a fundamental shift in emphasis from managing product portfolios to managing portfolios of customers, necessitating changes to business process and people. As companies start to re-engineer themselves around customers, individual employees must also come to terms with changing business process, organizational culture and, thus, the ways they view their customers and how they treat them. Customer relationship management is a comprehensive approach that promises to maximize relationships with all customers, including Internet or e-customers, distribution channel members, and suppliers. Getting to know each customer through data mining techniques and a customer-centric business strategy helps the organization to proactively and consistently offer (and sell) more products and services for improved customer retention and loyalty over longer periods of time.

Review of Literature Customer Relationship Management appeared as a new concept at the climax of the Internet boom Kotorov (2003). It changed both the CRM market and customer-related business requirements of all sizes of companies. The modern Customer Relationship Management concept was shaped and influenced by the theories of Total Quality Management Gummesson (1997) and by new technological paradigms Zineldin (2000). Fletcher (2000) defined that the hype surrounding Customer Relationship Management (CRM) has been pervasive within the business, technology, media, and academic communities since early 1997. According to Greenberg (2001), CRM is a disciplined business strategy to create and sustain Long-term and profitable customer relationships. According to Greenberg (2004), CRM generally is an enterprise-focused endeavour encompassing all departments in a business. He further explains that, in addition to customer service, CRM would also include, manufacturing, product testing, assembling as well as purchasing, billing, human resource, marketing, sales and engineering. According to Bellenger et al. (2004), the growing body of literature on CRM is somewhat inconsistent and highly fragmented. CRM normally involves business process change and the introduction of new information technology, consequently effective leadership is important Galbreath and Rogers, (1999). Because leaders monitor the external environments of an organisation they are often the best placed to set the vision or strategic direction for CRM projects. In addition, leaders are influential in the authorisation and control of expenditure, the setting and monitoring of performance and the empowerment and motivation of key personnel Pinto and Slevin, (1987). As CRM reaches into many parts of the business it has been suggested that organisations should adopt a holistic approach Girishankar (2000). The holistic approach places CRM at the heart of the organisation with customer orientated business processes and the integration of CRM systems. Ciborra and Failla (2000) conceptualise CRM beyond a front office contact management system. For others, CRM goes further, to constitute operational, analytical and collaborative elements Trepper, (2000). Holistic approaches to CRM help organizations co-ordinate and effectively maintain the growth of disparate customer contact points or channels of communication.

Research Objective The main objective of the research is to make comparison of perceptions of managers of service organisations. Research Methodology In the present study, descriptive survey method has been used to study CRM in selected organisations. To construct the study in the proper way a sample is specified and the data are collected accordingly. The managers of the Sales & Marketing, Operation, Finance, Human Resources and Information Technology constituted the population from which a sample of 354 managers was taken by using stratified random sampling technique. The north India constituted the area of study for the present work. The respondents were to allocate points across 1 to 10 to given statement according to how important that business objective was to their organisation. Descriptive statistics and ANOVA has been used for analysing the data. Following hypothesis has been formulated: Ho: There is no significant difference in perception of managers of various services organisations. Analysis and Discussion Table No.1 and Table No.2 show perception of managers of services organisation towards CRM approach. Table No.1: Perception towards CRM Approach N To improve our ability to capture and analyse business intelligence data to inform strategic and marketing decisions Information Technology Sales and Marketing Operation Finance Human Resources Total 52 105 82 46 69 354 Mean 6.9615 7.0571 5.5854 5.6304 6.9565 6.4972 7.544 .000 F Sig. (p-value)

N To improve our customer retention statistics Information Technology Sales and Marketing Operation Finance Human Resources Total To improve our ability to conduct real-time analysis of data when interacting with customers Information Technology Sales and Marketing Operation Finance Human Resources Total Information Technology Sales and Marketing Operation Finance Human Resources Total 52 105 82 46 69 354 52 105 82 46 69 354 52 105 82 46 69 354

Mean 7.6154 7.5714 5.4146 5.4783 6.9130 6.6780 7.3462 7.4356 6.5500 6.0000 6.5072 6.8547 6.9423 6.7143 6.0610 5.3261 5.9420 6.2655

Sig. (p-value)

20.786

.000

4.748

.001

To improve collaboration with customers and/or partners in the supply chain

4.620

.001

For business objective improving ability to capture and analyse business intelligence data to inform strategic and marketing decisions, the managers of information technology , sales and marketing and human resource have mean value of 6.9615, 7.0571 and 6.9565 respectively. Significant difference (F-value 7.544/ p-value.000) in perception of managers was observed at 5 per cent level of significance in relation to this business objective. For improving customer retention statistics, the managers of information technology, sales and marketing and human resource have mean value of 7.6154, 7.5714 and 6.9130respectively. The managers of different service organisations have shown significant differences (F-value 20.786/ p-value.000) in relation to their perception regarding business objective improving customer retention statistics. Improving ability to conduct real-time analysis of data when interacting with customers is perceived higher by managers of information technology and sales and marketing as indicated by their mean values of 7.3462 and 7.4356 respectively. In relation to this objective, difference in perception of managers was found significant (F-value 4.748/ p-value.001). The business objective improving collaboration with customers and/or partners in the supply chain has

comparatively higher mean values of 6.9423, 6.7143 and6.0610 for managers of information technology, sales and marketing and operations respectively. Significant difference (F-value 4.620/ p-value.001) in perception of managers has been observed for this business objective. Table No. 2: Perception towards CRM Approach N To improve our company performance Information Technology Sales and Marketing Operation Finance Human Resources Total To improve elements of Information our service provision Technology Sales and Marketing Operation Finance Human Resources Total To improve our marketing information and associated capabilities Information Technology Sales and Marketing Operation Finance Human Resources Total To improve our contact Information with customers in terms Technology of the number of touch Sales and Marketing points and different Operation channels to market Finance Human Resources Total 52 105 82 46 69 354 52 105 82 46 69 354 52 105 82 46 69 354 52 105 82 46 69 354 Mean 8.1346 7.4667 5.9512 7.2143 6.8406 7.0571 7.2692 6.9238 6.2195 5.8043 6.2319 6.5311 7.5000 7.0571 6.1829 6.2381 7.5652 6.9200 7.5385 6.7905 6.5244 6.5435 6.8551 6.8192 2.068 .085 6.092 .000 3.848 .004 7.221 .000 F Sig. (p-value)

The highest total means value of 7.0571 is found for business objective improving company performance showing importance of this business objective. The managers of marketing and finance have highest mean values of 7.4667 and 7.2143 respectively for business objective improving company performance. The difference in perceptions of managers was found

significant (F-value 7.221/ p-value.000) for improving company performance as business objective. For improving elements of our service provision, the managers of information technology have highest mean value of 7.2692 and difference in perception of managers was found significant (F-value 3.848/ p-value.004) for this business objective. The business objective improving marketing information and associated capabilities has been perceived equally by the managers of information technology, sales and marketing and human resource having mean values of 7.5000, 7.0571and 7.5652respectively and difference in perception was found significant (F-value 6.092/ p-value.000). Improve contact with customers in terms of the number of touch points and different channels to market have highest mean value of 7.5385 for managers of IT and difference in the perception of managers was found insignificant (F-value 2.068/ p-value.085). Findings The business objective improving company performance has been perceived highest. The managers of marketing and information technology have same perception for CRM in relation to business objective of the organisations. The managers of IT have distinct perception in relation to business objectives as improving marketing information and associated capabilities and improving contact with customers in terms of the number of touch points and different channels to market in comparison to the managers of other service organisations. References Bellenger, D.N., Zablah, A.R. and Johnston, W.J. (2004), An Evaluation of Divergent Perspective on Customer Relationship Management: Towards a Common Understanding of an Emerging Phenomenon, Industrial Marketing Management, Vol. 33, pp. 475-80. Ciborra, C., Failla, A. (2000), Infrastructure as a Process: The Case of CRM in IBM, In Ciborra, C. (Eds), From Control to Drift: They Dynamics of Corporate Information Infrastructures, Oxford University Press, Oxford, pp.105-24. Fletcher, Scott (2000): In Greenberg, Paul (2001), CRM at the Speed of Light: Capturing and Keeping Customers in Internet Real Time, McGraw-Hill. Galbreath, J. and Rogers, T. (1999), Customer Relationship Leadership: A Leadership and Motivation Model for 21st Century Business, The TQM Magazine, Vol. II, No. 3, pp. 161-171. Girishankar, S. (2000), Companies want CRM Tools to Manage Business Relationships, Information Week, No. 17, p. 65.

Greenberg, P. (2001). CRM at the Speed of Light: Capturing and Keeping Customers in Internet Real Time. New York, McGraw Hill Osborne Media. Greenberg, Paul (2004), CRM at the Speed of Light: Essential Customer Strategies for the 21st Century, McGraw Hill Osborne. Gummesson, E. (1997), Relationship Marketing and Imaginary Organizations a Synthesis, European Journal of Marketing, Vol. 30, No. 2, pp. 31-44. Kotorov, R. P. (2002), Ubiquitous Organization: Organizational Design for e-CRM, Business Process Management Journal, (8:3), p. 218. Pinto, J.K. and Slevin, D.P. (1987), Critical Factors in Successful Project Implementation: IEEE Transactions on Engineering Management, Vol. 34, No. 1, pp. 22-27. Trepper, C. (2000), Match Your CRM Tool to Your Business Model, Information Week, No.15 May, pp.74. Zineldin, M. (2000), Beyond Relationship Marketing: Technologicalship Marketing, Marketing Intelligence and Planning, Vol.18, No.1, pp. 9-23.