Customer Relationship Management Activity

Customer Relationship Management (CRM) is a method used to look at customer

relationships and to identify the most effective way to meet customer needs and
expectations. In order to better understand how CRM is used in business today, complete
the following activities:

1. Research the meaning and uses of CRM on the Internet. Begin by searching
Wikipedia to find a complete definition of CRM.

2. Search www.findarticles.com to find three articles or Podcasts on Customer

Relationship Management and how businesses use CRM in their daily operations.

Once your research is complete, fill in the table below.

Definition
Customer relationship management (CRM) is the
combination of practices, strategies and technologies that
companies use to manage and analyze customer
interactions and data throughout the customer lifecycle,
with the goal of improving customer service
relationships and assisting in customer retention and
driving sales growth.

Business uses of CRM

 LCRM can help automate everyday tasks.
 CRM leads to improved analytical data and
reporting.
 CRM means greater efficiency for multiple
teams.
 CRM software is also capable of managing
inventory and tracking item quantity levels, the
pace at which they sell, and even which items
aren’t selling.
 Identifying customer spending patterns.
 Correspondence Tracking-For those who need
instant access to client correspondence, be it
email, phone calls, or in person conversations,
CRM software is vital.
 Targeted Marketing-Email marketing, Campaign
and Promotion Management. Digital marketing
tools can be used for more than long term
relationship building.

Odgers, The World of Customer Service, 2e

©2008 Thomson/South-Western
 Business advantages of
CRM  Enhances Better Customer Service
 Facilitates discovery of new customers
 Increases customer revenues
 Helps the sales team in closing deals faster
 Enhances effective cross and up selling of
products
 Simplifies the sales and marketing processes
 Makes call centers more efficient
 Enhances customer loyalty
 Builds up on effective internal communication
 Facilitates optimized marketing

Customer advantages of
CRM  Leads to customer satisfaction and makes the
customer loyal towards the brand. It is all about
loyalty and trust of the customers that counts for
determining that a business has a good service
reputation and CRM plays the big role in
providing such
 Satisfied customer spreads positive word of
mouth which benefits the company
 Provides Convenience – customers always want
to find their convenience when purchasing. And
with the proper use of Customer Relationship
Management system, it is not impossible to
provide the best services for customers which are
mainly for their convenience
 The more customers become confident with the
services and products of the business together
with CRM, business owners can expect for the
increase of profit.

Company issues to consider

when using CRM
Low Employee Engagement-Sometimes getting to
grips with a new system, particularly when old systems
have been in place for a long time, can mean that staff
are reluctant to use the new CRM software.

Customers are Unhappy- If, for example, you’re using

CRM to create automated customer services systems, it
may prove to be a nuisance for customers who prefer to
have more personal contact. They might choose to go

Odgers, The World of Customer Service, 2e

©2008 Thomson/South-Western
 elsewhere or seek other forms of communication such as
email.

The CRM is Unsuitable for Business Requirements-

Often, businesses are not fully informed and can end up
investing in a CRM package that is unsuitable for their
needs.

Missing Crucial Data- Being clever with the kind of

data you choose to collect can make a big different in
your CRM’s effectiveness. Simply collecting sales data
and personal details is no longer enough to stay ahead of
the competition.

Security Issues- The very nature of CRM software

poses the potential for mistreatment of data. Such large
databases, some holding hundreds of thousands of
personal details, are stored online and accessed by teams
around the globe.

Out-of-Date Information- Customer data changes often

and changes frequently. Customer’s tastes are constantly
evolving and it is crucial that marketers do not fall
behind by using old information.

Customer drawbacks of
CRM

Odgers, The World of Customer Service, 2e

©2008 Thomson/South-Western