Customer Relationship Management

Internal Assignment for December 2023 Examination

Q1. Raghav has started his business and is doing it successfully for quite some time.
However, the business has been undergoing a tough competition in the last couple of years
and he is planning to start CRM practices for his organization. As a consultant what would
you advise him regarding the advantages, disadvantages of CRM. What will you advise him
on the prospects of CRM?
Answer 1: CRM is a process that addresses all aspects of identifying customers, creating
customer knowledge, building customer relationships, and shape their perspective of the
organization and its products. CRM targets the building of an infrastructure which may be
used to develop long term customer supplier relationship.
Whenever CRM practices are implemented in an organization, it is not only the new
marketing strategy, but requires adjustment of all stakeholders in the organization itself.
Considering Raghav’s business which he has been running successfully since quite a long
time, he will have to apply CRM practices to cut through the tough competition and keep
making profits. Following are the advantages of Customer Relationship Management
practices;
1. Enhanced Customer Service- Customer satisfaction could be ensured by CRM tools
which help in tracking customer interactions, enabling quick responses to queried
and issues. This leads to a positive mouth publicity and repeat business.
2. Growth in efficiency- Automation can be brought in with CRM in various business
processes, reducing the manual effort and save time. Sales, marketing and customer
service can be streamlined which in turn will allow Raghav and his team to focus on
core business activities.
3. Centralization of Data- The customer data can be made accessible to all employees
as CRM centralizes it. Collaboration can be promoted with this shared information,
which will ensure that everyone is on the same page in the organization regarding
the requirements of customer and interactions with them.
4. Targeted marketing- The patterns and preferences of the customer’s data can be
analysed by CRM systems. The information retrieved from data can be used to
create targeted marketing campaigns and ensure maximum ROI on marketing efforts
by increasing sales.
5. Improved Customer Relationships- Stronger relationships can be built up and
maintained by businesses with the help of CRM systems. It helps to understand the
customer needs and preferences in a better way which will further aid Raghav and
team to tailor their products and services to meet customer expectations effectively.
With above attributes of the CRM, Raghav can understand the preferences and
behaviour of the customers which will help him customize the offerings of his company
to meet their needs. This will enhance customer loyalty and ensure profits for the long
term.
Along with the advantages, there are few limitations of implementing CRM for Raghav’s
business, which are elaborated further;
1. Expense- Software, trainings and customization can be achieved only by
implementing CRM systems, and that involve substantial initial costs. If Raghav is
running a small business, investing in CRM might strain the budget of his
organization.
2. Complexity- A significant amount of time and effort is required to set up and
integrate CRM systems with existing processes and infrastructure, which are
complex in nature. The productivity of employees can be temporarily decreased as it
might take time for them to adapt and adjust with the new technology. Hence, it can
affect the business eventually.
3. Data Security- For CRM, a huge amount of customer data needs to be stored
electronically, which poses security risks. Hence, a huge amount is also required to
be invested to protect the data and build a robust cybersecurity system which
cannot be breached or hacked.
4. Machine replacing Man- CRM tools are usually powerful as efficient they are, hence
they are highly relied upon for the business. In the process, personal touch can be
lost during customer interactions which can diminish their sense of belongingness as
well. Hence, it is necessary to strike a balance between human interaction and
automated processes.
Advice on the prospects of CRM would be as follows;
1. Skill development and support- The CRM systems can be utilized to its full potential
when the staff is well trained provided with the comprehensive training and ensuring
ongoing technical support. A well-groomed staff can help maximize the benefits of
CRM for the business.
2. Customization- A tailored CRM system should be built by Raghav considering the
need of his business. CRM systems can be effective only when it is customized in a
way that aligns with the specific requirements of the business, and customers.
3. Integration and Upgrades- To ensure a smooth data flow between the different
departments, integration needs to seamlessly done between the existing software
systems and the CRM. Regular updates and upgrades should be implemented in this
evolving era of CRM to ensure that his business benefits from the latest features and
functionalities.
4. Evaluation- Some of the important parameters which show us the direct results are
sales, operational efficiency and customer satisfaction. Hence, key performance
indicators should be decided by Raghav relevant to his business to measure the CRM
system’s impact on these parameters.
5. Code of Conduct – The data provided by the Customers should be handled in an
ethical way and comply to the data protection laws. Customers trust the business
with their personal data; hence it is crucial to maintain this trust for long term
success of CRM practices.
 Hence, if Raghav follows the above advise and implements CRM in his organization’s
business practices, he can definitely benefit from it and thrive through the cut throat
competition in the market.
Q2. Your company manufactures LED bulbs for sales both in B2B and B2C markets. However,
to build relationships you feel there is a strong need to partner with major customers. Your
consultant friend has explained to you about the concept of reciprocation. How would you
use the concept of reciprocation to build a strong relationship with your customers?
Answer 2: The tendency which is derived by human nature to want to offer something in
return of something they receive is the gist of the principle of reciprocity. For years, human
beings have been able to survive in many ways with the help of reciprocity and hence,
marketers use the principle of reciprocity to their advantage in their marketing strategies.
Building strong relationships with customers is very important especially in markets like B2C
& B2B in the dynamic world of business where competition is intense. Concept of
reciprocation is one good potential strategy to build strong customer relationships.
According to the psychological study, people tend to respond positively to kind gestures,
which creates a sense of obligation to reciprocate.
The principle of reciprocation can be strategically deployed to build long lasting
relationships with major customers for a LED bulbs Manufacturing company in both B2B &
B2C markets. Partnering with major customers can help benefit the business with following
strategies;
1. Customer delight-Some exceptional services can be provided to the customers such
as expediated shipping, hassle free return or replacement policies, and dedicated
customer support which shows commitment of a company towards its customers.
Customers are more likely to reciprocate with their loyalty and positive mouth
publicity when they experience extraordinary services from the business. Not only
satisfaction, but reciprocation comes with customer delight, which is a step ahead of
just satisfying the basic need.
2. Collaboration- An active collaboration with major customers, especially B2B, could
be done by having joint marketing initiatives or product development projects which
are beneficial for mutual success of their businesses. Considering my LED bulb
business, I can collaborate with Décor industries and develop trending technology
applied products suitable for their needs. This, in turn will be reciprocated by their
orders, loyalty and long-term associations.
3. Special offers and gifts- A sense of appreciation can be created among the customers
by offering them personalized gifts or special discounts. These displays of act of
generosity triggers the concept of reciprocation among the customers, making them
more obliged to stay loyal and repeat their orders. Giving out appreciation tokens in
the forms of thank you cards or complimentary products provides business a
personal touch. These gestures invoke the sense of reciprocity among customers and
the reciprocate with their association.
4. Knowledge sharing and Networking events- The company can be positioned as a
trusted advisor when they share valuable insights of their industry, latest market
 trends and product knowledge with their major customers. Knowledge sharing yields
the reciprocation from its customers in the form of trust which gives a solid ground
to build strong and long-term relationships. These sessions can be done in the form
of exclusive events or conferences where customers can connect and network as
well. Such initiatives have many advantages such as enhancing company’s reputation
and making the customer feel special and they, in turn, reciprocate through
continued loyalty and business.
5. Feedback and improvement- Feedback, positive or constructive both are important
for any business to flourish and genuinely taken the opinion of customers into
consideration makes them feel important and heard. Implementing their suggestions
not only enhance the product but also shows that the company values them. This
promotes reciprocation through continuous give and take of ideas, and most
importantly, continues business.

Hence, in this way, the concept of reciprocation can be implemented to build strong
relationships with the customers.
Q3. As a Chief Technological Officer, you are about to implement, a CRM solution in your
organisation? How will you:
a. Build a strong database of your customers? Modify and update it as necessary? What
will be your sources of data?

Answer 3 a: For an effective customer relationship management, building and

maintaining a strong customer database is the key, which I would bring in as the Chief
Technological Officer. Following would be the steps;
1. Client Profiling: To begin, determine the most important client segments by
looking at their demographics, past purchases, preferences, and behaviour. The
process of segmenting data aids in customising marketing plans and offerings.
2. Data collection: Compile client information from a range of sources, including
social media, web, sales, surveys, and customer care encounters. Make use of
both external and internal resources to gather thorough data.
3. Data Integration: To generate a single customer profile, combine data from
several departments, such as sales, marketing, and customer support.
Personalised interactions are made possible by this integration, which
guarantees a comprehensive perspective of every customer.
4. Data Validation: To guarantee data accuracy, put validation procedures into
practise. Maintain the integrity of the database by routinely validating and
cleaning it to get rid of redundant or out-of-date data.

For modifying and updating the data as per necessary changes, following would be
the actions;
 1. Frequent Audits: To find gaps and discrepancies, periodically audit the database.
Frequent audits assist in locating information that is out of date and areas that
require improvement.
2. Automated Updates: Use automated procedures to keep client data up to date.
For example, set up email campaigns to automatically remind clients to update
their profiles so that the information is up to date.
3. Establish feedback loops with teams that interact with customers. Based on
direct customer experiences, staff members in sales, marketing, and customer
support can offer insightful suggestions for database modifications.
Following would be the sources from where the data can be gathered to apply the
strategies and retrieve important information from it;
1. Transactional Data: An essential component of the database, sales transactions
and purchase history offer insights into consumer preferences and trends.
2. Online Interactions: Information about consumer preferences, interests, and
engagement patterns can be obtained through website analytics, social media
interactions, and online surveys.
3. Customer feedback forms and surveys: These tools let users add detailed
information about their expectations, preferences, and experiences, which helps
to improve the database. Emails, chat transcripts, and call records are examples
of customer service logs that provide useful details about the problems,
requirements, and opinions of their clients.
4. Third-Party Data: To improve client profiles, make use of outside data sources.
These can contain industry-specific databases, market research papers, and
demographic data.
Implementation of above strategies can assure the accuracy and relevancy of the
CRM database which enables the organization to make informed decisions, delight
their customers and satisfy their needs, by delivering personalized experiences and
strengthening the customer relations effectively.

b. How will you build a CRM roadmap for your technological implementation?

Answer 3 b: As a Chief Technology Officer, you must implement a CRM system in a

methodical and planned manner to guarantee its seamless integration into the
company. Creating a CRM plan entails a few crucial steps that will effectively direct the
technological implementation:
1. Evaluate Current State: Start by carrying out a thorough evaluation of the
company's present data management, technology, and customer-related
procedures. Determine the current obstacles, weaknesses, and areas that could
use better.
2. Establish CRM Objectives: Clearly state the goals of integrating CRM within the
company. Establish clear objectives, such as raising sales, increasing customer
 happiness, improving customer retention, or simplifying customer service
procedures. The roadmap will be directed by these goals.
3. Involve important stakeholders from a range of departments, including as IT,
customer service, sales, and marketing, in the CRM installation process. To learn
about these stakeholders' needs and expectations for the CRM system, get their
feedback and insights.
4. Choose the Right CRM system: Make sure the CRM system you select fits both
your organization's needs and your budget. Examine various CRM providers,
taking into account aspects like scalability, choices for customization, ease of use,
and compatibility with current systems.
5. Data Integration and Migration: Create a strategy for transferring current client
information to the CRM system. Make sure there is a smooth transition across
email platforms, marketing automation, ERP, and other organisational systems.
Throughout this procedure, data consistency and integrity are essential.
6. Configuration and Customization: Tailor the CRM system to the unique
requirements of the company. Set up the system to automate customer
interactions, sales procedures, and workflows. Configure the CRM interface such
that it complements user preferences and the organization's branding.
7. User Adoption and Training: Offer thorough training courses to staff members
who will be utilising the CRM system. Make an effort to inform them of the
features, capabilities, and best practises for managing client data in the system.
Promote user adoption with continuous assistance and channels for providing
feedback.
8. Data Security and Compliance: To safeguard consumer information, put strong
data security procedures in place. Verify adherence to pertinent industry
standards and data protection laws. Check the CRM system on a regular basis for
security flaws, and take quick action to resolve any found.
9. Monitoring and Optimisation: To gauge how the CRM system is affecting
corporate goals, set up key performance indicators (KPIs). Keep an eye on these
data to gauge the system's efficacy. Get input from users and other relevant
parties to determine what needs to be optimised and improved.
10. Constant Improvement: The process of implementing CRM is never-ending.
Promote a culture of ongoing development inside the company. To continuously
improve the system, evaluate CRM performance on a regular basis, get user
input, and stay current on best practises and new CRM technology.
Through adherence to this CRM strategy, the company may guarantee a seamless
and efficient integration of technology, resulting in enhanced customer connections,
optimised workflows, and enduring business expansion.