Customer Relationship Management
Professor Jonathan Kelly
May 1, 2015
Strayer University – Cobb Campus
Week 7 Assignment 2
Bidgoli, H. (2012). MIS2. Boston: Cengage Learning.
The purpose of this analytical paper is to discuss customer relationship management in relation to information management and the digital firm in summary and address any issues or problems, I will also describe how and why information systems is used today; I will identify emerging technologies that enable new forms of communication, collaboration, and partnering; and finally I will explain how information systems are enabling new forms of commerce between individuals, organizations, and governments. According to the textbook customer relationship management (CRM) consists of the processes a company uses to track and organize its contacts with customers, and the main goal of a CRM system is to improve services offered to customers and use customer contact information for targeted marketing. Companies know that keeping and maintaining current customers is less expensive than attracting new customers, so an effective CRM system is useful is meeting this goal. According to Susan and Derek Nash one of the ongoing challenges successful businesses face is in optimizing customer satisfaction and developing customer relationship management. So many companies “jump on the bandwagon” of improving customer service in order to impact customer retention levels.
Since 1994 customer satisfaction has dropped in nearly every sector of the economy according to the American Customer Satisfaction index compiled by the University of Michigan, so raising customer satisfaction levels requires a comprehensive system approach such as: the importance of a clear customer experience strategy; selecting the correct people; developing, motivating and managing your people; establishing effective service delivery processes; building in continuous improvement; and ensuring managers are the key change-agents in the customer relationship process.
Strategies in Customer Relationship Management According to the textbook marketing strategies in a CRM system focuses on long-term relationships with customers instead of transactions. These strategies include identifying customer segments, improving products and services to meet customers’ needs, improving customers retention, and identifying a company’s most profitable and loyal customers. In order to get the most out of these strategies, a CRM system helps companies make better use of data, information, and knowledge to understand their customers. A CRM system captures information about customer’s interactions for sales personnel and customer service representatives so they can perform their jobs more effectively and efficiently which includes customers’ preferences, background, income, gender, and education. But CRM is more than just tracking and organizing contacts with customers, it also gives companies a more complete picture of their customers. According to Susan and Derek Nash when setting a clear customer experience strategy often companies confuse defining customer experience strategy with creating a “slogan”. To establish a good strategy certain key practices are required such as to: understand the overall organizational vision and mission; define the organizations customer service direction, slogan and values; ensure customer service is defined as a key responsibility for the business and department; share the customer experience strategy via a comprehensive communication program; and ensure that this strategy does not conflict with other business strategies because improving customer service should be a priority. The textbook tells us that CRM is more than just tracking and organizing contacts with customers but it gives companies more complete pictures of their customers. According to Susan and Derek…