Adopting customer relationship management

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This paper begins with the basic concepts of CRM, reviews the history and the evolution of CRM, and addresses the characteristics of CRM. Then it explores the various involvements of CRM application at different levels from the managerial level, to end-users and the macro-environment around it. Then it comes to the pros and cons of CRM application.

The major purpose of this paper is to seek the best way to fit CRM applications into the business environment and trying to avoid waste.CRM is defined by the article as being an information industry term that names an approach, which seamlessly integrates sales, customer service, marketing, field support and other functions that touch customers. In other words, CRM is a way for an organization to keep track of their most profitable customers and at the same time reduce the costs; increase the value of interaction to consequently maximize profits.

The article hypes four characteristics:
1.Salesforce automation: the current customer, deal, product and competitor information are all stored in the CRM central database for salesforce retrieval and the sales professional are greatly empowered
2.Customer service and support: CRM helps companies to incorporate a proactive customer service into its core and through it to solve problems efficiently

3.Field service: remote staff can quickly and effectively communicate with customer service personnel to meet customers’ individual expectations, so in this way available and skilled engineers are quickly assigned to each problem.

4.Marketing automation: CRM provides updated information about customers’ buying habits and I this way the company can have the most effective marketing campaigns that will attract more customers. It also gives the opportunity for the businesses to find out about the clients’ likes and dislikes and to better understand customers’ needs. Consequently these companies can capture a market before their competitors.
1. Components of CRM

From the procedural point of view, the solutions provided by the CRM include the following components:
? The multimedia access channels (e-mail, Web site messages, fax, image, voice through an ACD or IVR)
The work rules engine (clients are identified and attributes are assessed to determine treatment)
The back office systems and database of client information
The fulfillment engines

From the technology point of view, CRM incorporates in the management reporting a complete, integrated, comprehensive view and the foundation of it consists of:Interaction (it plays a very special role and in that sense we have seen technological solutions emerging in the marketplace, and they can be either self-service like IVR, Web browsing or assisted like having a representative answering phone calls or answering e-mails.)

Workflow (allows the following up of customer issues on the service side, and has as tools the data warehouse, the data mining, the marketing analysis).Clustering and segmentation (allows the building of targeted campaigns that can be then dealt with by salespeople)


2. Evolution and current status of CRM
The table below sum up the history of CRM presented by the article.



The history of CRM
Year Lesson learned Milestones
Introduction 1980s to early 1990s Very expensive to maintain Focusing on automating and standardizing the internal processes to make the customers an asset
Growing Mid-1990 to end 1990 Some vendors are slow to respond to the Internet Due to the emergence of the Web, client/server architecture behind CRM applications would disappear
Current

3. Pros and cons of CRM
CRM solutions not only improve customer loyalty, but also the internal processes which in turn increase efficiently.From a marketing perspective, it identifies and targets best customers based on recency, frequently and monetary scoring. It helps manage marketing campaigns with clear goals and quantifiable objectives.

It also creates and manages solid sales leads for field and telesales representatives. Marketing and cross-selling opportunities are also increased. CRM solutions also add more valuable knowledge gained directly from customer interaction. This knowledge improves product development process.

From sales perspective, CRM solutions improve telesales, field sales and sales management through real time information sharing among multiple employees. The entire salesforce is improved by capturing, distributing and leveraging the success and expertise of your highest performers. By focusing on growing the best accounts, the revenue per call is also increased.

From the field service perspective, customer satisfaction and retention are ensured by solving customer problems quickly. Customer satisfaction is ensured by allocating, scheduling and dispatching the right people, in the right time.

From the perspective of customer support, shared relationships with individualized customer care based on specific customer history and preferences are strengthened.

Also, CRM is facing lots of challenges. To implement a CRM system which does not meet the organization’s goals or simply can’t be accepted by the users is a disaster to a company. The table below hypes the cons of the CRM.
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