Customer Relationship Management (CRM)

Customer Relationship Management (CRM)

In addition to the customized data system, CRM is the study of relationship marketing (Vuorinen, 2010). Accounting and statistics concepts Total Quality Manager (TQM), Balanced Scorecard, and Statistical Process Control (SPC) are compatible with the framework.

Originating in the 1990s, CRM solutions have become a fundamental business implementation. Derivative software includes territory management, contact management, opportunity management, budgeting, planning, sales analysis, optimization, forecasting and other business applications. Such sales knowledge management is indispensable to implement a winning sales strategy.

In short, CRM helps manage all client information guiding subsequent sales, advertizing and customer service. Fruitful customer relationships are a central pillar of marketing. An example of such communication enabling software is Sage SalesLogix v7.2. Sage Group, Oracle and SAP are the world’s largest suppliers of accounting and management software. Sales reports and white papers claim that instituting the platform confers a strategic business advantage to an organization. In the competitive business world, where customization is the only way to stand out from the crowd, an outselling edge is welcome.

A non-happy customer. Illustration by Elena

Aside from the marketing mix (the Four Ps: Place, Product, Price and Promotion), marketing teaches that one cannot create needs; only shape existent needs into marketable human wants. Perhaps, managers’ needs called for CRM solutions to better organize businesses and reach their target sales goals.

Briefly, the software can be conceived of as a business intelligence tool destined to be a prosperity increasing mechanism. Certainly, its borderless nature appeals to international business.

Market research is the process of strategically gathering and analyzing data; an example is IDC research. Operational CRM permits sharing of customer input across the enterprise, consistent with the theoretical construct of information capital (Vuorinen, 2010).

An increasing number of companies adopt CRM business management solutions (Kao, 2007). Fast Moving Consumer Goods (FMCG) is the personal hygiene and small hardware industry. Procter & Gamble is a major player in the FMCG market. Gradually, marketing turned into a more social undertaking and prompted the changes. The aim shifted towards a relationship built between the customer and the corporation that is rewarding to both parties.

CRM management and CRM software may be prerequisites for long-term business profits. A potential drawback is internal confusion. Specialists recommend installing corporate and individual brand CRM. To function, the process must retain central control, thus all top managers at higher organization levels must be on board.

Customer-oriented, CRM may help to retain current clients at a lower cost than recruiting new consumers. Academics have documented this technology driven business processes improvement.

References:

• Kao, Y. C. (2007). Corporate CRM – the influential factors and difficulties facing the FMCG industry: A case study of Procter & Gamble. Master’s Thesis. The University of Nottingham, International Business.
• Vuorinen, T. (2010). Quality development of CRM facilitated business processes. Master’s Dissertation. Aalto University, School of Science and Technology, Faculty of Electronics, Communications and Automation.