CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management

Customer Relationship Management

Customer Relationship Management

CRM is defined as, the automation of manual business activities which involves every department through various interrelated channels. It involves technological infrastructure, which makes the integration of each department easily and effectively. Another definition says that, CRM is a process that involves all the departments, identifying the need of customers, creates customer awareness, build a strong relationship with customers and make them loyal with the products and the company (Anton, 1996, pp.134-41).

One main thing is that CRM is a process that works continuously to enhance the value for the customer. It is not a onetime step which starts and after creating value goes to end. It is a continuous and constant process that should remain effective and efficient otherwise the purpose of CRM gets fail. It is a business strategy more than a strategy for just one department. It relates with the whole organization from supply of raw materials till manufacturing and from marketing till distribution to the customer. It provides a direction to all the departments of the organization to maintain and build a relationship with customers. Here, a question arises that all the departments will not have involvement with the end customer, but it is a fact that whether they have involvement or not but CRM is a whole process so if any of the department fails to play its role than whole process gets disturb (Armstrong, 2004, pp. 142).

CRM is a relatively new concept but it is gaining fast acceptance throughout the market. CRM is not a mere tool for customer communication, but in a wider scope, it integrates sales, marketing, finance and, to some extent, quality and manufacturing into its ambit. Choy et al. (2002) describes CRM as a process or a tool to increase information about the customer and increase customer loyalty to the business. Many authors over the years have described the objectives of CRM tool. Shaw (1999) describes three objectives of CRM as to build a relationship with the customer which is long term and profitable, increase communication with customers and maximize the company's share in the customer's business (Ballou, 1998, pp. 54-57). Choy et al. (2002) describe CRM as a tool to locate and engage and retain customers forming the core of customer focused business strategy. CRM, with its integrated communication systems, forms a contact centre where companies can securely communicate with the customer. Companies can venture into new markets with increased levels of confidence owing to availability of information. It assists sharing of information within the company to form sales, finance and marketing databases which can be used to make business decisions. For the customer, CRM offers transparent information sharing and access to company products through the use of the internet and other channels (Beijerse, 1999, pp. 94-110).

CRM Implementation

The implementation of CRM at Royal Mint is a crucial stage for the overall organization. CRM is rapidly diffusing in various markets, but it has a low success rate of implementation as many ...