Assessment 2: Business Report



Executive Summary

This assignment is based on the practical example of customer relationship management (CRM). The customer relationship management has vital importance for companies. Building a long term relationship with customers has become very necessary for companies nowadays in order survive in the business. CRM is not software or a technological tool but a strategy that relies on new technologies for organizational promotion and development by automating business processes and adopting customer-centric approaches. The implementation of CRM solutions in the business is to install software to modify the organization as a whole, which requires the implementation of a behaviour change plan. In fact, the implementation of a CRM strategy demands structural changes and competitive behaviour.

Executive Summary2

Introduction4

Components of CRM4

Managing Customer Relationships6

Implementation Strategies of Customer Relationship Management (CRM)7

Shift of CRM on Domestic to Global Level9

Conclusion10

References11

Assessment 2: Business Report

Introduction

This assignment is based on the practical example of customer relationship management. Customer relationship management is a model used by organizations to communicate with customers. It comprises automated mechanisms of technology which align marketing, sales, technical support and customer service. It is regarded as a business strategy by organizations. The management of customer relationships (CRM) is a business strategy that is based on knowledge and understanding of each client. Through this approach, a company knows the tastes and preferences of each consumer, and from this information, provides programs to meet their particular needs. The goal of this approach is that the client receives special treatment and personalized by the business. Thus, the CRM will attract, retain and ultimately achieve organizational goals and customer loyalty (Kotorov, 2003).

Globally, there are several organizations such as Tesco, Toyota, Wal-Mart, and Qantas airways etc that use the CRM effectively to manage the clients' relationships. CRM support these companies in managing the customer relationships, attract and retain the right customers which is a key factor in the success of the company. Building and developing relationships with customers are a challenge, especially when the company has thousands of clients that communicate with it in various ways.

Components of CRM

To achieve a satisfactory result, CRM should allow company managers to better understand its customers to adapt and customize their products or services to various needs. Following are the principal components of CRM which are being extensively used by Tesco, Microsoft, British Airways, Zara etc.:

Sales Force Automation

The CRM streamlines the business activities of sales force, for instance, Inventory control management, processing of sales, keeping track of customer interactions and examining sales forecasts.

Lead Management

CRM leads the management of the organization by giving prompt alerts related to their approach. Management defines its organizational goals by using CRM.

Accounts Management

CRM manages the complete accounting cycle of the organization and keep track of all accounts. This system efficiently manages the cost function and allows the organization to make sure adjustments according to their suitability in order to minimize the overall cost of the organization.

Opportunity Management

CRM keeps track of sales at every stage. It can also customize the long process and procedures which are involved in sales ...