CRM

Implications of Implementing Customer Relationship Management Strategy



Table of Contents

Introduction2

CRM Defined2

Issue of Control in Implementing CRM3

A case of CRM Implementation and its Implications5

The Issue of Control in Light of Theories6

System Theory6

New Management Theory7

Labour Process Theory9

Summarizing the theoretical Account10

Coping with the Control Issues10

The Future of CRM Control13

Conclusion14

References16

Implications of Implementing Customer Relationship Management Strategy

Introduction

More and more companies are focussing on managing their relationships with their valued customers, the customer equity as well as customer assets. This has value associated with it. This value can be divided into two categories. One is the value that the customer gets from the customer also called customer lifetime value and the other is the value that the company gives its customers (Prasongsukarn, 2009, p. 16). Successful company and customer relationship is one which is marked by a win situation for both the customer and the company. There are many technologies that can be used to implement customer relationship management. This has many implications for an organization. The paper discusses the many implications of implementing customer relationship management strategies.

CRM Defined

The development of relationships with customer segments and key customers serve to improve the shareholder value of any business. Customer relationship management may be defined as the amalgamation of information technology and marketing strategies to gain the customer lifetime value. In addition, it is imperative to state that the relationship is successful only when data is used to make sophisticated analyses. Customer relationship management is also a very good way of gaining insight into what the customer wants and gaining market intelligence (Stata,1989,63-74). The CRM can be applied to all types of companies as their main source for generating money to live on as clients. The Call Centres, Techtel, Wal Mart, are just a few companies that have been successful in implementing CRM, because they could raise the motivation of the different strata of the company, developed a business strategy based on real needs customers, remodelled from a viewpoint organizational areas entering the changes.

According to Rosenthal,Masarech, (2003), the many benefits of applying CRM technologies relate to business process re-engineering, quality of relationships, organizational learning, and the overall affect on the financial and operational performance of the organization. This is illustrated from the following graph (Berfenfeldt, 2010, p. 32):

Issue of Control in Implementing CRM

CRM implementation in most organizations takes place with the aid of a CRM consultant organization. This is true because most companies when in the phase of implementing CRM technologies realize that it is very complex and costly. In addition, the whole process can sometimes take place in stages and is very time consuming, especially for bigger organizations. In this context, it is imperative to state that the job of the CRM consultant is restricted to the need for implementation and not on the information technology side. For the selection of CRM software and hardware that may be used, there is a need for the company to hire or recruit an IT professional (Prasongsukarn,2009, 16-29). The cost of the implementation of CRM may be reduced where ...