While many customers are now accustomed to buying products online, other customers are still highly wary of using such systems and exposing personal information on such websites. These challenges will be discussed in the next part of this paper. In order to gather all of the data needed to meet customer needs and provide information to suppliers, sales force, managers, and other parties in the business process, the business needs to use the aid of cookies to track customer surfing details and to record what types of products customers purchase from other websites.
The problem is that some customers regard this as an invasion of privacy and refrain from shopping online because they are aware that firms are monitoring their actions. Other challenges posed by the use of customer relationship management systems include the lack of appropriate executive support as some customers feel that they do not receive adequate service online while some business executives also feel that these systems are not satisfactory for use in organizations and refrain from using them.
Additionally, many firms lack rationale when they decide to use customer relationship management systems Ang, For example, a firm who has a highly personal relationship with customers and thrives upon the personal contact that it enjoys with its customers may not benefit from the adoption of a customer relationship management system as it may lose the element of being able to personally attend to customers.
One of the major flaws of CRM systems includes their lack of adaptability to different cultures. Contemporary business research has found that customers belonging to different cultural backgrounds tend to act differently when interacting with businesses and have varying preferences regarding the type of contact that they find suitable in business settings.
While consumers belonging to masculine cultures may prefer or be comfortable with using technological solutions and communicating with customer service personnel online, customers belonging to feministic cultures may prefer more personal contact. The appropriate implementation of these systems requires communication, culture, and coordination which helps employees adapt to the systems more appropriately Campbell, It may be difficult to integrate the system with other departments in the organization, which will result in the adoption of the system to be expensive.
The system may not coordinate well with other accounting and finance software which may cause the organization additional unnecessary expenditure in attempting to adjust the customer relationship management software with their existing technology, existing business processes, and the people associated with the business Campbell, It is evident that while the customer relationship management system offers numerous advantages to firms and customers, there are specific challenges that the implementation of the system faces, especially in the realms of resistance shown by customers in allowing an invasion of their privacy.
The next section of this paper will outline the manner in which Dell Inc. Dell is a globally renowned company offering customers leading global systems and services and the company required the aid of a customer relationship management system to integrate its customers and other global sales teams with the business.
Previously, the company used multiple systems, internally designed by the company, which were used in each of the regions that the company operated in. However, the company wished for a flexible and convenient system which was globally accepted and used widely. While the company aimed to find a solution themselves, it was proving to be highly expensive. Thus, the company implemented the use of SalesForce CRM, which is a software allowing the company to integrate with technological partners, customers, employees, and other agents in their business processes.
The company required a solution to gather feedback from its 80, employees worldwide and also wanted to begin a global partner program in the near future for which it required an appropriate communication platform enabling it to efficiently and effectively communicate with potential technological partners.
Thus, the use of SalesForce CRM integrated various departments within the organisation and also allowed the organization to communicate with other organizations using the same interface Dell Case Study, The company solved several of its problems using the customer relationship management system which included communicating with approximately 3 million customers everyday and also collaborating with 80, employees worldwide.
The use of the system enabled the company to extract the top ideas for innovation and better understand what customers were looking forward to by gathering and processing customer feedback on the system. Top ideas were generated through comments and voting upon the posting of various opinions on the system Dell Case Study, The company greatly benefitted from the implementation of this system as it generated over 2, ideas on innovation in the first week and approximately ideas related to employee feedback regarding business processes.
The company has been able to use vital customer feedback in order to design desktops and consumer notebooks and also left Windows XP as a pre-installed operating system in the computers because of customer demand. The technology implemented in the customer relationship management systems enabled the company to track main technological trends and develop products accordingly Dell Case Study, Using the Salesforce CRM system enabled the company to integrate various players in its business processes via one platform and also enabled the company to design some its own software solutions which allowed the company to enhance its relationship marketing strategies.
However, one of the problems that the company faced with the implementation and use of the Salesforce CRM system was user adaptation of the system. Teaching users worldwide how to operate the various functions that the system offered was an obstacle that the company overcame through offering training sessions on the use of the system and teaching employees and other users worldwide how to use the system within fourteen days.
Thus, because Salesforce CRM is an easy-to-use system, users were able to adapt to the new technology easily and within a short period of time. Dell significantly benefitted from the use of the system and the system proved to be cost-effective, efficient, and highly beneficial in increasing the revenue of the company. Obstacles such as adaptation were overcome through the provision of training sessions and through company focus upon implementing and using the system.
While the initial installation and provision of training for the system was expensive, the system aided Dell in collaborating with both employees and customers and enabled the company to devise its own technology.
The system was used in various manners by the company to solve its current problems and can be used in other ways in the future. Thus, customer relationship management systems can prove to be an addition of value for a company and an important tool used to integrate processes, people, and technology to enhance relationships within the organisation and outside the realms of the organisation as well.
The next section of this paper will discuss the main points emphasized in the paper and provide recommendations regarding the use of customer relationship systems and for Dell Inc. There are various advantages associated with the use of customer relationship management systems which include the functions such as sales force automation, direct marketing, customer service, field service automation, and others.
Hence, the use of such systems promotes convenience, access to information and information-processing, and enhances the efficiency of business operations. Moreover, it also allows the integration of people, processes, and technology. This has been illustrated in the case of Dell who use SalesForce CRM to integrate inter-department functions with other organizations that it wishes to partner with.
However, the drawbacks of using customer relationship management systems include the issue of customer privacy, user resistance, lack of adaptability, and the inability to prepare the software for use by different cultures. Accordingly, it is recommended that customer relationship management software not be used in place of personal contact but can be used as an additional resource helping keep customers and businesses connected. If the business deems it necessary to track customer information through cookies, the company must aim to ask customers for permission and inform them that this will enable the business to serve them better through products customized and tailored to suit their needs.
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International Journal of Business and Social Science Vol. 2 No. 10; June Customer Relationship Management and Its Relationship to the Marketing.
The International Journal of Customer Relationship Marketing and Management (IJCRMM) addresses critical success factors for CRM implementation, activities that are affected by the use of CRM programs, and consequent performance outcomes. IJCRMM documents the role of CRM in different sectors and industries and identifies marketing activities that are affected by its usage.
The Impact of Customer Relationship Management Implementation on Cost and Profit Efficiencies: Evidence from the U.S. Commercial Banking Industry Alexander Krasnikov, 1 1 Alexander Krasnikov is Assistant Professor of Marketing, School of Business, George Washington University. Customer relationship management (CRM) is a combination of people, processes and technology that seeks to understand a company's customers. It is an integrated approach to managing relationships by focusing on customer retention and relationship development. CRM has evolved from advances in information technology and organizational changes in customer‐centric processes.
Customer Relationship Management and Firm Performance Tim Coltman University of Wollongong, Customer relationship management and firm performance. Journal of Information Technology, 26 (3), Customer Relationship Management and Firm Performance Abstract Customer relationship management (CRM) is increasingly important to firms as. This article examines Customer Relationship Management, or CRM, from the perspective of strategy formulation and implementation. We commence by reviewing the origins and role of CRM and highlighting the importance of adopting a cross-functional approach to CRM strategy formulation. We examine alternative approaches to CRM strategy development and, using an 'interaction research' approach.