Role of information system in customer relationship management - Coursework Example

Table of Contents How to ensure strong service and satisfaction 3 Service System 4 Strategic Management 6 Support Automation and Automation Process 8 References 11 Role of information system in customer relationship management How to ensure strong customer service and satisfaction Customer satisfaction and service are vital components in the survival and progress of any business. it is for this reason that organizations invests heavily in ensuring that customer service reaches a level that will satisfy and woe the customer towards coming for more. Businesses need to maintain customers in a manner that will make them appreciate the brand, products or services being offered by the businesses. This paper looks at ways in which a strong customer service and satisfaction can be maintained in a business. First, know the needs of every customer in the market so as to avoid forced creation of demand where it is none existent. Secondly, it is important to perform tests with a view of building an understanding of the desires of consumers within the market segment. This helps build up innovative ideas useful in identification and solving possible problems that may arise due to customer expectation about the product or service the business offers. Thirdly, being true to your customers can help the business a greatly. All deliveries of goods to customers should always be done at the right time. Where delivery may not be possible on the agreed schedule, proper communication with the customer is vital. Fourthly, plan well and perform periodic training of the team you work with in order to uphold business reputation and trust. It is also important to train a team that will enhance flexibility and effective communication skills. Fifthly, always appreciate your customers. It is worth sending thank you messages to your loyal customers. This strategy will likely yield positive results that help in positive growth of the business. Moreover, always create loyalty programs among your customers. This can be done through unique gift offers or special promotions targeting long time customers in the business. Always approach issues related to your customers in a mature manner as though you are dealing with a long time friend. This can be done by being sincere to them on issues that may arise in the day to day running of the business. It is important to promise what you can achieve other than giving unrealistic expectations. This is because empty promises tend to anger and frustrate customers making them shun any future transaction with the business. It is for this reason that a successful business need to set correct expectations since it helps in retention of customers. Develop a customer philosophy that will direct the way employees interact with clients. The philosophy developed should be able promote respect and constant appreciation of customers. This is a key component in customer satisfaction and retention. Lastly, develop a quick response time whenever there is a blame game in business transactions. Effective communication and admittance of a mistake can really yield marvelous results in the long term. This should be followed with a communication on what you plan to avert similar mistakes in future. Customer Service System Customer service refers to various business practices aimed at providing services to clients during and after a business transaction. These services are aimed at building customer satisfaction and retention. Customer service system refers to blending of procedures, people and technology with a view of serving customer needs in a way that will promote profitability and achievement of business objectives. It is important to note that implementation of an effective client service system may be quite difficult when all the stake holders does not understand its importance. In addition, all the stake holders should be willing to buy into using the system otherwise its contribution to the business may be futile. There are numerous reasons why organizations need to buy into the use of a client service system. These include; Increased returns –a company with good customer service system provides better customer services as compared to a company that does not have such systems. Enhanced client loyalty –customers like buying in companies that have an ample client service systems. Such a system further promotes customer loyalty hence more profits owing to their high life time value in the business. A long life time value of a customer promotes profitability in an organization since the business will not seek to secure new customers but instead will focus their attention and resources towards further expansion of the business using the current customers. Solving communication problems –customers can help build of destroy reputation of a business. Implementation of an effective customer service system will help solve communication of bad experiences by discontented customers to potential and existing customers. Changes in the corporate world –a good customer service system should adapt to changing client needs. Such a system helps an organization to quickly adapt to global changes in the corporate world. A good system plays a vital role in resolution of complaints from customers in an effective manner. Client feedback –there is a need for companies to check on possible competitors. A client system provides valuable information about these competitors. Coordination among various departments –customers often demand a lot from an organization. These demands should be addressed adequately through proper coordination among various departments. This is only possible with the use of a common client service system. Strategic Management “Strategic management refers to an ongoing process used to assess and manage a business” (Thompson & Martin, 2010). The process seeks to devise managerial methods to curb existing and potential competition. It is management tool that helps an organization focus its energy by making sure that all parties and shareholders are geared towards achievement of goals and objectives set for the company. It further assists an organization adjust accordingly with the changing corporate environment. This is meant to guide and shape the way in which organizations do its operations. The method devised depends on the size and nature of the organization. For instance, a transnational organizations need to implement a more structured strategic model owing to its size, scope and stakeholder operations and requirements. On the other hand, Small and Medium Enterprises may choose to incorporate capitalist approach to strategic management. This is because of their small sizes, scope of operations and number of activities to be processed. General approaches that can be used include classical, evolutionary and systematic. It is important to note that strategic methods employed in management don’t operate independently but rather works subjectively and in a context dependent manner. Strategic management involves analysis of problems in an organizational environment, decision making and acting based on findings with a view of creating and sustaining competitive advantages. Strategic management therefore entails analysis of organizational goals made up of vision, mission and objectives. Based on strategic management, organizations need to identify competitors in the market segment and choose the most appropriate mode of responding to their completion. The decisions may affect the internal as well as international operations of an organization. The decisions put forth must be acted upon otherwise they are of no use formulating them. It is therefore a requirement for organizations to implement the decisions in a manner that will foster profitability in an organization. In order to gain success in implementation of strategies formulated, it is important to perform SWOT Analysis of the entire organization. The analysis will help the executive to identify Strengths, Weaknesses, Opportunities and Threats from which decisions will be made. The management should allocate enough resources for this purpose and modify proposed changes into reality. In addition, strategic management seeks to understand the reasons behind firm’s success and why some companies outsmart others in profitability. It is all about designing ways through which sustainable competitive advantage can be created and sustained over a long period of time. In this regard, firms should create competitive advantages in the market place that are unique, valuable and difficult for rival companies to copy. Sustainable competitive advantages should be sough through effectiveness and quality service. This can be done well by doing same things as rival companies but in a better manner geared towards customer satisfaction and retention. It is all about doing different things or activities using different ways and in a manner that does not resemble the way competitors in the market perform. “The success of multinational organizations such as Wal-Mart and southwest airlines owes their success to uniquely developed systems that have remained consistent and difficult to copy for a long time” (Ter Hofstede, 2010). This has given them sustained competitive advantage. A company that has a smart strategic approach in their operations gets guided towards accomplishment of their goals. “It is not wise for companies to imitate whatever a competitor does as this leads to destructed returns caused by price competition” (Cook, 2004). It is worth noting that policy formulation and implementation is a key component in strategic management. This is because all projects and plans often come into operations once decisions have been made. This should be followed by a continued evaluation using a balanced scorecard to assess the extent at which the organization’s objectives have been achieved. In this regard, it is possible to know the overall performance of the business. In conclusion, strategic management is a continuous process; therefore its success in the business should be assessed on a regular basis. Support Automation and Automation Process Automation refers to the art of creating and applying appropriate technology to monitor, control and deliver goods or services in a manner that it runs automatically. “Support automation is applied in many areas such as manufacturing industry where a wide range of goods are produced” (Sadler & Craig 2003). The goods range from foodstuff and pharmaceuticals, chemicals and fuel among others. It is also applied in transport industry, that is, automotive, rail as well as rail. Other areas include; utilities, defense and facility operations. Automation cuts across various functions of industry ranging from installation and maintenance, procurement and management. The products obtained from industries are also subjected to automation during marketing. It is important to note that automation applies a wide range of mushrooming technologies which include among others; cyber security, robotics, electro-optics, sensors and wireless communication just to mention few. “Automation processes uses computer technology and engineering skills in an effort to achieve optimal results in production” (Denove & Power, 2007). The process of automation can diagrammatically be represented as follows The process involves three stages which are control, optimization and execution as shown in the above work flow diagram. “The workflow can be used to automate complex business operations on a complete web based system where people will be able to interact with the system” (Cook, 2004). Since the model is a flexible one, it can be used to speed up business operations while ensuring total visibility and control on what happens within an organization. The workflow is very important in the survival of any business as it seeks to unify all business stake holders, processes and information concerning all operations at a given time. It therefore offers tools that allow automation, supervision and analysis based on business flow. The system allows people and technology to interact and working in a parallel manner through integration of daily business processes and applications. Automation tools can be used to root tasks and documents to the intended persons in the business cycle. By doing so, business processes will flow in a quick, accurate and efficient manner. In addition, all system users will be in a position to access the system in a direct and easy manner. Similarly, the system flow will ensure there is a clear separation between user and role specific users. “It also offers a central monitoring sector that checks effective job completion and delivery” (Rainer & Cegielski, 2011). Finally, the workflow limits the use of manual processing hence less processing cycle time. Further, the system offers guaranteed productivity and adherence to process rules. In conclusion, companies which incorporate this automated system stand to gain in their day to day implementation of policies and right execution of organizational process. References COOK, S. (2004). Measuring customer service effectiveness, Burlington, VT, Gower DENOVE, C., & POWER, J. D. (2007): Satisfaction: how every great company listens to the voice of the customer? New York, Portfolio. SADLER, P & CRAIG, J. C, (2003): Strategic management, London, Cogan Page THOMPSON, J. L., & MARTIN, F. (2010): Strategic management, Andover, Cengage Learning. TER HOFSTEDE, A. (2010). Modern business process automation: YAWL and its support environment. Heidelberg, New York. RAINER, R. K., & CEGIELSKI, C. G. (2011): Introduction to information systems, Hoboken, N.J., Wiley Read More