Customer Relationship Management (CRM) Systems - Coursework Example

Relationship Management System relationship management system is a strategy that has been extensively implemented to manage a company’s interactions with its clients, customers and sales prospects (Brown 2000). The system uses technology to automate, organize and synchronize the business processes- chiefly sales, marketing, technical support and marketing. CRMs create focus on businesses and customers. The main intent and purpose is to find new clients, retain the existing clients and regain former clients.

All types of CRM systems aim for a common goal of making opportunities, to improve the service quality a business provides to prospective and current clients, through technology. These systems pool information sources from marketing, sales, customer service, sales and accounting databases to create one comprehensive tool. First, is the operation CRM systems, they focus on software applications integrating disconnected data sets in a business. The system has the capability to focus on customers and provide information from multiple databases on a single platform.

The business employees can then provide quick service to the customer without need for many software tools to collect customer information.Another type of CRM system is the analytical CRM. It focuses on gleaning the perception of the customer from the available data in a business. These systems can use data mining to look for patterns and trends and can solve customer problems by focusing on widespread problems. Last but not least, we have collaborative CRM systems that move outside the business to include external contacts such as suppliers, vendors and distributors.

The system allows businesses bring additional data to their customers’ service. They make the information available to the customers by use of a website or extranet. The main intent is to enable users work interactively with a business to improve service provision (Dyche 2001)OpenData by Socrata is a sample CRM system that is online. From my observation, this CRM maintains clients’ records and activities. For instance, it captures clients’ information from several sources, such as, an entry form, Google maps and discussion boards.

It then harmonizes this information and presents it in a tabular form. Additionally OpenData CRM has the functionality of editing that available information and adding more information. In the available classification, OpenData CRM falls under the operational CRM system category. This is because it focuses on applications that integrate disconnected data sets and focus on the customer information squarely.The core purpose of any CRM, like any business initiative, is to make more profits (Finnegan 2007).

In the perspective of a CRM, this goal is achieved by chiefly providing better service to the customers than the competitors can manage. CRM systems can reduce wastes, costs and highlight complaits, this is because they can shine light on issues that are normally ignored. These systems, CRM, facilitate instant market surveys as well as direct communications with the customers providing constant and reliable market reaction to the company’s products and services.As a positive effect, the operational CRM has promoted customer loyalty by streamlining the communication process.

It has provided prompt response mechanisms and increased the level of presence on the internet. The products designed by our company are more tailored to the customers liking since we are able to capture the exact needs of the customer. On the other hand, the negative impacts of the CRM on the business have resulted to downsizing of the personnel. The automated system has led to the business needing fewer staff members from customer relations. Additionally, the over reliance on the CRM has made the business service lose the personal touch.

ReferencesBrown, S.A.(2000). Customer relationship management: A Strategic Imperative in the world of e-business. New York: John Wiley & Sons. Dyche, J. (2001). The CRM handbook: A Business guide to customer relationship management. Boston: Addison-Wesley Professional.Finnegan, D & Willcocks, L. (2007) Implementing CRM: From Technology to knowledge. New York: John Wiley & Sons.