Customer Relationship Management in IBM - Essay Example

Relationship Management Table of Contents Table of Contents 2 Introduction 3 Thesis ment 3 Executing the Explicit Bargain 3 Explicit Bargain in IBM 4 Data Collection Tools in IBM 5 Role of Interactivity in IBM’s Customer Relationship Management (CRM) Strategy 7 Role of E-mail in IBM’s CRM Strategy 8 Role of Wireless Communication in IBM’s CRM Strategy 8 Conclusion 9 Works Cited 10 Introduction “Premier relationship companies” are those organizations that successfully develop good relationships with the customers by creating an appropriate cost structure and business arrangement. An organization which can successfully attain new customers and make them loyal can be termed as a premier relationship company. It generates good value for the company in the market. The relationship between an organization and its customers provides a framework for developing a “premier relationship company” which is mutually beneficial for customers as well as for the business. Thesis Statement The paper will analyze the term ‘explicit bargain’ and data collection tools in relation to a consumer packaged goods company named IBM for developing good relationships with the customers. Furthermore, the paper will also evaluate the role played by interactive media, e-mail and wireless communication technology to enhance better communication with the customers and to be recognized as a “premier relationship company” internationally. Executing the Explicit Bargain Developing as a good “premier relationship company” begins with creating effective association with the customers. In order to enhance the relationship there is need for understanding their requirements and provide personalized products or services accordingly. Conducting dialogue with customers can provide information through exchanging opinions in the form of mental association. By the use of explicit bargains, organizations can manage all the queries of customers and accordingly collect related information about them so that their requirements are recognized. For any organization to engage explicitly with the customers there must be a mutually beneficial dialogue between them (Peppers, D. & Rogers, M., “Managing Customer Relationships: A Strategic Framework”). There are several ways that organizations can communicate with the customers e.g. cooperative communication technologies. The cooperative communication technologies are considered as significant mechanisms for creating explicit bargains. They can interact with customers directly though utilizing separate media. An explicit bargain is a kind of agreement that an organization makes with the customers to save their time, get their attention and receive their feedback. In explicit bargain, dialogue and interaction play vital parts in order to boost the relationships. Explicit bargain techniques are valuable for an organization to recompense the customers in the form of offering discounts, refunds and better facilities, in return for the involvement in the interchange process. Organizations use websites, e-mails, voice calls and text messaging among others for creating explicit bargains, with the desire for making consumers realize advertising communications and react to the marketing and sales promotion offers (Peppers, D. & Rogers, M., “Managing Customer Relationships: A Strategic Framework”). Explicit Bargain in IBM The customer relationship management strategies help IBM to enhance the relationship with the customers. In order to make explicit bargain, IBM uses online strategies such as social networking strategies and loyal chat room, and provides the customers the opportunity to give feedbacks and opinions regarding the products and the services. The websites of IBM can respond to the e-mails send by the customers who desire for gaining information. IBM maintains constant dialogue with their customers and constantly examines the communication with them. It helps to monitor the views of the customers and thereby develop products or modify them according to their requirements (Canzer, B., “E-Business & Commerce (Strategic Thinking & Practice”). Data Collection Tools in IBM IBM uses several methods for collecting information regarding customers. It uses several data collection software which enables the organization to acquire precise information from wide customer base (IBM, “SPSS Data Collection”). IBM also uses the websites for collecting data about customers. Its Decision Support System (DSS) helps to collect log data of customers who had visited the websites. It enables IBM an easy access to the past enterprise wide IT usage information and usage of customers (IBM, “Tivoli Decision Support for z/OS”). IBM also collects the data about customers from e-mail requests they get from them. The company uses record-keeping form which provides customers an extensive list of subjects asking them to select their most desired elements though informative messaging. This method helps to understand the requirements of customers and to comprehend when the customers are more probable to purchase a product sold by IBM. Furthermore, IBM also uses market survey to gather data about customers’ desires and purchasing trends (Canzer, B., “E-Business & Commerce (Strategic Thinking & Practice”). Role of Interactivity in IBM’s Customer Relationship Management (CRM) Strategy The interactive marketing is the evolving development in modern day’s business environment which had transformed the transaction oriented marketing to conversation marketing (Sheth & Parvatiyar, “The Evolution of Relationship Marketing”). Interactivity is the capability to address the customers, collect their necessities and address them in a manner which can illustrate that the organization cares for their requirements. The emergence of internet technology has facilitated the interactive marketing and has increased the ability of organizations to collect customer information online and communicate with them easily (Arizona, “How to Develop an Interactive Marketing Strategy”). With respect to IBM, it uses internet for interactive marketing. The enormous growth of internet users throughout the world and their adoption of digital technology have enhanced the effectiveness of interactive marketing of IBM. IBM use e-CRM in order to interact with the customers internationally (Zverkov & Panibratov, “IBM – Strategy to Success”). IBM also uses the social networking as a part of their interactivity with the customers. The interactivity of IBM helps the company to raise innovation and business swiftness by making it easier for customers to search, reach and co-operate with IBM. The interactivity of IBM provides the customers an integrated communication experience and therefore assists in becoming more efficient towards becoming a “premier relationship company” (Dines, “IBM’s Strategy for Taking Social Networking to the Enterprise”). Role of E-mail in IBM’s CRM Strategy The internet provides valuable method for IBM to cooperate with the wholesalers and the resellers in order to develop customer loyalty. Internet acts as a communication and data collection tool for IBM to provide better services to the customers. IBM communicates with the customers’ through customized direct mail by using e-mail and other media in order to reach them. E-mail provides the opportunity to manage database of customers for easy handling (Hutt, M. D., & Speh, T. H., “Business Marketing Management: B2B”) Role of Wireless Communication in IBM’s CRM Strategy The wireless communication strategy also plays a vital part in CRM of IBM. Wireless communication can help to connect with the employees and customers all the time. The increased utilization of 3G technology by people has made it easier for IBM to implement wireless communication in their CRM strategy. IBM uses sensor technology, Bluetooth technology and wireless LAN as a tool to stay connected with the people (Zverkov & Panibratov, “IBM – Strategy to Success”). Conclusion The basic approach for becoming sa “premier relationship company” is to provide the customers a chance to communicate what they need, to remember them, and accordingly provide them those requirements. Improved communication with customers can help a company to provide exactly what they require, which in turn increases their relationships. IBM has demonstrated appropriate skills and successes in market to be stated as a “premier relationship company” in the industry. However, it is required to develop good customer relationships to become a premier relationship brand. With its effective CRM strategies, IBM has effectively managed profitable association with the customers and it is considered as one of the most valuable brands appreciated by several people. Works Cited Arizona, Ferry. “How to Develop an Interactive Marketing Strategy”. February 18, 2012. Documents, No Date. Canzer, Brahm. E-Business & Commerce (Strategic Thinking & Practice Dreamtech Press, 2004. Dines, David. “IBM’s Strategy for Taking Social Networking to the Enterprise”. February 18, 2012. Wainhouse Research, 2008. Hutt, Michael D., & Speh, T. H. Business Marketing Management: B2B Cengage Learning, 2009. IBM. “SPSS Data Collection”. February 18, 2012. Business Analytics, No Date. IBM. “Tivoli Decision Support for z/OS”. February 18, 2012. Products, No Date. Peppers, Don. & Rogers, Martha. Managing Customer Relationships: A Strategic Framework John Wiley and Sons, 2011. Sheth, Jagdish N. & Parvatiyar, Atul .“The Evolution of Relationship Marketing”. February 18, 2012. International Business Review, No Date. Zverkov, Vladimir N. & Panibratov, Andrei Yu. “IBM – Strategy to Success”. February 18, 2012. St. Petersburg State University, 2002 Read More