The Reasons for Conducting a CRM Capability Assessment - Essay Example

? Management Management Detail the reasons for conducting a CRM capability assessment? i. Increasing Benefits through CRM Capability Assessment According to Woodcock (2005, 270), companies are demanding effective tools, which are utilized in storing growing store of customer data in CRM systems. In this case, CRM companies are focusing on adding analytical capabilities to newly developed application. However, a firm is expected to conduct an assessment of CRM capability for different reasons. Apparently, this assessment may be undertaken to facilitate understanding of data, which is applied in creation of a convergence between conventional business intelligence, market research ad CRM (Woodcock, 2005, 270). For instance, CRM vendors are integrating functions of business intelligence via internal product enhancement; in fact, this process is involving seeking support from third parties. In this case assessment of CRM capability is considered as a way of bolting on analytics to operational CRM in order to create work for enterprises. In situations, where CRM customers are involved capability assessment becomes indispensable due to identification if crucial word that would drive vendor features set. There are situations where integration trend in the CRM systems that may render business-intelligence vendors unnecessary; thus, there is need for CRM capability assessment. Moreover, this serves as a way of identifying new opportunities for enterprises to identify substantial ROI from the costly implementation of CRM systems (Woodcock, 2005, 270). Therefore, this assessment enables the organization to identify things that are missing and determining whether capability is still turning data into insights that surpass technology enhancements. CRM capability assessment is also undertaken due to increasing variety of companies, who are concentrating on one or more aspects of analytical CRM. These aspects include clarity in identification of customer preferences, perceptions and opinions. Information gathered during this assessment is fed into critical processes within the entire CRM for increased improvements (Woodcock, 2005, 270). CMR capabilities assessment has enables realization of the contribution made by technological advancement into CRM systems (Woodcock, 2005, 220). In this case, it is affiliating the process of ensuring that CRM systems are meeting firms' requirements. Therefore, CMR capabilities assessment can be regarded as a way facilitating effectiveness of CRM systems, thereby leading to better performance of the business (Woodcock, 2005, 138). Consequentially, this can lead to maximization of profitability in the short term; in fact, this enables identification of growth opportunities and building competitive advantages (Woodcock, 2005, 138). Therefore, CRM capability assessment is regarded as a way of applying strategies that maximize shareholders value by identifying and eliminating short term strategies that destroy assets and failing to capitalize on the companies' core capabilities (Woodcock, 2005, 138). ii. Reducing Risk through CRM Capability Assessment Companies have been subjected to serious attacks from customers due to issues concerning relationship and their way of doing business (Woodcock, 2005, 409). These attacks involves attempts by employees to get involved in activities such as fraud, money laundering, illegal trading and exploitation of loopholes in credit or insurance products. In this case, CRM capability assessment involves use of technology advancement in order to ensure that companies are facing fewer chances for face-to-face for processes such as validation of identities and determining credit worthiness(Woodcock, 2005, 409). Besides, perpetrators of illegal activities in businesses are likely to work in teams through the internet and model telephony for communication in ways that are difficult for authorities to indentify. Therefore, capability assessment of CRM is utilized as a way of bridging this security loophole by the organization. Apparently, government authorities are focusing on offering response to impose requirement upon companies, especially those that offer financial services. These requirements involve tracking and unwinding customers’ transactions. However, these requirements may lead to conflicting of data protection, which is focused on industry specific requirements that are designed to protect customers that are honest (Woodcock, 2005, 409). In this case, in order to avoid this confusion, companies ought to utilize CRM capability assessment through customer management audit. Customer management audit is undertaken through various approaches that are under Customer Management models for conducting capability assessment (Woodcock, 2005, 409). These models include; QCi CM model -CMAT (Customer Management Assessment Tool), Adrian Payne’s CRM Strategy Model, Round’s Customer centricity Model, and IDIC Model. For instance, a company may be subjected to a risk of money laundering, and this calls for monitoring (Woodcock, 2005, 409). In this case, the company is bound to retain and have ability to retrieve information track and report to national authorities. Apparently, this can be facilitates by an effective CRM system; thus, the company is required to ensure that its CRM system is effective, which is a process that requires CRM capability assessment (Woodcock, 2005, 409). Therefore, companies that are involved in financial service companies are seemingly investing in areas that are designed to assist them in dealing with bad customers. Some of the measures undertaken by these companies involve adoption of highly advanced software that is designed to identify new patterns of bad behaviours. In this case CRM capability assessment is utilized in ensuring that data storage, which is required for ensuring that everything is tracked and the system integrations are fully functional (Woodcock, 2005, 409). Besides, it also ensures that data from different sources is gathered to be utilized in the process of detecting activities of bad customers. There has been resent developments in the field of CRM software development, whereby some advancement in database marketing in various firms are able to accommodate large customer masses and high volumes of transaction (Woodcock, 2005, 409). This development are calling for increased reliance on CRM capability assessment to ensure that rule-based products are applied appropriately and that transactions are monitored to identify and filter potential suspicious transactions, which digress from the norms of account and customer (Woodcock, 2005, 409). In this case, these CRM systems are expected to have an effective way of flagging outside limit or out-of-character transactions. Therefore this assessment involves a review of the transactions that seem to be inconsistent with customer's business, and they are reported to appropriate authority. Nevertheless, achievement of this expert and intelligent system, which is utilized in identification of non-linear patterns and relationship within transaction activity, requires CRM capability assessment. 2. Explain how capturing feedback can be used to enhance the customer experience? Feedback for enhancement of customer experience is provided by management team, which facilitates discussion of results that are obtained from customers regarding the need for further action (Woodcock, 2005, 19). After acquiring customer feedback, recommendations are made by management team in a company based on prioritization of action plan, which is agreed upon by all. Companies focus on existing customers, and this had led to realization of gaps in the process of gathering detailed customer feedback (Woodcock, 2005, 230). Customer feedback is gathered across CRM environment and its application is crucial to the company for enhancement of customer experience. Nonetheless, there are situation where leadership and impetus is integrated to facilitate customer understanding, though there is a difficulty in predicting application of knowledge (Woodcock, 2005, 230). According to Woodcock (2005, 231) a continuous process is controllable; in fact, this process requires a feedback controller, which is applied in assessment of the process variable. Moreover, feedback is applied in determining of the process is deviating from desire settings of enhancing customer experience (Woodcock, 2005, 231). On the other hand, capturing feedback offers guidance in application of resources through corrective effort; for instance, it is applied in checking the extent to which errors have been minimized. Therefore, this becomes a closed loop, with control procedures, which end up offering desired effects of the feedback controller is patient enough (Woodcock, 2005, 231). In situations where a feedback controller is applied inappropriately due to assumptions that are dubious, this leads to inefficient timing of adjustments required for enhancement of customer experience. Apparently, adjustments are focused on feedback, analysis and inspection or research. Capturing of feedback to facilitate enhancement of customer experience, managers, who are regarded to be controllers focus on CRM processes. In this case, these controllers focus on gathering feedback from campaigns or actions, and analysis of things that has occurred in the company such as gathering of feeds insight and adjustment (Woodcock, 2005, 231). Managers of customer experience focuses on intentions of taking learning and optimizing improved marketing, sales or processes undertaken in call centres. On the other hand, they focus on understanding customers, whereby they learn more about them. Therefore, through this way they can be able to enhance their experience (Woodcock, 2005, 231). However, extent of capturing feedback is dependent upon the number of customers who responds and not the analysis. Companies are also capturing feedback in market reseach functions, whereby they utilize ability to collect survey data and they embed their results or collected data in to technological systems. In order to enhance customer experience, involves embedding function within company call centres infrastructures (Woodcock, 2005, 233). There are other companies are targeting customer experience management space through captive online panel, whereby several researches are executed and tracking exercises are undertaken to facilitate customer experience (Woodcock, 2005, 233). Enhanced customer experience is indicated by increased company's ability to collate, analyse and deploy information regarding individual customers and segments of customers (Woodcock, 2005, 233). Therefore, information regarding customers is utilized in anticipating and responding to their complaints, hence, this becomes a primary force for optimizing CRM solutions and enhancing customer experience (Woodcock, 2005, 233). Woodcock (2005, 233) argues that feedback is applied in tracking the records that are applied in measurement of ideas based on CRM, and this forms a basis of enlacing customer experience. In addition, the process of enhancing customer experience though the approach of utilizing capture feedback, companies focuses on certain things which include; determining the cause of customers' complains. Other companies focus on determining the ways to address these complains through establishment of complaints handing process; therefore, consumers and companies collaborate to work out their differences and arrive at successful resolution to common consumer complaints. On the other hand, companies are able to capture feedback by encouraging customers to contact them with questions, comments, problems and complaints; in fact, this information should be in a basic form to facilitate understanding (Woodcock, 2005, 409). Besides, companies focus on enhancing their effectiveness in the process of addressing problems identified through feedback from customers and this contributes significantly in the resolution process, thereby providing customers with sufficient contact venues (Woodcock, 2005, 409). Furthermore, there are methods considered in approaching complaints generated through customer feedback in the process of managing customer experience. However, there are companies that are failing to seek feedback in form of complaints from customers without discriminating on the basis of their registration; thus, feedback should be collect from customers that have registered with the company and those who have are not registered (Woodcock, 2005, 409). Companies are expected to undertake a vigorous analysis, in order to determine causes of complaints from customers; in fact, this provides a reasonable basis of capturing feedback to enhance customer experience (Woodcock, 2005, 409). For instance, this analysis may lead to identification that problems are caused by sales practices; in such a situation, a firm may consider either to undertake a redress or remediation exercise. Therefore, this entails communicating with the customer who has filed complaints (Woodcock, 2005, 409). In this case, this can also change the perception of the customer towards the organization and it can facilitate future efforts of capturing feedback for enhanced customer experience (Woodcock, 2005, 409). The practice of capturing feedback in order to enhance customer satisfaction has been regarded as a way of building a plat formed for ongoing communication between the organization and customers (Woodcock, 2005, 409). In this case, this calls for recognition of plans that can provide opportunities for capturing data when the customer is receptive. In fact, this is considered a strategy of building capability and acquiring an ongoing personalized communication with customers, which is based on their preferences (Woodcock, 2005, 409). Therefore, this contributes to enhancement of customer satisfaction in the most cost effective channel for organizations. Furthermore, feedback can enhance building of infrastructure and set of processes that facilitate recognition of new customers, which have transacted with an organization for the first time, and this forms a basis of triggering relevant welcoming activities (Woodcock, 2005, 409). References Woodcock N. (2005). Customer Management Scorecard: Managing CRM for Profit. London: Kogan Page Publishers Read More