Customer Relationship Management in UAE Context- Programs and Technologies, Issues and Trends - Essay Example

Running Header: Customer Relationship Management Systems Your name: Course name: Professors’ name: Date Table of Contents Table of Contents 2 List of Acronyms UAE-United Arab Emirates CRM-Customer Relationship Management IIR-Institute for International Research WEF-World Economic Forum EIU-Economic Intelligence Unit LTV-Lifetime value USA-United States of America UK-United Kingdom Definitions Customer Relationship Management Systems are Information systems that track all the ways in which a company interacts with its customers and analyze these interactions to optimize revenue, profitability, customer satisfaction, and customer retention. Introduction and History Customer relationship management entails use of information systems and technology usually in form of software to document and supervise customer data. The interactions and feedback from past, current and prospective customers are recorded to allow the organization understand the market dynamics. All customer interfacing institutional functions such as sales, marketing and technical reinforcement are well-organized and synchronized (Kumar, 2012). The measure ensures that all customers are served to their satisfaction. The UAE focuses on the CRM to provide their customers with sufficient information through four steps that include enquiry, product details, and follow-up and, closure details. The history of CRM in the UAE dates back to the innovation of technology in data management. The system has been adopted in most organizations and hence increasing customer satisfaction. The UAE has registered an increase in its customer base according to the World Economic Forum (WEF) and the Economic Intelligence Unit (EIU). The CRM has been embraced by all business structures within the UAE region. The small, mid-size and, large scale business corporations are using the CRM to run their customer services (Alison, 2011). The CRM has become a chief factor in boosting companies across the UAE in regards to their customer relation services. Since the UAE is a center for international investments, the CRM is a vital tool in propelling growth of businesses and encouraging investments because of the satisfactory customer relationship management system. Institute for International Research (IIR) ranks the UAE among the top 10 countries across the world with the best CRM. The findings depict the significance of CRM in the UAE region. Market Analysis The UAE has been ranked top 10 in the use of CRM systems in the world by the IIR. The market analysis shows that the region utilizes the technology behind CRM to improve its business ventures. The market analysis of the CRM system considers several factors to evaluate its acceptability and effeteness in the market. One of the factors is Life time value (LTV) where the comprehensive cost of adding a customer to the company is considered. The CRM is proved to be effective when the costs are little compared to the gain of acquiring customers. Two, program profitability allows the organization to measure a customer’s preferable LTV where customer loyalty to the program is discerned through follow-ups (Alison, 2011). The third market analysis factor is basic segmentation of the customers. The factor takes three forms; (I) reductive (II) attitudinal and (III) behavioral. The forms allow the organization to communicate the right information to the right audience at a strategic time to improve the CRM systems. Next is the advanced segmentation analysis approach which touches four vital aspects of the CRM system. The advanced segmentation aims to understand, reach out and communicate with customers through the four aspects that include geo-demographics, attitude of the customer towards the organization or its product, psychographics and lifestyle and, purchase behavior of customers. Lastly the market analysis for the CRM focuses on the retention analysis of the system. The loyalty of customers is evaluated and computed depending on the numbers garnered over the years. Market analysis allows the organization or business to evaluate the response of customers to their CRM system and, therefore, understand their competitiveness within their market of operation. Main Providers The UAE has a number of companies that provides the CRM system across the region. The companies are both local and international. The main providers include Vertek Business Solutions that provides schools with CRM systems to serve all stakeholders in the educations systems. The system is available online and offline making it flexible for users to access. The second supplier is Microsoft that supplies CRM enabled applications such as Microsoft office excel. The application allows companies to tabulate customer information in a synchronized fashion. Informap Technology Center is another main provider of CRM systems in the UAE (Alison, 2011). The company provides courier delivery CRM systems that enhance service delivery for customers across the UAE region. The UAE is a center for multi-business ventures and, therefore, the Informap Technology Center is a vital aspect for the CRM dependent courier companies. Duotek Solutions is another also a main provider of CRM systems in the supply chain sector in the UAE. The system allows procurement procedures to be done efficiently since the CRM is a communication platform between the relevant individuals in the supply chain industry. Xenon Media Fz Llc provides CRM systems for the shipping and clearance sector in the UAE. The region receives goods through the port and this system makes it possible the process to be achieved efficiently. Smart Business General Trading Co. L.L.C, delivers the systems to hospitals to ensure that health care in the UAE is tackled through an informed system. Both patients and doctors can communicate through the CRM system provided by the Smart Business General Trading Co. L.L.C, Pros and Cons The CRM system allows the organization to properly identify their target customers and acquire them at reduced cost. The system enables the organization to channel their resources into the target group of customers. The system can be used to show inadequacies in vital areas of an organization. The aspect is used to analyze customer services through increased sales. Some vital information about the company and its products are automatically available for customers increasing efficiency in service delivery (Eid, 2012). Analyzing the information through the CRM system allows reporting and data documentation to be accurate. Through the system, sales, marketing and customer care department work in concurrence to improve customer relationship. The customer’s are assured of data security since the CRM system regulates the access of data by restricting the persons allowed to access the data. All customer data is kept in one place in the CRM system. Security concerns arise in this occasion in case the system is breached. Installing and implementing the system is costly since training of staff and customer sensitization about the system is mandatory (Alison, 2011). The CRM system works together with the tech support personnel to ensure effectiveness. An expert in the tech world must be hired for the system to stay afloat. The system requires constant upgrading of information to allow customers to attain satisfaction as part of services they are entitled to as past, current or potential customers. The automated aspect of the system simplifies work for the staff. However, human interaction is an essential aspect of organizational functions. Strength and Weaknesses in Respective of the Chosen Topic The system has several weaknesses that should be reviewed before installation and implementation into an organization. Some of the weaknesses include broad strategic goals where the system is widely used but poorly executed in practice. Another weakness is poor definition of complex projects. There has been little testing of the system before implementation. The UEA has shown hesitance in adopting the On-Demand alternative. The process efficiency of the system is not measured thus; the quality of output is not determined. Some of the strengths of the CRM in practice across the UAE include quick decision making because of sufficient information given through the system (Eid, 2012). The customer makes informed decisions regarding their interests. Next is the time management at the workplace is effective since most of the systems applications are automated. The strength of the system is also seen in the improved marketing activities through enhanced contact segmentation and targeted audiences. The system is a credible source of sales and production predictions. Comparison and evaluation UAE vs. International level Comparing the CRM systems use in the UAE to the rest of the world shows that the region has high level of usage. The region is ranked 10th worldwide and is placed in the same category as the economic power houses of the world. The UK, USA and UAE have an equal spread of CRM usage across their territories. All business structures in the UAE region have embraced the CRM systems and the trend is similar in the international level considering the USA and the UK. The CRM has a wide coverage in upcoming business and investment ventures attracting investors to the region. The ease to access main providers of the system locally shows the level of advancement in the use of CRM systems. The IIR records that the spread of CRM systems across the UAE is on the rise with entrepreneurs using the platform to improve their customer service delivery (Eid, 2012). The market analysis of the CRM influence on customers has impacted on lifestyle, purchase behavior and, lifetime value. The UAE is the first Arabic region in the use of CRM systems in various sectors within the region. The commerce sector uses the system to acquire new customers across the world since information on organizations is available online. Trends, Perspectives Trends and perspectives of the CRM system are bound to improve as in the prospective. Some the trends to note are cloud-based CRM systems that allows the system to capture vital information from social media and communicate it to customers. The system focuses on the comments and recommendations of customers across social media (Eid, 2012). Application usability has become increasing vital in the CRM systems. The interface comes into play in this occasion because users are going for automatic systems to simplify work and save time. All the loose strings of an organisation will be pulled together through the CRM system. The system integrates with major business systems allowing organizations to learn about new trends in the market and customer preferences. Some of the perspectives to be considered in the CRM system are the adoption of information systems that allow mobile communication with clients. The business perspective of CRM systems is still under scrutiny considering most organizations are not equipped with skills to evaluate the system. The complexity of the system is perceive from two angle; technological and institutional angles. These perspectives outline the loopholes that the system has in practice (Eid, 2012). Recommendations Before installation of the CRM system the organization should evaluated the performance level and its application to their need. Main providers should specify the services rendered by the systems to their clients. The CRM system is a vital segment of all organisations since it keeps the customer informed and the organization connected to its customers. Conclusion In conclusion, the purpose of the CRM is to keep records of all clients of an organization in a well-organized manner. The UAE is one of the leading users of the CRM system that prove the efficiency of the system. Main producers of the UAE are found both locally and internationally. Trends in the CRM are aimed at improving the systems and reducing its cons and weaknesses. The strengths and pros of the system are encouraging for business persons. The CRM system is significant for running an organization in the contemporary society. References Alison Diana. (2011). UAE CRM and Customer Experience Management Excels. CRM Global Retrieved I4 April from < http://www.crmsearch.com/uae-crm.php#sthash.yv4gXUtr.dpuf> Eid, R. (2012). Successful customer relationship management programs and technologies: Issues and trends. Hershey, PA: Business Science Reference. Kumar, V. (2012). Customer relationship management: Concept, strategy, and tools. Berlin: Springer. Read More