E-CRM Implementation, Effects on People and Processes - Case Study Example

Customer Relationship Management Student’s Name Course Professor’s Name University City (State) Date Table of Contents Introduction 3 Business Analysis 3 Customer Satisfaction 5 Customer Loyalty 6 The Critical Elements of CRM 8 Interaction Management 8 Relation Management 8 Quality of Services 9 Behavior of the Employees 9 Effects of CRM on Processes 9 Real World e-CRM Systems 12 E-CRM Strategy Components 13 E-CRM systems 14 Non-Electronic Solutions 14 Cloud Solutions 14 VCRM 15 Mobile CRM 15 Recommendations on Best CRM Tool to Use 16 The Implementation of Mobile CRM 17 References 19 Introduction Customer relationship management (CRM) is a phrase that denotes to the practices, approaches, and technologies that largely corporations that use to manage and also analyze customers’ connections and data throughout the client lifecycle with the goal of cultivating commercial associations with the aim of ensuring that the relationships with clients within the customer relations. Such processes are evident to have a driving sales growth, which increases the profit generated by the company. Electronic customer relationship management (e-CRM) which is also commonly identified as the e-CRM largely entails the CRM functions of compiling information on customers across different channels, assist in making sure that there is high customer retention, creation of a contact between the customers and the company and provision of detailed information on customer personal information such as their buying concerns and preferences, purchase history and concerns (Altaf 2011). This research paper will discuss the requirements of CRM systems in a business environment where it shall use Sparkle jewelries case study to explain the people and processes that may be affected by the implementation of e-CRM within the business. It shall also evaluate the real world systems and then make recommendations on what tools are best suited to each activity. Lastly, the paper shall them provide advice on how business should be handled in the implementation of the recommended tool and the steps that should be taken during the implementation process while highlighting the potential pitfalls and risks that can be experienced and how to mitigate against the measures. Business Analysis Sparkle Jewelry is startup exceptional and a high-end jewelry brand selling the business. The firm advertises through a beautiful statement of fashion and transmits an exceptional brand idea that provides a huge opportunity to advance its brand image. The main goal of sparkle jewelry Inc is to bring to the front a new viewpoint and broader fashion declaration in the industry. The company mainly specialized in gold, sterling silver and diamond products with numerous designs of earrings, earrings, rings, bracelets, and necklaces to fit the fancies and inclinations of various clients. The company is located in California US, but plans to develop into a national market. Through the implementation of E-CRM Sparkle jewelry, the company targets to create, sustain a long term business with its customers who are spread throughout the US market. This will be done through improved and advanced digital communications technologies that will exploit sales to the existing number of customers and then inspire a continued custom of online services within the business. Additionally, Sparkle jewelry will also reap financial rewards through increased sales, customer services, and marketing departments through sales analytics and use of forecasting and new tools with the ability to forecast (Anderson & Kerr 2002). E-CRM Implementation, Effects on People and Processes since CRM is a concept that is used in managing company’s interactions with its sales prospects, customers and clients. It involves the use of technology to organize, automate and synchronize all business practices. The main aim why Sparkle jewelries choose to implement CRM in its processes was to enhance its customer satisfaction and profitability income. This makes CRM be an effective strategic business operation tool rather than a technical one. Through the use of CRM, customers are satisfied with the services and products they receive from the organization. Customers feel as if they got the real value of their moneysince they have a say in what they purchase. Sparkle jewelriesbeing a fashion and high-endjewelries business is faced by many customers who have differing and different taste. Sometimes it is also common to have customers who want their products to be custom made as per their requests. This means high interaction between the business and its customers (Bergeron 2002). Customer Satisfaction The company operates on the prefix of happy customer translates to free advertising for the business. This is because people tend to trust their friends when being referred to something intimate such as jewelries. A satisfied customer is likely to mention where they got the product from and also tell their friends about the business which makes the business to profit more from such measures. On the other hand, a dissatisfied customer is even more likely to destroy the reputation of the business owing to frustrations from one experience. A satisfied customer is likely to tell two people about the product while an unsatisfied customer is likely to tell ten friends, which may lead to the running of the business due to bad publicity(Altaf 2011). Therefore, every customer is treated uniquely and special in a way they feel comfortable as they may either advertise or ruin the company’s reputation based on how they are treated. Sparkle jewelries have a mechanism in place which is focused on putting the business as per the strategies, events, and processes. This is considered to be more profitable and then sell the present customers that finding new customers. Through CRM, Sparkle jewelries have the ability to set its operations that will ensure effective customer retention, making the employees are more service-oriented and customer focused in their daily operations. Businesses in fashion field are all aiming to satisfy their customers more effectively and efficiently than their rivals to achieve a competitive advantage over their rivals. Their main goal is to conserve customer loyalty and also focus on customer-centric tactic in their marketing and organizational strategies (Anderson & Kerr 2002). However, having customer satisfaction is not enough, the ability to change the satisfaction into loyalty is more important. Customer Loyalty In CRM implementation, the communication strategy should be focused explicitly on policies that should increase consumer loyalty and then benefit of the firm. The first step in achieving customer loyalty involves the collection of data from internal and external sources of information. Information is collected from customer services, sales department, procurement, after sales department and the accounts office. This information itis then taken on a holistic approach to each customer requirements on a real-time basis. The pricing strategy is commonly identified as a way through which customer loyalty can be achieved. Since this is a fashion industry, which largely deals with goods of ostentation where buyers buy them because they are expensive.it is important to ensure customer get the value of their money. The implementation of CRM is important since it reduces the cost of operations and increases performance.The cost associated with production and sale of goods is commonly transferred to the end users who are customers. Reducing such cost makes the business operate at a reduced cost which makes the products to have a significantly low cost compared with the customers. This means to increase profitability since the customers will be getting the same quality of products but at a reduced price. Price differentiation is used in different products where products are divided as per their prices (Anderson & Kerr 2002). There are those products which are highly priced, others are medium priced while others are for the low price any customer who enters in the business will have a selection where they can choose from depending on the depth other pockets. (Altaf 2011) The information used in the organization helps the management and all other employees in making fast and accurate decisions when dealing with the diverse type of customers who are interested in different quality aspects. Through the implementation of CRM, organizations are able to discover different requirement its clients and then adjust them to fit the needs of its customers. This is done by amplifying the relationships of competitors and customers in a firm with an aim of increasing the market share in the business field through integrating people, procedures, and technology. The application of CRM then maintains the customer and then increases their loyalty and organization profit. Through effective communication that is promoted through CRM, increased customer satisfaction which leads to customer loyalty is increased through clearing all the implicit problems and vagueness that may exist especially at the top management level (Peelen 2005). Steps should be followed which enhances the loyalty that customers show to an organization, first the management is required to collect and analyze data on verified customer influence in terms of satisfaction and loyalty. Among the factors that lead to customer purchase behaviors include repurchasing, customer acquisition rate and the up and cross selling. Based on research it is evident that the buying behaviors are closely related to the emotional spec in customers (Bergeron 2002). Therefore, appealing to the emotional part of the customers leads to customer feeling satisfied with the product hence loyalty as per the CRM elements. Secondly, ensure that there is a measurable revenue development which then enhances the information perception collected by the organization. Increased Through measuring the cost drop, the firm ensures t has a grasp on the effective cost that should be placed in its products within the market (Peel 2003). Since the employees are the ones who are directly involved with the customers they carry the face of Sparkle jewelries in all their activities within and outside their workstations. Therefore, the process of enhancing employee efficiency is instrumental in overall organization development. This is done through carrying out training and development seminars which are identified as important for the advancement of work ethics and skills (Altaf 2011) The Critical Elements of CRM For customer relations management to work in an effective manner it is guided by elements which work together in an effective and advisable manner to ensure that the management has the ability to satisfy its customers (Anderson & Kerr 2002). Interaction Management For organizations that are aimed at establishing stable relationships with their customers, they are required to ensure they have an interaction through the effective distribution channel. The management should ensure they apply the use of CRM for them to be customized and then organize them through the use of available points. Sparkle jewelry should ensure that it has a toll-free helpline where the customers can call for clarifications and for information, additionally; they should also increase their interactions through attractive feedback and social work. Relation Management The management of relations in a business is done through the evaluation such as the complaint management and the service. This is done through procedures schedules, mechanisms, and activities done with services and products delivered to customers. Sparkle jewelries should ensure that known rates of retention such as the time value of customers, customer satisfaction, and retention should be identified and fulfilled. The customer services should also ensure that they convenience the customer that all feedbacks and complaints are taken seriously through changes (Anderson & Kerr 2002). Quality of Services People are largely interested in the quality of products and services they get from Sparkle jewelries. High-quality services and products are associated with a high positive effect on customer satisfaction that has a important relationship with customer loyalty and the effectiveness of the firms. This is done through meeting customer expectations of goods level and having a wide range of varieties of products and services. Additionally, having numerous stores within the region that will ensure effective and comprehensive customer delivery by satisfying the 4Ps of marketing.Lastly, clients feel appreciated in a firm when their complaints about services and products are tactfully handled. Behavior of the Employees Employees who are identified with conformity with organizational value are more likely to strengthen the connection that may exist between the firm and the consumers. Here, a reverse pattern is more likely to be expected when such an employee has the ability to act through their own behavior. The way an employee treats a client may get stuck in their conscious that the benefits derived from the product. This means an employee will exert a strong impact on an organization reputation and attitudes. Among the behaviors that should be improved among employees includes an increase of the response speed to consumers and then ensure that the employees are respectful and friendly to the customer (Bergeron 2002). Effects of CRM on Processes The implementation of CRM is an important and significant process in an organization; therefore, it should be carried out in an effective and inclusive manner. From the implementation of CRM in Sparkle jewelry business, it was evident that customers have differing economic value to the company which subsequently adapt to their customer offering and their communication strategy. Before the implementation of CRM in Sparkle jewelry, the business was largely had a brand-centered marketing approach (Bergeron 2002). Through the use of customer relations management, the firm has managed to move to the customer-centered approach where it seeks to satisfy the customers through product and service improvement. Through aiming to ensure customer satisfaction, the business has the ability to revolutionize its business performance, which acts as a link between profitability and customer loyalty. Employees are identified as the most important asset in any organization, therefore the human resource department which is tasked with the duty to recruit, hire and train employee is required to get the right people for the job. This is done by carrying out research on the employment market for the skilled and talented people for the job. The hiring process should be comprehensive in that it should filter the prospective employee to remain with the best candidates. This is because hiring skilled and talented persons is largely associated with high performance in a business environment (Blokdijk2008). After the hiring process is finished, the employees should then be trained in service delivery with an aim of making sure that there is an effective customer relationship. Effective customer relationships through CRM are identified as a major cause of improvement in company performance. The management should ensure they identify the organizational competencies that are instrumental in conducting an effective profitable business. The research and development team, which is given the responsibility of making certain that the business is keeping track and being updated with the prevailing market structure should be always up to provide the necessarily required provisions (Buttle 2009). As opposed to the formerly approved bureaucratic nature of the business, breaking the bureaucratic nature of government is instrumental in that it helps in making certain that timely and effective decision are made. This helps in running the business in a more and constructive manner as opposed to where employee are obligated to wait for long before they get a decision. Additionally, it helps in making timely adjustments on their life cycles stages of their customer. Employees should also be aligned with the firm’s processes where they should be trained on how the firm works (Dyché 2002). Different organizations have their ways of carrying out their processes. From thetime in memorial people have always migrated to find better and greener pastures. Even in this technological world, the zeal to find the land of honey and milk is always engraved in the human subconscious. Therefore, Sparkle jewelries should ensure that it develops an appropriate compensation scheme. When workers are well compensated for their jobs, they are more likely to feel at home, hence concentrate on improvedperformance rather than searching for better and greener pastures. Rewarding employees for their work in considered an important and engaging activity within a firm. Since Sparkle jewelries is a fashion and high-endjewelries selling company, it should be more focused and be more market oriented (Fjermestad& Romano 2006). People depended on the word of mouth where they were told on what and where to get products and services. However, with the advancement of technology, marketing, and advertisement of products is now largely revolutionized. This is where companies can align their structures by attracting more people with their market goals in a more convenient manner (Peel 2003). People cannot buy products and services unless they know they exist, Sparkle jewelries should seek to answer the unasked questions of “what is this that I want”. How shall it help or add value to my life? Where do I get it? At what price do I get it? Through answering this questions the marketing needs will be answered making the company reap from the sales (Foss & Stone 2002). Real World e-CRM Systems The electronic customer relationship management is instrumental in today’s business operations; this is because it provides an avenue instrumental in the interactions between businesses. The process of making this interaction successful use software, hand wares, management commitment and processes that are all geared towards supporting business strategies (Hansal et al 2010).Since the world has changed into a global village the electronic customer management is largely propelled by the use and access of internet to virtually every person on the face of the earth (Peelen 2005). Through the use of various internets based platforms, devices and websites people can communicate as if they are together through the use of devices such as laptops, desktops, TVs sets, smartphones, and other mobile devices. For an E-CRM process to be considered successful, it is run through multiple channels that help in the creation and maintenance of analytical database and then optimizing customer relation in the aspect of attraction, expansion, and maintenance (Isakovic 2013) A business that is using E-CRM is likely to benefit from improved customer service, relations, and support. This is done through effective communication from the customers to the business. A business is said to be successful if the products and services it is offering to its customers are as per the client's desires. The ability to satisfy customer needs is seen as the measure of success in a firm. Sparkle jewelries have many departments which all have different roles, however, the duties are all synchronized in a way that they are directed towards achieving the competitive advantage within the market (Kracklauer et al 2004). The business also has the ability to match the customer’s behaviors with the suitable offer. When going into the unknown market, it is important to learn and conduct a research on the market. Through such a research the customer behaviors are noted. This makes the business towards satisfying the behaviors as its processes will be aligned with the behaviors that are suitable. Some customers are interested in quality where they tend to measure quality with the price attached to a commodity or services (Bergeron 2002). For such customer, quality is something they are not required to compromise with. They expect high-end brands. Other customers want relatively cheap products but of high quality where they are interested in making certain that the value of their money are achieved. Measures to ensure such customers are satisfied should be evaluated through the use of effective customer relations management (Kumar & Petersen 2012). The benefit of increasing the customer satisfactions and loyalty acts as a way through which Sparkle jewelries carry out advertisement processes. This is the world of mouth that is spread by its customers who are loyal and can also refer their friends into the business. An increased number of the customer directly translated into increased sales hence increased profitability realized by the company (Mathena et al 2009). E-CRM Strategy Components In a situation where a business chooses to integrate its customer information in an effective manner, it is then likely to do that in three strategies. The first strategy is operational where the business is aimed at making the customer’s need as the first (Isakovic 2013)This is instrumental since they help in avoiding the times bother customers and other redundant processes.Secondly, the analytical strategy is used in carrying out analysis on the company. This helps be a business in establishing a long-term relationship with its customers. Lastly, the collaborative strategy is used due to the improved communication technology where there are different departments in company implementation process through sharing information (Magaña& Whitehead 2010) E-CRM systems Non-Electronic Solutions These are CRM software packages that are instrumental in helping companies in the deployment of CRM activities. Here, the company has a choice of selecting their own solution in order to implement the CRM in a better and a more effective manner. However, it imperative for the business to consider creating a customer-focused culture in its operations within the organization (Peel 2003). The creation can be conducted through the adoption of a customer based managers what are instrumental in the assessment of satisfaction that is used in the development of end-to-end processes used in serving customers. To ensure there is an interactive feedback, the business can craft some questions that can be asked with an intention of helping the customers in solving its problems (Bergeron 2002).Lastly, the business should carry out an evaluation of all its aspects if selling to the customers and its prospects (Nykamp2001) Cloud Solutions It is evident that more CRM enterprises are moving towards the cloud computing solutions. This is the cloud systems are largely web-based hence does not require the need to make an installation or to other additional interfaces and other activities. Here, business may be able to communicate on mobile devices with an aim of accessing efficient services. The expertise derived from the feedbacks is instrumental in the improvement of business services. It is important for the management to first assess the company’s needs where t some enterprises are featured (Isakovic 2013). This should be done through taking advantage of the free trials through comparisons and familiarization on each option that it is supposed to choose from. After selecting the appropriate strategy, it should the estimate the customer strategy for the company budget and ensure that the sales team is skilled and also have the required abilities. The consideration of security is important to malicious hackers can penetrate the system and steal information that is required to stay hidden (Peel 2003). VCRM This is largely a channel that is created to enable companies to communicate with its customer in a better and more effective manner. VCRM has the ability to create a unique and special positive experience through the establishment of customer service and the use of the virtual world (Williams 2014). Additionally, companies have the ability to create given synergies that may exist between the physical channels and then reach a wide consumer base. The system is identified with a character that allows its companies to respond directly to the customer’s requires or any other problem that may arise. Lastly, it also helps in the establishment and sustainment of long-term customer relationships. The use of vCRM is instrumental since it has what can be considered as personalize WebPages that have the ability to recognize different customers preferences and the customize their products and services as per their desires (Isakovic 2013). Mobile CRM This is commonly identified as a service which is created and also aims at acquiring, nurturing clients relationships with the business and maintaining the customers marketing, support and sales and another process within the business. It is commonly preferred by many firms since it uses wireless networks as the medium of delivery to the customers. The use of mobile CRM is instrumental in that it allows the wide range of clients to access the company’s services from all over the world. This is done over the internet where managers can also access the system in a delocalized station all over the world. Due to its inability to provide a complete range of customer relationship activities, it is instrumental for it to be integrated into the CRM system (Peelen2005). For a company to roll out a successful mobile CRM system implementation, it should ensure that its analyze the phase where it should take time to comprehend all the technical needs. This is done to enable it to grow and then change the business. All business, technical; concerns should be addressed through considerations of device security, storage and screen size. The system should be approved by the stakeholders within the organization where training and development should be carried on the employees to ensure that they are familiar with the system (Williams 2014).  Recommendations on Best CRM Tool to Use CRM is adding value to originations, it is, therefore, important to ensure that the best CRM system is selected as a way of making certain that the business derives the best outcome from, in Sparkle jewelry mobile CRM is identified as the best option that the firm should adopt in its operations. This is because it helps in the creation of a stronger services and sales team, mobile CRM delivers an array of advanced features that are designed to reap powerful benefits of cost and time saving. Since the system is mobile it is possible for the employees to keep it up to date with relevant and timely information. Employees can also way access information from the system no matter where they are in geographical aspect. Mobile CRM is also associated with high and increased productions through the use fo less effort since provides a competitive advantage over the organization's competitors within the market. In a situation where one needs a CRM solution to conduct sales customized integration and customer services the unique business, mobile access is identified as the quickest and cost effective. With mobile CRM managers, employees, customers, and other stakeholders have the right to choose any device they wish. Here, a person can choose any device that can access the internet; latest Smartphone’s, tablets and laptops are commonly preferred due to their portability. Mobile access in a business is largely proffered based on the best ability to deploy and also ease to customize it through the removal of the localized ability, instead of one traveling to the company servicers or buildings. Employees can upload relevant information to the system making it more cost effective in its implementation. Lastly, the system can be unleashed in a global capacity where anybody on the face of the earth has the ability to access the information and then use it for their required use. Managers can also diversify their business to new markets without physically being there since they can follow the progress of the business even when back at their offices. The Implementation of Mobile CRM The implementation of mobile CRM is identified as an important aspect of life where one is required to create a comprehensive and complete plan that has detailed blueprints. It is important to ensure everything within the system as a way of ensuring total exclusivity in the system. The intended users and the top organization management should be brought onboard to ensure smooth implementation of the system (Williams 2014).  The first step within the implementation process is to conduct analysis phase where the management should understand the differences that exist between the technical needs and the desires of the different users. This is done through training and development seminars to sensitize the stakeholders on the CRM applications. Individual need and the business goals should all be aligned with the entire organization. This ensures effective prevail during the integration process where the system is required to grow and evolve into a business (Pal 2015).  The second step is the design stage, based on the workability for the system there is always a small space for the user to view every information. Users should be allowed to access the intranet with an intention of recalling specific information within a notice moment. The ability to make available the massive amount of data is instrumental in the provision of an integrated and robust CRM with mobile devices. The website should be created in that it is user-friendly and has the ability to communicate with a host (Kale 2015) Testing should be done to ensure that the system is working as per the requirement any defect or deviation should be collected in an efficient manner the fourth and last step involves the mobile rollout phase where all its usefulness is brought out after both alphas and beta test. The period analysis is important to ensure that system is working in the right format. During the implementation stage, it is important to make the process all inclusive where every stakeholder within the organization should be included. Among the persons that should be considered includes the customers, employees, the management, shareholders, supplier, creditors and the market in general based on the information from the study it is evident that the system is instrumental in customer relations due to the wide range of benefits that are delved from the venture. References Anderson, K., & Kerr, C. 2002. Customer relationship management. New York: McGraw-Hill. Altaf, K M. 2011. Customer relationship management (CRM). New Delhi: Enkay Pub. House. Bergeron, B P. 2002. Essentials of CRM: A guide to customer relationship management. New York: Wiley. Blokdijk, G. 2008. CRM 100 success secrets: 100 most asked questions on customer relationship management software, solutions, systems, applications and services. Place of publication not identified: Emereo. Buttle, F. 2009. Customer relationship management: Concepts and technologies. Amsterdam: Butterworth-Heinemann. 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Harlow, England: FT Prentice Hall. Williams, D. 2014. Connected CRM: Implementing a big-data-driven, customer-centric business strategy. Hoboken, New Jersey : John Wiley & Sons, Inc. Read More