CRM technologies paper (Customer Relationship Management) - Essay Example

How CRM Technologies Help to Build Relationships relationship management or CRM is one of the management strategies that connect the relationship between information technology and marketing. It is a term of information industry for software; methodologies as well as general internet capabilities which help the enterprise handle customer relationships in an efficient and organized manner (Ueno, 2006)..In the present global marketplace, every organization wants to gain certain amount of competitive advantage and for achieving this they want to retain, develop as well as build a mutual relationship among the internal and external customers.

Internet and telephones are helping the organization to build a good relationship with the customers. CRM is a vital resource for the organization. The main goal for the organizations is to convert customer relation keen on higher profitability by growing rate of repeat purchase as well as dropping customer purchase costs. CRM helps the organization in understanding the customer expectations and behaviors. CRM also helps the organization to focus on profitable customers who can obtain long-term profit.

Digital transformation has fetched a huge and rapid reconfiguration and restructuring in present day business - the reformation of interaction, products as well as payments from the customers to the organizations and also from organizations to suppliers is generating much consternation and bafflement among the organizations decision makers. Managers in every organizational level are closely engaged in this turbulent period. They are being required to reconsider customary definition of competition, value and service.

Certainly a method for this great alteration has been a volatile development of internet. Moreover, the internet adaptation as well as the technologies adaptation has changed the path that many of the businesses developed in terms of strategies, competencies and models. E-Business is the process and strategy of meeting business drivers and also initiatives with the technology drivers as well as information services especially relating the internet. It plays a crucial role to the organization for profit maximization and sustain in this dynamic world.

It is a technology driven. It essentially increases the value of the organization. Customers are the essential part of the organizational vision and strategy. So, it can be easily said that building a long term as well as loyal relationship is a key to the profitability for the organization. Furthermore, modern technology has made a good classification in between the consumer and vendor. The synergistic outcome of CRM supports the life cycle of customer and provides company with a 360° feedback of customer.

Moreover, this feedback is provided with certain information of the company like retention of the older customer, discovering the market niches, increasing revenue and achieving competitive advantage. The core competencies of CRM are as follows:Marketing and also fulfillment:Replying email automaticallyAutomatically and timely response to the customerCustomer billing and service:Help desk application done automatically to improve the effectiveness and efficiencyOn-line as well as electronic billing systemQuick response to the customer’s complainSales: Inventory integrationSynchronizing, coordinating and managing the customer interaction over different communication channelsRetention and loyalty:Assisting the organization to identify profitable customersMake possible one-to-one relationship by capturing full information(McAllister, n.d.).

Therefore, it can be said without hesitation that CRM is the vital component to improve the relationship with the customers in the business world of today. ReferencesMcAllister, T. M. (No Date). Customer Relationship Management. University of Maryland. Retrieved Online on May 27, 2010 from http://faculty.ed.umuc.edu/~meinkej/inss690/mcallister.pdfUeno, S. The Impact of Customer Relationship Management. Harvard University. Retrieved Online on May 27, 2010 from http://www.wcfia.harvard.edu/us-japan/research/pdf/06-13.ueno.pdf