Customer Relationship Management: Benefits, Challenges, and Technology

CUSTOMER RELATIONSHIP MANAGEMENT 1
Customer Relationship Management
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CUSTOMER RELATIONSHIP MANAGEMENT 2
Abstract.
Customer-relationship management involves an organization’s way to manage its
interactions with already existing customers and new customers. CRM is a broad topic with
many subtopics. This paper will discuss one of the subtopics, which is the customer-business
strategy. It consist has six sections, the first being the introduction that explains more about
customer-relationship-management and customer-business strategy. The second section will
discuss the subtopic customer-business strategy, what it is, and how it works in an organizational
set up as well as the people involved. The third section will outline the benefits of the customer-
business strategy. The fourth section will explain the challenges in customer-business approach,
and the next chapter will explain how technology can be used to improve customer services in an
organization. The paper will also give relevant examples. The last section is the conclusion made
after the literature review.

CUSTOMER RELATIONSHIP MANAGEMENT 3
Introduction.
Customer-relationship management involves an organization's way to manage its
interactions with already existing customers and new customers. The organizations observe the
customer's behavior over a certain period to create a better relationship with its customers, and
customer retention has a positive impact on the growth of the company as it increases the sale
made per annum. Nowadays, it's challenging to maintain loyal customers because there is too
much competition from a wide range of similar products, it is, therefore, necessary for a
company to practice CRM where they focus on maximizing the number of sales per year through
building a good customer relationship to acquire repeat customers as well as new customers.
This is achieved through observation of customer's changing behavior, identifying their needs,
and solving their problems through customer business strategies. The stIt has several benefits, as
well as challenges. By use of technology, it has become more comfortable, efficient, fast, and
more cost-effective for organizations to improve their customer services (Woerner and Wixom,
2015).
Customer business strategy.
Customer-business strategy involves carrying out business with maximum customer
satisfaction and excellent customer services. It focuses on creating a good experience for the
customers during, before, and after delivery to build a good relationship with customers who
eventually become loyal customers to your business. If fully implemented, the customer-business
strategy can significantly improve the growth of your organization. It helps you meet the
customers' expectations and become more competitive in the market. Your organization has to
come up with a customer's behavior that helps it grow (Rahimi and Kozak, 2017)

CUSTOMER RELATIONSHIP MANAGEMENT 4
Customer business strategy focuses on three main aspects, which are: trust and reliability,
solving problems responsibly and identifying opportunities and customer’s needs. (Frambach,
Fiss and Ingenbleek, 2016). The strategy focusses on finding out what the consumer expects
through past experiences, finding out why the customers prefer you to your competitors. It may
not only be about the quality of goods and services provided but also the customer service that
makes customers to build trust in you (Peterson and Crittenden, 2018).
Through careful evaluation of customer’s feedback and complaints, you can identify an
opportunity of an unmet need and focus on solving the problem. Organization also have to train
your employees on addressing issues in case a customer complains to them if a customer
complains solve effectively, and the customer is satisfied with the service provided, they will
spread a right word of mouth drawing more customers to your organization. The other hand, if
the problem is not solved, the customer will talk negatively about your organization and thus
keeping away more customers from coming to your organization (Kohtamäki and Partanen,
2016).
An example of an industry using this strategy is the airline industry. The sector is faced
by a problem of having a significant demand that they can meet, some people book flights but
change their minds at the last minute. The plane then flies with an empty seat which has a
negative effect on the cost, they sometimes have more passengers booking a particular flight to
avoid empty seats, In case they all show up, they give an offer as compensation to a willing
person to sacrifice a position so that customers won't feel disappointed (Rahimi and Kozak,
2017).
Benefits of customer business strategies.