Customer Relationship Management

Customer Relationship
Management

Table of Contents
Introduction......................................................................................................................................3
LO1..................................................................................................................................................3
AC1.1 Key features of customer relationship management...................................................3
AC1.2 Benefits of good CRM................................................................................................4
AC1.3 Impact of quality management systems on CRM.......................................................5
1M1 Evaluation of the methods used to ensure customer satisfaction...................................6
LO2..................................................................................................................................................7
AC2.1 Evaluation of processes for achieving effective CRM...............................................7
AC2.2 Assessing role of internal staff in achieving CRM.....................................................8
AC2.3 Assessing the role of external stakeholders in achieving effective CRM...................9
2D1 Analysis of impact of employee engagement on CRM................................................10
LO3................................................................................................................................................11
AC3.1 Analysis of use of loyalty schemes in gaining information about customers...........11
AC3.2 The way in which information gained in making decisions.....................................12
3D1 Evaluation of methods which help in segmenting customers as a part of CRM process12
LO4................................................................................................................................................13
AC4.1 Reviewing CRM in an organisation..........................................................................13
AC4.2 Improvements to processes of CRM.........................................................................14
AC4.3 Improvements in the role of staff in promoting good customer relations.................14
AC4.4 Implementation of the improvements.......................................................................15
4M1 Providing feedbacks on the plan along with required amendments............................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

Introduction
Customer relationship management is the most important process of an organisation as it
helps in maintaining effective relations with customer so that they can be made loyal towards the
company which is important in achieving a competitive advantage in market. CRM is the
combination of practices, strategies and technologies which help the company in managing and
analysing customer interactions so that better customer services can be provided which can help
in retaining customers so that sales can be maximised. CRM system help in gaining data related
to customers from different channels or points of contact like company's website, social media,
direct marketing etc. so that the ability of company in dealing with customer issues and
maximising customer satisfaction can be increased (Bhat and Darzi, 2016). In this report
Amazon is taken which is a large online retail business which deals in a large number of
products so that a large customer base can be reached and large profits can be achieved. In this
report the importance of CRM in an organisation, influence of quality system in managing CRM,
processes which can help in maintaining better relations with customers, role of internal and
external stakeholders in achieving effective CRM, loyalty schemes that help in achieving
effective CRM, the CRM of Amazon, the ways in which improvements can be made etc. so that
better customer relations can be made.
LO1
AC1.1 Key features of customer relationship management
Customer relationship management (CRM) is a model which is efficiently applied in
organisations so that better relations with customers can be maintained which can help in
increasing the loyal customer base so that the sales and profitability of company can be
increased. It is important that technology is involved in maintaining effective customer relations
so that their demands can be monitored and they can be provided with products and services
which can help in increasing customer satisfaction. Following are the most important features of
CRM which must be considered while applying the strategies which can help in attracting
customers: External relationships: It is essential that better relations are maintained with people who
help in supporting internal networks so that business to business relations can be

maintained like with suppliers, partners and distributors so that an effective network can
be set which can help in the success of business (Sigala, 2018). Data inspection: It is essential that the customer data related with the customer base of
company is inspected timely which helps in determining the changing needs and wants of
customers so that they can be offered with products and services which can help in
creating high customer experience and increasing sales of company. Customer interaction channels: It is related with the various ways through which a
company interacts with its customers like social media, company website etc. so that the
interaction can be made influential so that better customer experience can be created. It is
important that Amazon monitors all its channels of interaction which can help in making
effective customer relations. Customer retention: In order to make effective customer relations it is important that
existing customers are retained by company by fulfilling their needs and wants in an
effective manner so that customers can be made loyal towards the company (Santouridis
and Veraki, 2017). Customer complaints: It is essential that customer complaints are taken care of by the
company so that they can be satisfied and prompt action is taken in order to deal with
their complaints. This help in increasing their trust in company and increasing customer
satisfaction as they can be provided with effective solutions on time and in an efficient
manner.
 Customer satisfaction: This the most important element of CRM as it help in increasing
the effectiveness of company in dealing with customer needs and wants so that a string
bind can be developed by the company so that they can be made loyal towards company
and increasing its sales.
AC1.2 Benefits of good CRM
Customers of a company provide it a competitive edge in market as with the help of
increasing loyal customer base the probability and productivity of company can increase along
with improving its brand image. With the help of effective CRM better customer satisfaction can
be created which can help in making the company sustainable for a long run in market.
Following are the benefits of having good CRM in Amazon: