Benefits and Competitive Strategies of Customer Relationship Management

Running head: CUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENT
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CUSTOMER RELATIONSHIP MANAGEMENT
Question 1
1a) Identification and evaluation of benefits and competitive strategies
One of the main benefits of leveraging CRM system is that is creates a standardized
process. For example, there are mainly three divisions in the business organization
manufacturing, rentals and sales. Different department or division in the organization has unique
process. There are various stages in the sales process; therefore it needs to market its products
and services by creating campaigns targeted to prospects (Rahimi & Kozak, 2017). However, the
divisions in the department are depended on each other for successful operations. It is essential
for the divisions in the organization to function individually while interacting with each other.
The SugarCRM system benefits the organization by providing those tools to manage measure
and improve the operations and activities of the organization. For example, there are specific
stages in the sales process, the CRM systems helps the team to automate the process of sales
stages from managing approvals to logging information about the communications and
interactions between the reps and the prospects(Koegler et al., 2013).
Another major benefit of implementing CRM system in Tourism Holding Limited is
elimination of managing large amount of manually created spreadsheets and excels sheets, which
was one of the challenges faced by the company. With the help of CRM systems in the
organization, the teams can track the opportunities without stressing on compiling and
organization data into various different documents(Rahimi & Kozak, 2017). This reduces time
and effort of the teams and increases efficiency. The management of the organization can access
the data of different teams automatically. It minimizes the lag time in the company which can be
competitive advantage to the company. For example, it automatically created quotes and

CUSTOMER RELATIONSHIP MANAGEMENT
contracts in pdf file, all the customer information are centralized in one place. The job sheet
allows the employees to check the job status and determine the time when the vehicle will be
ready to pickup (Hassan et al., 2015).
b) Importance of customer relationship management in developing competitive strategy
According to Choudhury and Harrigan, (2014), customer relationship management is
considered to be one of the most critical areas for successfully operating the business
organization. It is the most efficient approach in maintain and building good relationship with the
customers of the business organization. This can help the business organization to create loyal
customers which is a competitive advantage for the business organization. Therefore, it can be
said, that developing bonds with the customers enables the business organization to fins new
levels of success. As mentioned by Nyadzayo and Khajehzadeh, (2016), the CRM system that
has been implemented by Tourism Holding Limited contains important data and information
about the historical view and analysis of the customers. As mentioned above, this reduces the
time lag of the company and helps the organization to analyze the expectations of the customers
and make alterations in the operations of the company.
According to Saarijärvi, Karjaluoto and Kuusela, (2013), one of the strongest aspects of
customer relationship management system in the business organization is that it is highly cost
effective. The CRM system helps the business organization to reduce tedious and manual works,
which has been one of the challenges faced by Tourism Holding Limited. As mentioned by
Symons, (2014), this CRM system reduces the process time and increases efficiency in the
business organization, which in turn helps the business organization to build competitive
strategy.

CUSTOMER RELATIONSHIP MANAGEMENT
Question 2:
a) Stakeholder Impact by THL’s CRM system
The entire success of implementing CRM system lies entirely on the acceptance of its
usage by different stakeholders in the business organization. The main stakeholders involved in
are the senior level management of the business organization, the manufacturing department’s
managers, sales agents, employees and the customers of the business organization (Choudhury &
Harrigan, 2014). Various stakeholders of the organization have different expectations from the
implementation of customer relationship management system. The implementation of the Sugar
CRM in the business organization might positively influence the stakeholders. The CRM system
might enhance the customer experience, reduce the cost of operations, improve the business
reporting and finally contribute towards better governance by the top level management (Nguyen
& S. Waring 2013).. The department heads such as the marketing managers; manufacturing
managers of THL can effectively track the marketing or manufacturing budgets, determine the
marketing campaigns, identify customer segmentation on the basis of various parameters and
help them to monitor the performance of the dealers. CRM system positively impacts the
employees of the organization for example, The CRM system can ease navigation, prevents work
duplication, reduce work load and eliminate paperwork activities. This increases the level of
integration in THL Company. However, implementation of CRM system in the organization
requires new ways of performing or executing the work (Hassan et al., 2015).. Therefore it
requires additional training and development for the employees which is time consuming and
increases the cost of the company. Therefore, it has both positive and negative impacts on the
employees of the THL Company (Khodakarami & Chan, 2014). Further, the CRM system has