Customer Relationship Management Loyalty Program Assignment
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Added on 2021-06-14
Customer Relationship Management Loyalty Program Assignment
Added on 2021-06-14
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Customer Relationship Management Loyalty ProgramCRM(Customer relationship management) program is system that manages a group ofpeople, technology and processes which pursues to comprehend the customers of a company.This is an approach that is integrated for the management of relationships through focusing onretention of the customer and development of a relationship. CRM has advanced from thedevelopments in information technology as well as changes in organization in the centricprocesses of a customer. Companies that implement CRM successfully ought to bear the goodfruits in loyalty of customers and profits in the long run. However, many companies have notbeen able to implement CRM effectively mostly since they could not comprehend that theprogram of CRM needs company wide, customer focused and cross functional re-engineeringprocess. Despite the fact that a huge part of the CRM comprises of the technology, regarding thesolution of CRM as technology would mainly lead to failure. Implementation that is successfulin management demands for an approach that is integrated and balanced to technology, processand people. Technology and CRMAccording to Xu, Yen, Lin & Chou (2012), CRM requires to be viewed beyond beingjust a technology whereas the technology being viewed as the strategy of CRM enabler. Variousapplications of technology may be recognized which are utilized in the advancement of thestrategy of the CRM. (Xu & Walton, 2015 and Zaayman, 2014). The CRM system comprises ofthree major constituents: Operational CRM which comprises of applications that face customers like the forceautomation of sales, automation of enterprise marketing and support and service of customer(Chen & Popovich, 2013). Call centers for customers are also a part of the operational CRM andare domineering in the systems of CRM. (Anon, 2010). This enables recording of the customerinteractions which is used by the organizations in tracking the customer. Analytical CRM that deals with analyzing of data created in the operational CRM for buildingthe customer picture. This component deals with storing, capturing, extracting, interpreting,processing and reporting of the data of the customer sored in the warehouses of the data. Thismakes it possible for the organization to evaluate the behavioral patterns of the customer indeveloping strategies of promotion and marketing. According to a study carried out in UK, 25%
of the surveyed organizations showed that analytical CRM was being utilized. (Xu & Walton,2015).Collaborative CRM utilizes technologies of communication that are traditional and new forenabling customers in interaction with organization. This component enables response of a levelthat is better to the needs of the customer through incorporation of all stakeholders of the chainof supply like the suppliers among others. (Xu & Walton, 2015). Strategies of channel orfunctions which offer interaction point between the channel and customer are involved in thiscomponent as well. (Shahnam,2010)An extra category that came up later is the e-CRM. This component enables organizations toobtain the maximum contact via all the channels of communication mainly through intranet andinternet. e-CRM comes out as an approach that is web-centric to contacting customers (Xu &Walton, 2015). CRM ToolsFacilitation of communication between the customers themselves and the organization isa major component of any strategy of the CRM regarding all kind of aspects of inclusion of thedesign of the product, relationship, channel preferences, service of the customer and making itpossible for the organization to tune its strategy.From the point of view of Gubser (2011), a number of the technologies that are interactivewhich offer customer communications that are interactive and care comprise of:Emails that are intelligent: Emails continues to be an essential technique of contact forthe customer for a percentage exceeding 70% of the total number of businesses carriedout online. When the queries of the customers are quickly and effectively responded tothrough the intelligent email, the cost and time of the customer are reduced. This resultsto an increase in the satisfaction of the customer and in turn increases rates of retention aswell as the loyalty. Chat that is collaborative: in the case that customers want to enquire about thedetails of shipping or a product, the function of a live chat that is collaborative allowsthem to click on an icon of customer service that is live and displays a chat box. Thisenables the customer care representative to be able to access the history of the customerwith the organization and in return enables them to interact with a customer in aneffective manner.
Telephony: the integration of the Computer telephony (CTI) may be appliedsince the buttons of call-back can be applied on the pages of the web and once clickedthey bring on a new window whereby the customer can give out their phone numbers thatcan be used to reach them in case of any queries. This leads to increase in the possibilityof selling as we as acquiring a new customer. Self-help: they comprise of intelligent FAQs as well as the traditional FAQs andagents that are virtual or bots which can converse with customers through chat, offerresponses as well as even provide suggestions like a person who is live. VoIP: this atechnology that uses the LAN or WAN of an organization to transfervoice and data. This allows organizations to communicate with customers directlythrough the use of headphones and speakers.In order to come up with a CRM program that is successfully implemented, the followingstrategies should be put into consideration: identification of reasons why one needs the CRM andexpectations by identifying areas that need to be improved and the issues that require attention.(Noel, N. & Janisson, S., 2015.). After identifying the reasons, one needs to find a suitablevendor for the CRM by exploring further in order to find correct system of CRM for a businesssince there are a lot of options provided as it will affect implementation to a great extent.(Gustafsson et al, 2015). Then comes the budget development. There is also the need to come upwith a budget that is realistic that can be used for the expenses of the process of implementation.Then follows the identification of departments and staff to handle the process and training them.In order to ensure that the best practices are followed during the process of implementation,selection of two members that are key and making them part of the team of the project should beconsidered. Training of the CRM end users and their training materials should be taken care ofseriously through devotion of effort and time. A blueprint of the required progress of CRMshould then be drawn which details how one desires to proceed with the implementation of theCRM. Finally, one should ensure equal participation from IT and business. (Rigby et al, 2013). Among the main advantages of the system of CRM is that it makes the process of customerretention to be smooth and results to increased profitability from customers since the system ofCRM assists in supplementing and complementing the physical relationship of the customer’seffort by automating the touch points of the customer. The system ensures that there are minimal
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