Understanding Customer Relationship Management: Purpose and Benefits

This essay explores the purpose and benefits of Customer Relationship Management (CRM) as a strategy for managing interactions and relationships with potential and existing customers. It differentiates between CRM as a strategy and CRM systems as tools for sales management, contact management, and productivity enhancement. The essay emphasizes the importance of personalized customer relationships and the use of CRM tools to maintain customer data and communication. It addresses the question of how businesses maintain customer relationships during growth, suggesting strategies such as marketing automation, problem-solving, and encouraging referrals. A real-world example illustrates the impact of customer interaction policies on business outcomes, highlighting the importance of understanding cultural nuances in customer relations. The essay concludes by stressing the significance of getting personal, being transparent, and employing automated processes and systems for fostering customer relationships and acquiring new customers. Desklib provides access to this essay and other solved assignments for students.

Running Head: CUSTOMER RELATIONSHIP MANAGEMENT 1
Customer Relationship Management
Student’s Name
Institutional Affiliation
Date of Submission

CUSTOMER RELATIONSHIP MANAGEMENT 2
For this activity, I have chosen ‘Chapter 1” which is Introduction to Customer
Relationship Management with the topic being the purpose and benefits of CRM. By definition,
CRM is a strategy used by business organizations to manage their interactions and relations with
potential customers and customers. On the contrary, a CRM system is a tool that helps
organizations stay in touch with customers, improve profitability, and have processes
streamlined (Salesforce, 2018). Understanding the difference between CRM and CRM systems is
important because people confuse CRM systems to CRM. The difference is that while CRM is a
strategy, CRM system is a tool used in sales management, contact management, productivity,
among others. The goal of a CRM system is to have the relationships of a business improved
(Management, 2017).
Lessons to be Learnt
The study of CRM and CRM systems enables individuates to understand the essence of
customer relationships in business management. Worldwide, customers need assurance that they
matter be it online or in person. To ensure that the feeling is sustained, businesses need to a
relationship that is more personalized with the customers. To achieve such a relationship,
companies should use Customer Relationship Management tools. Instead of maintaining
customer information via paper files and spreadsheets, such Customer Relationship Management
tools will store data related to the customer including their buying routine and preferences. With
the tools, communication and a proper relationship will be maintained. However, in our case,
conferencing schedules should be made so that customers have time to converse with the
management. It is worth noting that customer’s way of communication should always be
preferable (Barrett, 2017).

CUSTOMER RELATIONSHIP MANAGEMENT 3
Formulated Question
The question that came to mind while going through this topic is “How do Businesses
Maintain Customer Relationships in their Processes of Growth?” from this question, a number
of responses were deduced. Primarily, working smart would be important. Regarding working
smarter, I have learnt that the management of marketing and sales should be automatic and
simultaneous. Considering marketing automation would be important. Instead of manually
managing the email addresses of customers, an organization can use tools that automate leads
then transfer them into different sales cycle stages while ensuring that the interaction with
customers is personalized. In case an organization practices account-based marketing, it would
be important to consider new accounts for its personal projects as well as tracking its progress
using management software. As a result, sales representatives, marketers, and managers will be
informed about the progress of accounts using a single source platform that has an added
advantage of workflow automation (Ardeeser, 2017).
Another way of maintaining customer relationships is through soliciting solutions to
problems and encouraging referrals. The reason why businesses are created is that problems exist
within a given niche. Such problems are then fixed by those given businesses. A continuation of
the same activity in a proper manner will make customers trust the business with the same
problem repeatedly with the key being that the company continues to listen to the problems of
the client. In such a way, the business organization will adapt and innovate instead of preaching
what it is that the company specializes in. the company needs to determine the areas that the
customers suffer most and consider finding solutions to the same. Steps towards solving
company issues begin with the encouragement of referrals. Referral bonuses and reward
programs will encourage clients appreciate the steps made by the business and thus bring them

CUSTOMER RELATIONSHIP MANAGEMENT 4
new clients. As the company works on growing the business while tracking the already existing
clients and trying to coax new ones, it is important to note that the marketing of relationships is
vital. In summary, the best method to nature and foster the existing relationships alongside
acquiring new customers is getting personal, being transparent, and employing automated
processes and systems (Chang, 2006, pg. 270).
Example from Experience
“World Ship” is a business organization that opened its operations in Brazil. However,
the organization decided to change its customer interaction policies to maximize on investment
and increase productivity. Unlike previous occasions when the management carried one-on-one
conversations with customers, the company decided to categorizes clients into three groups
based on the revenue generated by them. The sales personnel then provide attention according to
the groupings. On this regard, the US corporate field perceives the policy as entirely logical since
the clients are still entitled to all the help they might require. According to the organization, the
policy will also help the sales representatives reduce the amount of time wasted on numerous
visits to perform tasks that are more productive. However, the policy does not agar well with
Brazilian customers because they are more interested in business relationships alongside dealing
with suppliers and customers on a one-on-one basis. According to the case, it is the Brazilian
way of doing business when people mingle; it makes them feel special. As a result, tension arose
resulting to customer frustrations. With frustrations, clients created new socio-business models
that directly affected the finances of the business (Kelm & Risner, 2007, pg. 20).

CUSTOMER RELATIONSHIP MANAGEMENT 5
Referencing
Ardeeser, J. (2017). CRM Explained: What is the Purpose of Customer Relationship
Management? Retrieved July 30, 2018, from https://www.jordancrown.com/blog/crm-
explained-purpose-customer-relationship-management/
Barrett, J. (2017). How Small Businesses Maintain Customer Relationships While Growing.
Retrieved July 30, 2018, from
https://www.infusionsoft.com/business-success-blog/customer-service/customer-
experience/how-to-maintain-customer-relationships
Chang, H.H. (2006), Technical and management perceptions of enterprise information system
importance, implementation and benefits.InformationSystems Journal, V.16 (3), pp.263–
292.
Kelm, R., & Risner, E. (2007). Brazilians Working With Americans: Cultural Case
Studies/Brasileiros que Trabalham com Americanos : Estudos de Casos Culturais. Austin,
TX, USA: University of Texas Press, pp. 19-21
Management, S. (2017).SMS | Strategic Management Society. Strategicmanagement.net.
Retrieved July 30, 2018, from
Salesforce. (2018). What is CRM? What do people mean when they say CRM? Retrieved July
30, 2018, from https://www.salesforce.com/eu/learning-centre/crm/what-is-crm/