Relationship Management: CRM Strategies and Challenges in Russia

This case study explores the challenges and strategies related to Customer Relationship Management (CRM) implementation in Russia, focusing on a case involving AMIR Limited and referencing the unsuccessful CRM project at Mashkin. It identifies key strategies for CRM project implementation, reasons for the failure of CRM implementation at Mashkin, the current state of CRM practice in emerging markets in Russia, and additional challenges faced by companies in Russia when implementing CRM projects. The analysis covers aspects such as cost overruns, data transfer issues, the transition from a centrally controlled economy to a market-based economy, and the impact of foreign investment on CRM practices. The study concludes that while there are significant opportunities for CRM adoption in Russia, companies must address challenges related to consumer focus, business principles, and adapting to a changing business environment. Desklib offers a variety of solved assignments and case studies to aid students in their studies.

Running head: RELATIONSHIP MANAGEMENT
Relationship Management
Name of Student:
Name of University:
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................2
Identification of the Strategies for the CRM project implementation.............................................2
Identification of the reasons contributed in terms of the failure of CRM implementation at
Mashkin...........................................................................................................................................3
The current state of CRM practice in emerging markets in Russia.................................................4
Additional challenges considered by the companies in Russia in implementing the CRM Projects
.........................................................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

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Introduction
The customer relationship management (CRM) is considered with the main approach on
how a company interacts with its customer. The data analysis on the customers is depicted with
the customer’s history to improve the business of the company and customer relation with the
main motive of customer retention1. Some of the main discussions of the study are related to the
aspects which are considered with the identification of the CRM project implementation and the
contributing factors which led to the failure of the CRM implementation at Mashkin. The next
aspect is related to the identification of the present state of the CRM practice in the emerging
markets with the use of examples from Russia. The final section of the study has identified the
various scope of challenges which might be faced by Russia during the implementation of the
CRM projects.
Identification of the Strategies for the CRM project implementation
The focus of the CRM approach under the Mashkin were considered with the sharing of
same objectives with the inclusion of supervisor service to the customers and including
additional benefit of the core product. Secondly, the companies were identified with the focus of
recognising and retention of the key customers. Thirdly, the company worked on developing a
customer profile centric approach. Fourthly, the companies also intended to improve the overall
managerial decisions and workflow2.
1 Kumar, Vineet, and Werner Reinartz. Customer relationship management: Concept, strategy, and tools. Springer,
2018.
2 Khodakarami, Farnoosh, and Yolande E. Chan. "Exploring the role of customer relationship management (CRM)
systems in customer knowledge creation." Information & Management51.1 (2014): 27-42.

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The main implementation of the CRM program was seen to be consisting of the relevant
CRM program. The CRM taskforce was considered with the managerial level employees. The
large firms are depicted with the resources considered for buying comprehensive custom
systems. The smaller firms in many cases were forced to use the low cost and off the shelf
products. Some of the various types of the other strategies are taken into consideration with the
building an in-house system and budgetary constraints prohibited the outright purchasing of the
completely integrated system. The consultant’s input was considered with the strategy of task
force determination, implementation process including the requirements for software, selection
of vendors, consideration of the project timeframe and personnel included in the training of the
users3.
In addition to the above stated constraints it was also ensured that the CRM was
seen with substantially greater than the budgeted system. Moreover, during the data transfer
process contact notes and client profiles were aggregated in a chronological order 4.
Identification of the reasons contributed in terms of the failure of CRM implementation at
Mashkin
Some of the main reasons for the failure at Mashkin can be directly be considered with
the different aspects which are seen to be based on the increasing cost of the new project. In
addition to this, some of the other challenges of the project were identified with the controversial
issues related to the cost overruns which began originating at each board meeting. During the
3 Nyadzayo, Munyaradzi W., and Saman Khajehzadeh. "The antecedents of customer loyalty: A moderated
mediation model of customer relationship management quality and brand image." Journal of Retailing and
Consumer Services 30 (2016): 262-270.
4 Eichorn, Frank L. "Internal customer relationship management (IntCRM) a framework for achieving customer
relationship management from the inside out." Management 2 (2018): 1.

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process of the data transfer several client files along with the client profiles and notes were
transferred which were not seen to follow the chronological order through the year for locating
the recent entries and moving the same in terms of the useable rendering. Most of the files were
affected with the long-time clients5. This was mainly observed with the individuals engaged with
more than 10 or more years the company. These clients were particularly considered to go
through lengthy and cumbersome process and navigation of the data as a result of the transfer of
the data. Several types of the involved in the heavy sales volume and attempting to use a more
less than optimal system. This is seen to be generating inferior results for the company6.
The current state of CRM practice in emerging markets in Russia
The board of AMIR is depicted with the telecommunication division which was seen
with expanding the business operations after investigation with the Soviet Union for the financial
services. The AMIR’s board of directors sought the information on the CRM practices in Russia
with the specific focus on the implementation on the CRM strategy for the Russian firms. At the
outset of the collapse of the Soviet Union in 1991, the market reform in Russia has resulted in
several changes which are based on the business climate. As per the present situation the
economic restructuring reform has been depicted to be promoting the economic growth in Russia
by developing the transition from the central government and taking control of the market-based
economy. This has been depicted with the consideration of the various types of the information
which are based on the economy with large opportunities for the foreign capital and investment.
5 Navimipour, Nima Jafari, and Zeynab Soltani. "The impact of cost, technology acceptance and employees'
satisfaction on the effectiveness of the electronic customer relationship management systems." Computers in Human
Behavior 55 (2016): 1052-1066.
6 Taylor, Jacob, et al. "Customer relationship management system and method." U.S. Patent No. 8,972,876. 3 Mar.
2015.

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The CRM conceptualization was introduced in Russia in 2000. In the present times the
finance and the telecommunication industries which are depicted as one of the largest sectors
presently employing the CRM strategy. In to address the various problems Russia further
accelerated the CRM market in July 2009. This was seen with the motive to assist the
organization with the training and distribute the publications for increasing the CRM awareness
and conduct the overall research. The main goal of the CRM Association considered with
building the CRM awareness and adopting the best practice for the business7.
The initial CRM congress was held in December 2013in which the best Russian CRM
projects were presented with the adoption of the new CRM systems. More than 350 top
managers from Russia took part in the congress. The industries considered the financial services,
pharmaceutical, marketing and other industries.
Additional challenges considered by the companies in Russia in implementing the CRM
Projects
The main challenge was depicted with the Russian industry for processing inventory,
which was mainly focused on supply instead of the demand for the consumers. The Russian
markets used to concentrate on the processing inventory with main emphasis on the supply
instead on the consumer demand. Due to this consideration the Russian companies were seen to
ignore the consumer. Due to the economic restricting the Russian companies transitioned from
the central government control to a market-based economy with several opportunities focused on
the foreign capital and investment. Moreover, the changing business environment forced to
adopt new methods. There has been other indication for the foreign and Russian partners which
7 Hasan, Abdulla Al-Towfiq. "Customer Relationship Management (CRM) Practices of City Bank in Customer
Retention Perspective in Bangladesh." Global Journal of Management And Business Research (2018).

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are considered with the underlying business principles. This has led to different types of the other
problems which are based on the consideration of the collectivistic approaches to business and
dependency on the functional and the capital aspects over human assets. Moreover, a large
number of the foreign investment companies started the joint ventures in collaboration with the
Russian companies8.
Conclusion
The study on the identification of the Strategies for the CRM project implementation is
depicted with the with the sharing of the similar objectives with the inclusion of supervisor
service to the customers and including additional benefit of the core product. Secondly, the
companies were identified with the focus of identification and retention of the key customers.
Thirdly, the company worked on developing a customer profile centric approach. Fourthly, the
companies also intended to improve the overall managerial decisions and workflow. In addition
to this, the study on the identification of the reasons contributed in terms of the failure of CRM
implementation at Mashkin has been discerned with different aspects which are seen to be based
on the increasing cost of the new project. In addition to this, some of the other challenges of the
project were identified with the controversial issues related to the cost overruns which began
originating at each board meeting.
8 Hassan, Rana Saifullah, et al. "Effect of customer relationship management on customer satisfaction." Procedia
Economics and Finance 23 (2015): 563-567.

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References
Eichorn, Frank L. "Internal customer relationship management (IntCRM) a framework for
achieving customer relationship management from the inside out." Management 2 (2018): 1.
Hasan, Abdulla Al-Towfiq. "Customer Relationship Management (CRM) Practices of City Bank
in Customer Retention Perspective in Bangladesh." Global Journal of Management And
Business Research (2018).
Hassan, Rana Saifullah, et al. "Effect of customer relationship management on customer
satisfaction." Procedia Economics and Finance 23 (2015): 563-567.
Khodakarami, Farnoosh, and Yolande E. Chan. "Exploring the role of customer relationship
management (CRM) systems in customer knowledge creation." Information & Management51.1
(2014): 27-42.
Kumar, Vineet, and Werner Reinartz. Customer relationship management: Concept, strategy,
and tools. Springer, 2018.
Navimipour, Nima Jafari, and Zeynab Soltani. "The impact of cost, technology acceptance and
employees' satisfaction on the effectiveness of the electronic customer relationship management
systems." Computers in Human Behavior 55 (2016): 1052-1066.
Navimipour, Nima Jafari, and Zeynab Soltani. "The impact of cost, technology acceptance and
employees' satisfaction on the effectiveness of the electronic customer relationship management
systems." Computers in Human Behavior 55 (2016): 1052-1066.

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Nyadzayo, Munyaradzi W., and Saman Khajehzadeh. "The antecedents of customer loyalty: A
moderated mediation model of customer relationship management quality and brand
image." Journal of Retailing and Consumer Services 30 (2016): 262-270.
Taylor, Jacob, et al. "Customer relationship management system and method." U.S. Patent No.
8,972,876. 3 Mar. 2015.