CRM Technology, Marketing, Customer-Centric Culture & Financial Impact

This report explores the impact of Customer Relationship Management (CRM) technology, marketing capabilities, and customer-centric organizational culture on the financial performance of business organizations. It emphasizes how CRM technology is used to acquire and manage customer da...Read More

Running head: CUSTOMER CENTRIC ORGANIZATIONAL CULTURE
Impact of CRM Technology Capability, Marketing Capability and Customer-Centric
Organization Culture on Companies Financial Performance
Name of the Student:
Name of the University:
Author Note:

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Position paper:
Customer relationship management technology, marketing capability and customer
centric organisation culture boosts the generation of revenue. The business organisations today
place great emphasis on customer relationship management technology to acquire and manage
immense customer database. They market their products according to the needs of the customers.
The apex management bodies of these business organisations today even frame their
organisational culture taking into account the preferences of the customers. They capture
customer data using CRM technology which they incorporate into their organisational culture.
The paper would point out how CRM technology, appropriate marketing and customer oriented
organisational culture form the base of revenue generation of the business organisation.

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Table of Contents:
Position paper:.................................................................................................................................1
Introduction......................................................................................................................................4
Background:.....................................................................................................................................4
Aims of the Research.......................................................................................................................4
Objectives of the Research:.............................................................................................................4
Hypothesis.......................................................................................................................................5
Literature review:.............................................................................................................................6
Customer satisfaction:.....................................................................................................................6
Organisation culture:.......................................................................................................................6
Customer centric organisational culture and revenue generation model of business organisations:
.........................................................................................................................................................7
Customer relation management and marketability of products:....................................................11
Research Methodology..................................................................................................................13
Overview:......................................................................................................................................13
Research Outline............................................................................................................................13
Research Design............................................................................................................................14
Research Approach........................................................................................................................14
Sampling Technique and Sampling Size.......................................................................................14

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Data Collection Technique............................................................................................................15
Data Analysis Technique...............................................................................................................15
Relevance and Credibility..............................................................................................................15
Ethical Considerations...................................................................................................................16
Timeline.........................................................................................................................................16
Conclusion:....................................................................................................................................17
References:....................................................................................................................................20

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Introduction
The business organisations today use customer relationship management to enhance their
marketing capability and create a customer centric organisational culture to improve their
financial performance (Crane, Kawashima and Kawasaki 2016). The topic of the research will be
‘CRM technology, marketing capability and customer-centric organisation culture can
boost financial performance in business organisations.’
Background:
Customer Relationship Management has recently became one of the liveliest issues and
the focal point of most of the business organizations in the globe. CRM is mainly based on the
belief that the establishment of a sustainable Relationship with customers is the main process of
bringing success to the company. It helps to retain and gain trusted and potential customers
respectively. The research on the following topic will be helpful for the modern era business
research. The main aim of the research will be to determine whether CRM technique can be
useful tool to enhance customer centric culture in the financial performance of an organization.
Aims of the Research
The research aims to gain an understanding of the Customer Relationship Management
(CRM) technology capability, Customer centric organizational culture & Marketing Capability
of an organization and its impact on the organization’s financial performance.
Objectives of the Research:
The following are the objectives which the research seeks to achieve:

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1. To prove that customer relationship management helps companies to market their
products.
2. To prove that customer relationship management enables business organizations to
develop a customer centric organizational culture.
3. To prove that CRM and customer centric organizational culture enhance revenue
generation in business organizations.
Hypothesis
H0- Customer Relationship Management technology can help to enhance customer centric
culture and the financial performance of an organization
H1- Customer Relationship Management cannot help to enhance customer centric culture and the
financial performance of an organization
Problem Statement
The research will mainly address the different issues related to the implementation of
CRM in the different organizations and the different problems related to the financial aspects of
the following organization.
Research Questions
1. What is Customer Relationship Management and how is it applied in contemporary
business?
2. How does a CRM tool enhance a proper financial performance in the business
organization?
3. How can culture and CRM work together to enable sustainability?

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Literature review:
Customer satisfaction:
Srinivasan and Saravanan (2015) mention that customer satisfaction or CSAT as the
measurement how goods and services exceed expectations of the customers. Business
organisations emphasise on customer satisfaction and long term relationship building with
customers. Agnihotri et al. (2017) mention that customer satisfaction has become important for
companies to gain a loyal base of customers which attribute them with repeat business.
Khodakarami and Chan (2014) further point out an important fact in this regard. They mention
that business organisations today consider customer information and knowledge about customer
needs as important assets. They, in fact, use software aided technology called customer
relationship management or CRM to acquire, manage, share and use the information about
customers. Nyadzayo and Khajehzadeh (2016) strengthen this opinion of Khodakarami and Chan
(2014). They mention that customer satisfaction plays a very important role not only in business
generation but also in building their brand image. The business organisations today in order to
attract more consumers and strengthen their brand image align their organisational cultures with
the requirements of the latter.
Organisation culture:
Drummond et al. (2017) refer to unique attributes and employee behaviour which are
particular to organisations. Organisational culture represents values, beliefs, practices and
principles which members or employees of an organisation share. The business organisations
develop their own individual culture due to various external and internal factors. Carlos Pinho,
Paula Rodrigues and Dibb(2014) further point out that the cultures of different organisations are
outcome of external market factors like political situation, the culture of the country of domicile

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of the company and economic factors. For example, organisational culture of a British
multinational company would find expressions related to British culture while a multinational
company based in Beijing would incorporate attributes typical to the Chinese culture. Zhu (2015)
mentions that technology also has important impact on the organisational cultures of the business
organisations. The business organisations work towards integrating innovation in their working
methods right from production to talent acquisition. Deresky (2017) throws light on a very
important business needs all organisations today are experiencing which are more applicable for
multinational companies. The multinational companies today integrate their international
business organisational culture with the culture of the host countries. For example, they celebrate
the festivals of their host countries. Luthans and Doh (2018) point out that this aspect is of great
importance for several reasons. Crane, Kawashima and Kawasaki (2016) in this respect point out
that customers today prefer to purchase products from business organisations which relate to
their culture. These preferences of customers have made business organisations adapt their
organisational culture with the culture of the host countries. Thus, business organisations today
design customer centric organisational culture which enables them to market their products more
profitably.
Customer centric organisational culture and revenue generation model of business
organisations:
Avilova, Gulei and Shavyrina(2015) point out a very important aspect which has
emerged as an important force in the corporate world. The revenue generation model of the
business organisation is aligned with the CRM technology model to boost revenue generation.

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Marketing of
products
Generating of
revenue
Generation of customer feedback,
references from customers
Information captured using
CRM technology
Company uses information to generate
business

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Figure 1. Figure showing CRM technology use in revenue model
(Srinivasan and Saravanan 2015)
They mention that business organisations today integrate their international
organisational culture with the organisational culture with the local market in order to take
advantage of socio-economic developments in these markets. As already Crane, Kawashima and
Kawasaki (2016) point out, customers today prefer purchasing goods and services from business
organisations which relate to their culture. It has also been observed that failure to relate to the
local culture or sentiments of the consumers have resulted in negative publicity and considerable
damage to the goodwill of the concerned multinational companies. This fall in goodwill though
apparently qualitative but one can point out that goodwill today that multinational companies
consider their goodwill as an important asset. Goodwill appears in the balance sheet of
companies (Figure 1). Thus one can point out that goodwill is an asset and also represents the
degree to which customers are loyal to products of companies. The explanation clearly shows
that relatedness of consumers with brands directly affect their revenue generation.
This factor has made business organisations modify their cultures to relate to the
customer preferences. Integration of international organisational with the local culture enable
business organisations to attract more customers. The business organisations as a result are able
to market their products more effectively and widely in the host countries’ markets.

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Figure 2 . Balance sheet of PepsiCo showing goodwill
(Source: pepsico.com 2018)
This generates huge revenue and multinational business organisations are able to make
each of their markets financially sustainable. Kotler (2015) points out that aggressive marketing
of products does not only enable multinational business organisations generate immense profit
by relating to the local cultural conditions, it also enables them to compete with the local
companies. The business companies which are able to generate huge revenue are also able to
give their investors higher returns on their investments. Thus, one can infer from this discussion

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that relating to the local conditions enable companies to generate both high revenue and capital.
Vargo and Lusch (2016) mention that this adapting of organisational culture with customer
requirements hold more substance in case of service providing companies. The degree of
customer satisfaction of service providing companies are dependent on their ability to serve the
customers. The service providing companies adapt their organisational culture to the need of the
consumers. The companies in order to maximise customer’s satisfaction incorporate the
preferences and expectations of the customers in their organisational culture. For example, the
layout of their service outlets are made in order to maximise the satisfaction of customers. There
are arrangements for refreshments of customers and staff attend waiting customers to reduce
their waiting time (Rapp, Trainor and Agnihotri 2010). This creates value to the customers which
encourage them to promote the services of the companies through word of mouth. Thus aligning
organisational culture with requirements and expectations of customers enable organisations to
market their products. Chathoth et al. (2014) mention that this enables business organisations
gain deeper penetration in the market and generate more revenue. Thus, one can infer from the
discussion that aligning business organisations with customer needs boosts the marketability of
products to business organisations and increases their profit generation.
Customer relation management and marketability of products:
Eichorn (2018) mention that customer relationship management plays a very significant
role in marketing products of business organisations. The business organisations today acquire,
manage and use customer information stringently. They store information their staff members
gather from customer interactions using software called customer relationship management
software. They obtain information like expectations of the customers from the company, their
staff members and from their goods and services. Navimipour and Soltani (2016) mention that

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companies today use this information they gain from customers in forming strategies about
business operations and product manufacturing. The business organisations in order to align their
operations to respond promptly to the needs of the customers have dismantled their tall structures
to give ways to flat structures. Yinan, Tang and Zhang (2014) mention that flat organisational
structure enable business organisational to respond faster to the complaints of customers which is
also reflected in their organisational culture. The managers consider customer grievances a
serious performance issues and deal with them extremely strategically. They hold meetings at
different levels right from the apex level to lower level to solve complaints lodged by customers.
The apex managers conduct investigation to gain knowledge about the extent of responsibility of
the company staff towards causing the problem (Chang, Park and Chaiy 2010). They take
appropriate steps to ensure that such things are not repeated in the future. Thus, business
organisations today align their organisational culture with the customer expectations which
enables them to ensure higher level of customer satisfaction (Chathoth et al.2014).
CRM
Customer
data
Helps in
marketing
of products
Generates
revenue
Gaining
more
customer
data

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Figure 3. Model showing CRM, marketability and revenue generation
(Source: Yinan, Tang and Zhang 2014)
Research Methodology
Overview:
Research Methodology comprises of different types of methodological tools that are used
by the researchers while conducting the research. The following chapter will provide a
systematic and scientific approach to describing the exploring of the research topic using a
number of different appropriate methods. Apart from that the following chapter will also have
the aim to predict a particular kind of research phenomenon by using a number of different types
of the tools that are used to derive the methods of the following research. In the following
chapter the formulator of the research will be providing the different methods as well as the
reasons behind choosing the methods.
Research Outline
Method HeadChosen methodology
Research DesignDescriptive
Research ApproachDeductive
Sampling TechniqueSystematic sampling technique
Sample Size60 customers
Data Collection processOpen-ended and close-ended questions
Data Analysis processSecondary Data Analysis

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Research Design
The following research will use the descriptive research design to conduct the following
research. The descriptive research design will be used as because the following design will
provide the opportunity to clarify the formulated hypothesis of the research and the research
topic. The use of the particular design method of the following research will help the formulator
of the research to develop a deep understanding of the cause and the effect of the research
rationale and will also help to predict the different future occurrences of the cause and the effect
of the research rationale.
Research Approach
The formulator of the research based on the Customer Relationship Management will be
using the deductive research approach to formulate the following research. The following
research approach goes in a proper way along with the descriptive research design and also
allows the researcher to test the formulated hypothesis of the following research. The researcher
will also be able to gather proper data and information related to the following research and can
take the help of the different types of the research topics and the concepts and theories of the
research.
Sampling Technique and Sampling Size
In order to conduct a survey and an interview the formulator of the research will have to
select an appropriate method of Sampling Technique. The following research on Customer
Relationship Management will be using the systematic probability sampling technique to
complete the following project. The following technique will ensure the avoidance of biasness in
the research. The scope of biasness can occur as the research responses will be collected from a

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large number of populations. The data will be collected from a population size of around 60
persons who are the customers.
Data Collection Technique
Two of the most widely collected data techniques are primary data collection technique
and secondary data collection technique. In the case of the current research the formulator of the
research will be using the secondary data collection technique to gather an idea about the result
of the following research on the CRM activities in an organization. The use of the secondary data
collection research will involve the collection of data from the likes of the relevant books,
journals, articles, other earlier sources and many more as such. The use of the secondary data
collection techniques will help the formulator of the research to use the different theories and
models as related to the technique of the research.
Data Analysis Technique
The secondary data will be analyzed by the researcher by following a series of different
steps. This includes the determination of the research question, location of the information,
evaluation of the relevance of the data, assessing the credibility of the data and last but not the
least a statistical analysis of the data that will be receive from the different secondary sources.
Relevance and Credibility
The relevance of the data is one of the major needs for the completion of the research.
The research will be said to be successful when the most credible and reliable sources of data
will be considered for use in the research. The data that will be collected must be scrutinized and
verified by the researcher to guarantee its validity in the research. The research will be able to
meet the objectives once the data used is valid in nature.

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Ethical Considerations
Ethics is one of the most important elements that need to be given the topmost priority
during the conduction of a research. The first and foremost duty of the researcher will be to
ensure the safety and the security of the research participants and also ensure the privacy and
confidentiality of the responses and their identities. Apart from that the researcher must not
pressurize the participants to provide a biased response and must publish the actual results. The
researcher must use honest and integrated ways to conduct a proper research. An honest and
integrated approach will help the research to ensure success.
Timeline
Task Name Duration Start Finish
Project Research
Proposal
102 days Sun
7/1/18
Fri
11/16/18
Selection of the
topic
1 day Sun 7/1/18 Sun 7/1/18
Approval of the
topic
6 days Mon
7/2/18
Sun 7/8/18
Collection of the
primary information
15 days Mon
7/9/18
Fri
7/27/18
Analysis of the
primary information
30 days Mon
7/30/18
Fri 9/7/18
Submission of the
draft
1 day Fri 9/7/18 Fri 9/7/18
Approval of the
draft
1 day Mon
9/10/18
Mon
9/10/18
Collection of the
secondary
information
15 days Tue
9/11/18
Mon
10/1/18
Analysis of the
secondary
information
30 days Tue
10/2/18
Mon
11/12/18
Submission of the
final file
4 days Tue
11/13/18
Fri
11/16/18
Table No 1: Time Schedule

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(Source: Author)
Figure 2: Gantt chart
(Source: Author)
Conclusion:
One can conclude from the discussion that customer relationship management enable
business organisations to market their products and align their organisational culture accordingly
which ultimately render them immense revenue and financial strength. This also renders them
competitive advanatge in the market. It is this CRM which enables them to mamnage and market

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their products before an immnse customer base which also awards them the high market position
these companeis hold. One can also recommend that even middle sized organisations should also
adopt the system of CRM to increase their customer base and revenue generation.

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Avilova, Z.N., Gulei, I.A. and Shavyrina, I.V., 2015. Formation of the customer-centric
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Deresky, H., 2017. International management: Managing across borders and cultures. Pearson
Education India.

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Drummond, S., Thrall, P., Porter, J., Davidson, S., Boxsell, K. and Lynch, S., 2017. From Page
to Action: Applying a workshop method to understand organisational culture.
Eichorn, F.L., 2018. Internal customer relationship management (IntCRM) a framework for
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