CRM Evolution, Implementation, and Benefits: A Comprehensive Report

This report provides a comprehensive overview of Customer Relationship Management (CRM), tracing its evolution from the relationship between producers and consumers of agricultural products to current advancements in telecommunication technologies. It discusses key concepts such as Total Quality Management, CRM frameworks (including relational information processing and customer-centric management), and the importance of customer relationship orientation. The report delves into CRM implementation strategies, focusing on key customers, organizing around CRM, managing knowledge, and incorporating CRM technology. It also highlights the benefits of CRM, such as increased customer loyalty, more effective marketing, improved customer service, and cost reduction, while also acknowledging potential pitfalls. The report emphasizes the importance of CRM in strengthening customer relationships, driving sales growth, and achieving long-term business objectives.

Running head: ENTERPRISE RESOURCE PLANNING
Enterprise Resource Planning
Name of student
Name of University
Author note

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Table of Contents
Introduction......................................................................................................................................3
Evolution of CRM...........................................................................................................................3
Relationship between producers of agricultural products and consumers...................................3
Mass production in industrial Era................................................................................................3
Current advancement in telecommunication technologies..........................................................4
Total Quality Management..........................................................................................................4
CRM framework..............................................................................................................................5
Relational information Process....................................................................................................5
Customer relationship orientation................................................................................................5
Customer centric Management system........................................................................................6
Outcome of Relational Information process and CRM technology use......................................6
CRM implementation......................................................................................................................7
Focusing on key customers..........................................................................................................7
Organizing around CRM..............................................................................................................7
Managing Knowledge..................................................................................................................7
Incorporating CRM technology...................................................................................................8
CRM benefits, considerations and pitfalls.......................................................................................8
Increased customer loyalty...........................................................................................................8
More effective Marketing............................................................................................................8
Improved customer service and support......................................................................................8
Great efficiency and cost reduction.............................................................................................9
Mismatch between company and vendor CRM...........................................................................9
Poor understanding of company’s business process....................................................................9
References......................................................................................................................................10

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Introduction
Customer relationship management or CRM is an effective way or approach followed by
the organizations to implement strategies and establish good connections with the customers. It
not only strengthens the customer services’ relationship management, but also helps in attracting
and retaining new and existing staffs, furthermore improve the growth in sales and profit level
too. The topic will discuss how the CRM has evolved over time and furthermore keep constant
interaction with the present and potential customers (Leon, 2014). The main goal or objective of
the CRM is to manage customer retention and drive sales growth by using data and information
about the customers.
Evolution of CRM
Relationship between producers of agricultural products and consumers
By implementing the customer relationship management or CRM system, the business
organization could learn about the target audiences and understand their needs and preferences to
deliver products and services accordingly. The CRM approaches refer to the various practices
and strategies that are undertaken to keep interactions with the customers and acquire data and
information throughout the entire customer life cycle. This can help to improve the customers’
services efficiency as well as attract new customers by influencing them to make purchases
consistently. The customers were able to know about the sustainable approaches followed by the
producers of the agricultural products, which made them purchase those on a regular basis. This
would enhance the sales, assist in catering to the needs of the customers and finally generate
more revenue in business (Chiu et al., 2014). By implementing CRM, the agricultural enterprises
in Sri Lanka were able to manage customer retention, established good brand image and
reputation, provided value to them as well as increase the level of trust and loyalty.
Mass production in industrial Era
CRM earlier was a guesswork done to predict the customers’ value and check whether
the delivered products and services can fulfill the quality standards or not. With time, the

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digitalization of CRM was beneficial for gathering details about the customers to understand
their needs and furthermore facilitate the growth and development in business. This has helped in
engaging customers in a better way for the companies. There were further improvements in the
80s when email communications had been integrated with the marketing strategies to ensure
maintenance of information of clients and at the same time, fulfill their needs and requirements
with ease and effectiveness (Tsai et al., 2012). The mass production in the industrial era was
informed to the consumers, which further helped in maintaining good relationships between the
producers and the customers.
Current advancement in telecommunication technologies
The CRM has become more effective nowadays with much more effective sharing and
exchange of data and information with the customers and making them now about the kinds of
products and services delivered to them by the company. The loyalty programs are established
and other offers as well to manage signing up for the avail of services and even referring the
friends and families of the customers. This would not only increase the customer base, but would
also enable the business to grow and stay ahead of the competitors within the business
environment (Hoch & Dulebohn, 2013). Finally, with other changes and improvements, the
investors or shareholders were able to use technologies and analyzed the business situations to
make sure whether their investments could bring positive outcomes or not. The advancement in
telecommunication technologies was beneficial for managing a website and allowed the
customers to book tickets online, check for fares, discounts and offers available for the services
available. The airlines enterprises could get millions of calls every year, most of which were
information based related to what the customers wanted to know about the check in and other
information about the services. This improved the effectiveness of the customers’ services and
established a sense of trust and loyalty among them, furthermore influenced their buying
behaviors (Khodakarami & Chan, 2014).
Total Quality Management
By implementing CRM system, the customers’ services improved and the needs of the
clients were fulfilled by maintaining good relationships with them through trust and loyalty. The

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Total Quality Management or TQM strengthened the competitive positions of the organization
and reduced the costs of operations. Because of the fulfillment of customers’ needs and
requirements, there has been better customer loyalty and retention, which results in generating
more revenue in business. This showed that the quality standards were maintained by the
business organizations through the implementation of TQM (Wang & Feng, 2012).
CRM framework
Relational information Process
Relational Information process plays a vital role in customer relationship management by
strengthening the competitive position of the organization and enhancing the brand image and
reputation too. The organizations use CRM to establish long-term relationships with the
customers and to do so, it is important to communicate with them frequently as well as increase
customer retention, satisfaction, generate more revenue and lower the costs of business
operations and processes. Previously, the use of information technology was not much effective
for creating a positive impact on business through customer relationship management and so the
relational information process designing was focused on. The relational information processing
approach is useful for managing the customer information and at the same time, conduct
researches on the market related information (Nguyen & Mutum, 2012). The feedbacks of the
managers were considered along with gathering of data from other samples, which created a
good link between the relational information process and customer relationship performance.
Customer relationship orientation
Customer relationship orientation refers to the management of connection between the
customer relationship management and market orientation. The CRO increased the performance
level of the organization by allowing it to adapt to changes and go with the flow for fulfilling the
needs of the customers largely. The organizations must focus on becoming customer oriented to
change its targeted customers from time to time and innovate the products consistently to keep
pace with the changing market conditions. Market research could be conducted for managing
orientation of the customer relationships and make the CRM successful by gaining higher profit

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and satisfaction from the customers’ end (Choudhury & Harrigan, 2014). Customer relationship
orientation could make the company gain a clear understanding of the targeted market consisting
of the customers and develop different communication patterns to identify their needs and
requirements. The companies would be able to drive the sales and achieve the long-term
financial goals and objectives with ease.
Customer centric Management system
CRM is a customer centric system that focused on creating a positive mindset and
experience among the customers. The companies used this system to make the customers at the
centre of business philosophy, ideas and business processes. A positive relationship was
established by managing good contacts with them and the needs and preferences of theirs were
understood easily too. This created a good mindset among them and made them believe that they
were being valued by the organization. A company could communicate with its customers
through emails, live chat conversations and video conferences to understand their needs and
preferences and provide them solutions to any queries. This would improve their level of
satisfaction and make them inclined towards the company (Koegler et al., 2013).
Outcome of Relational Information process and CRM technology use
The relational information process brought several benefits like better flow and exchange
of information along with ease of using and accessibility of data and information. It played a
major role in leveraging the CRM technologies and improved the relationships with the
customers, furthermore generated more sales revenue. Not only information from the customers
were considered but also the feedbacks of the managers were taken into consideration for
enabling innovation procedures and drive the sales of the company through better customer
satisfaction. The relational information process efficiency is improved furthermore by using the
CRM through sharing and exchange of information and data (Bahrami, Ghorbani & Arabzad,
2012). This created good relationships and fostered sharing of information between the business
and its customers. It also strengthened the customer relationships and shaped how the customer
information could be managed.

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CRM implementation
Focusing on key customers
The implementation of CRM helped in focusing the targeted audiences and key
customers through proper communication approaches. Customers’ data were used for
management decision making, which further helped in approaching the market and ensured
successful product differentiation, maintenance of quality standards and innovation too. The
company made sure to surpass the expectations of the key customers by providing them the best
quality customers’ services along with products according to their needs and requirements. This
resulted in customer satisfaction and established trust and loyalty among them too, which
influenced their buying behaviors (Saarijärvi, Karjaluoto & Kuusela, 2013).
Organizing around CRM
To organize around CRM, it would be important to communicate with the customers
through email newsletters, holiday greeting card or even promotional offers for the new products
available. The staffs should be trained to meet the requirements of the customers and ensure that
they are treated as important stakeholders. The incentives provided to the customers could make
them return while the product awareness establishment could also influence them to make
purchases regularly. It is also important to remain reliable and flexible to adapt to changes, solve
customers’ complaints and compensate them for the inconvenience caused. The names of the
regular key customers should be recorded to communicate with them often and let them know
about the new arrivals (Wang et al., 2012).
Managing Knowledge
Management of knowledge and skills is possible by providing the employees of the
organization with training sessions so that they can communicate with the customers and provide
solutions to any queries. The internal guidelines are to be set for ensuring that the workforce
follow those for maintaining values and ethics and ensure better customer satisfaction through
reliable customers’ services.

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Incorporating CRM technology
The implementation of CRM strategy incorporates the management of licensing,
management of vendor contracts and intellectual rights along with lowering of costs. By using
this strategy, it would be easy for retaining the ownership rights and manage the software license
requirements properly during ongoing payments. By incorporating CRM technology, the
customers’ services would improve and it could result in higher levels of satisfaction among the
customers, furthermore drive the sales revenue and allow the company to attain competitive
advantage in business (Bon & Mustafa, 2013).
CRM benefits, considerations and pitfalls
Increased customer loyalty
One of the major benefits of using CRM is the increased customer loyalty, which has
arisen because of the constant interaction between the business and its customers. Due to this, the
queries of the customers were resolved and they were made aware of the new products and
services available in the market. By analyzing the customer related information, it has become
convenient to identify the key customers and the information are stored to ensure that their needs
and requirements are fulfilled. With the fulfillment of their needs and preferences, they would be
able to gain trust on the business and make consistent purchases.
More effective Marketing
Marketing means making the products and services available for the customers properluy
and it has been possible by conducting market researches through information analysis, The
analysis of customer centric data and information has helped in designing proper customer
centric relationships, which enhanced the efficiency of decision making process too. The
Relational Information process and CRM usage helped in communicating information to the
customers and made them know about the products available in the market (Trainor et al., 2014).
Thus, the marketing techniques have been facilitated as well through the CRM implementation.
Improved customer service and support

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Effective sharing and exchange of information is an important aspect of customer
services and support for every company. By communicating information and messages to the
customers, it has become easy for the companies to improve the customers’ services and this
even developed trust and loyalty among the customers. The customers were made aware of the
new products and services made available by the company, which further helped in supporting
the fulfillment of needs of the customers.
Great efficiency and cost reduction
It has become convenient to interact with the customers and messages are transferred to
them without much effort. The messages and information are shared with them through emails,
chat conversations and this reduced the cost of business operations largely (Kim et al., 2012).
Mismatch between company and vendor CRM
One of the drawbacks of CRM is the miscommunication between the business and its
CRM vendors. While implementing CRM, issues might arise related to the hosting, page linking,
setting up of databases and configurations. When the sales team members and skilled staffs are
not considered while making decisions, it becomes difficult to create proper link the business and
vendor CRM and thus the CRM implementation fails.
Poor understanding of company’s business process
The CRM vendor often is casual with the support and services, because of which the
software implementation remains unsuccessful, which further deteriorates the successful
management of business. This has left many sales team members irritated and frustrated with the
CRM system and they were unable to understand the business processes properly (Khodakarami
& Chan, 2014).
Conclusion
The topic discussed about the various aspects of CRM along with advancements in
telecommunication technologies and philosophies for total quality management. The CRM
framework facilitated the relational information process, managed customer relationship

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orientation, and derived outcomes best suited for managing close interactions with the customers.
The CRM system managed compilation of data through various communication channels like by
using a website, telephonic conversations, email, live chat and video conference. The use of
CRM in various sectors had brought various benefits such as better customer loyalty, increased
sales revenue and competitive edge over competitors. Few of the drawbacks that were
experiences had been lack of understanding of the business processes and inappropriate match
between the company and vendor CRM.

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References
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