Analysis of Customer Relationship Management (CRM) Systems

This report provides a comprehensive analysis of Customer Relationship Management (CRM) systems, exploring their conceptual framework, benefits, and challenges. It examines the role of CRM in enhancing customer relationships and improving business performance, focusing on the implementation across various business sizes, including large, medium, and small enterprises. The report highlights the different types of CRM, such as operational, analytical, and collaborative CRM, and discusses the associated costs, including direct and indirect costs, along with the value of long-term customer relationships. Furthermore, it addresses the causes of CRM failures, current trends, and concludes with the significance of CRM as a business strategy for increasing profitability and customer loyalty. The report also includes references to relevant academic literature.

Customer
Relationship
Management Systems
Name of the Student:
Name of the University:
Author Note:

Introduction
 CRM system helps an organisation to keep the
detailed and updated information of the
customers.
 The study would present the conceptual
analysis of the CRM system, which is one of
the most essential components for managing
the effective relationships with the customers.
 Furthermore, the study would also discuss the
benefits of the client business types derived
from the implementation of the CRM process

Customer Relationship
Management System (CRM)
 CRM system helps in assembling the customer
data across different types of channels.
 The CRM process connects the customers with the
company via different mediums, such as direct
mail, telephone, website of the company, live
chats, social media, and marketing tools.
 CRM systems provides the customer-facing staff
detailed information to gain insights about their
concerns and preferences

Benefits and Challenges
of CRM
 CRM tools the profitability of the company by enabling
business innovations
 The improvement of the customer relations through CRM
process develop the customer loyalty that maintains the
business sustainability
 The cross-organisational participation is the greatest
challenge of CRM
 CRM is not technology-driven. Hence, this technology
stigma can sometimes become much challenging for
implementing CRM process

Types of CRM
 Operational CRM: Helps in streamlines the
business process
 Analytical CRM: Deals with the marketing,
management functions, and sales
 Collaborative CRM: Enables sharing the
customers’ information with the organisation

Cost Benefit Analysis
 Direct Cost: Training costs, Implementation,
Selection costs, Cost of events and data management
 Indirect Cost: Loss of business (dependency),
Cost of extra labor employed, Cost of materials for
promotion and relationship management like letters,
flyers
 Costs of not implementing CRM (Lifetime Customer
value): Loss of revenue, Loss of long-term prosperity,
increasing operational and promotional costs.

Type of Client Businesses Benefitted
from the CRM Process (Size)
 Large enterprises: Improves the informational
organisation of the larger number of customers, enhances
the communication with the foreign customers, develops
the cultural diversity, Automates the everyday tasks,
provides greater efficiency for multiple times.
 Medium-size enterprises: Helps in acquiring new
customers, selling more to the new customers, increasing
the sales revenues,.
 Small enterprises: Provides more sales opportunities,
improves social media marketing process, determines
individual needs.

Causes of Failures in CRM and
Current Trends
 Lack of Vision
 Lack of Commitments
 Conceptualizing CRM as a Technological Solution
 Poor Planning
 Lack of User Adoption
 Lack of Training
 Lack of Support
 Wrong Technology Vendor
 Lack of Measuring Objectives

Conclusion
 CRM process is mainly conceptualized as the company-
wide business strategy that increases profitability and
reduces costs by solidifying the loyalty of the customers.
 The effective CRM helps the business companies to develop
customer loyalty and target the top clients in the market.
 The cross-organisation participations create significant
barriers in implementing CRM process.
 CRM process would benefit large firms, medium-sized
firms, and small firms as well.

References
Haislip, J. Z., & Richardson, V. J. (2017). The effect
of Customer Relationship Management systems on
firm performance. International Journal of
Accounting Information Systems, 27, 16-29.
Hasanian, G., Chong, C. W., & Gan, G. C. (2015).
Application of knowledge management factors on
customer relationship management
process. Library Review, 64(8/9), 583-596.