The Role of Decision Making in Successful CRM Implementation

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Business Intelligence for Decision Support
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Table of Contents
Essay: Decision making in customer relationship management......................................................4
References......................................................................................................................................10
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Abstract
Customer relationship management is a methodology of managing organization’s interaction
with potential and current customers. CRM enhances the relationship marketing to deploy and
maintain and terminate relationships with clients and customers in order to achieve maximum
profit. Decision-making is key element and fundament task in customer relationship management
that aims to enhance the customer relationships and satisfaction resulting in high profit for
company. All major aspects of decision making in customer relationship management are
discussed and analyzed in this work in form of essay. This work critically highlights the
importance of decision making in CRM and perks of CRM systems in maintaining customer
relationships. Customer relationship management is new option for companies by help of which
they can reach to customer loyalty and satisfaction and profit numbers can be improved.
Keywords: Customer Relationship Management (CRM), Decision-making, customer
satisfaction, CRM software
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Essay: Decision making in customer relationship management
The art of business companies are adopting has changed significantly from last ten years, varying
from product-based industry to market-based industry where customers are major centre of
attraction. This has boosted competition and struggle between companies on market, where every
organization/company has to work more potentially with updated competitive strategy in order to
stay in business. Companies can’t rely on old and outdated competitive advantages any more.
Besides, advent of customer relationship management is major driver of this change which is
underpinned by communication and information technologies. It is no secret that companies with
good understanding and knowledge of their company are well positioned to inspire loyalty and
meet customer’s needs. The major objective of companies is to determine new prospects, retain
valuable business and grow profit as result. There is need of implementation of trustworthy and
good system for better interactions with customers. Customer Relationship Management (CRM)
system is one of such tool that take care of customer interactions. Through Customer
Relationship Management it is easy for management to understand trends of customers. Decision
making is a vital element of customer relationship management for maintaining level of
competitiveness and engaging customers. Enriched decision-making strategies in CRM can
produce optimized and fruitful results.
Scope of Customer Relationship Management
Companies are embracing CRM as business strategy for differentiating services for customers
and fulfilling the needs of customers for reaching customer satisfaction. According to Anshari et
al. (2018), Customer Relationship Management is viewed as managerial efforts to handle
interactions with customers by combining technologies and business processes that able to
understand company’s customers. Companies are becoming aware of benefits offered by CRM
that includes: 1) Higher customer profitability, 2) increased loyalty and customer retention, 3)
value creation for customers, 4) high-quality services and lower costs, 5) customization of
services and products. Fundamentally, CRM is enhanced tool in branding and marketing
practice. One perspective of customer relationship management is that database of efforts that
emphasize on the promotional and marketing aspects. However, it cannot be concluded that
customer relationship management is database marketing. Customer knowledge and behaviour is
utilized in CRM to serve customers and provide better services. On the basis of customer
understanding, right value is included, created and exchanged with customers to reach good
heights of customer loyalty and satisfaction. Basically, customer relationship management is
based on ability of providing decision making and communication to facilitate high, consistent,
cost-effective and quality services to the stakeholders. CRM is interactive and participatory
relationship between customer and business. The major target is to obtain comprehensive view of
customer and consistently reacting and answering to their requirements with targeted activities at
touchpoint of every customer. In single view it can be said that CRM is a type of business
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strategy that is empowered by technological and managerial philosophy that apply database and
customer knowledge in delivering quality services and best value to customers according to their
needs.
Organizing decision-making process in CRM
CRM platform allows sales and marketing department to leverage data more accurately and
efficiently than ever before by providing sufficient knowledge about linked customers. CRM
provides implementation of meaningful communications that result in genuine and long-lasting
relationships (Yawised and O’Donohue, 2019). However, in order to deliver benefits, CRM
platform has to deeply reflect needs and types of business utilizing it. Organized decision-
making process is required to choose CRM software or vendor. There is need of assessments and
analysis of existing CRM systems if already CRM system is placed. The first tip of decision-
making in implementing CRM system begins from identifying the requirements and needs of
company. In this, department that needs the CRM platform and number user available there are
assessed. Another area to analyze is the possibility of integration of applications that are already
in place. Necessity of contextualized and careful analysis of on-premise and cloud data cannot be
ignored. For companies who are more concerned about the security of data or are willing to pay
extra upfront so that the greater total cost of ownership can be avoided, on-premise can be the
good option for them. On the other hand, startups with low budget can go with cloud data
because of that initial cost is lower. Also, if company is looking to evolve and change
functionalities, it would be much easier to make adjustments through cloud option, but in
contrary to that it provides less capacity for integration. Every business units does not require
similar level of mobile access, but sales, productivity and customer services are majorly affected
but the degree of mobile accessibility. Data in CRM system can be leveraged in most possible
manner by integrating it with different information sources. Connectivity requirement is decided
on the basis of nature of business. Selecting CRM solution from social media is vital part, this
will facilitate gathering of leveraging information as discussed by Dewnarain et al. (2019). CRM
integrated with social media platform can provide competitive edge to the company. Last but not
least the major step in organizing the decision-making process in to make sure that the
employees are ready for arrival of CRM system. Support of team members is necessary so that
choice can be understood. This can only be achieved by including the staff in decision-making
process from early stages to listening feedbacks. As business grows and brand gets mature, its
customer relationship management must follow suit, constant assessments of performance, staff
training and ongoing adjustments.
Making right CRM decisions for business
Significant gains in sales, marketing and service can be achieved by opting the right customer
relationship management for business needs. Best access to the CRM can lead your company in
terms of growth to very next level. The value of CRM is to facilitate cradle-to-grave
interpretation of clients and customers. Process within sales, marketing and services can be
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developed and retention and acquisition can be optimized by investigating the elements that
make high value to customers. Understanding and realizing these elements is complex decision
process that directly depends upon the inputs acquired from data points and multiple sources.
Unfortunately, these data and sources are rarely integrated and CRM are brought on board, the
level of challenges gets more difficult. The most crucial decision points about CRM evaluation
process are to identify the integration value with current data and legacy systems used in
business (Alananzeh et al. 2018). For large firms, challenge is to access this information by
means of new CRM. Integration risk are significantly reduces by decision of leveraging a
platform because each of the module is introduced to work with platform as unit. Integration cost
and risk are reduced but upfront price can be expensive. A decision of leveraging point solution
will consume custom development approach to integrate data and legacy system. CRM should
facilitate ‘cradle-to-grave’ methodology so the methods of sales, marketing and service can be
handled appropriately. Some CRM systems are module nature wise and charge for components
individually. In order to update processes, data fields and reports, out-of-the-box features needs
to be easily customizable so that business needs can be fulfilled. Ability of tracking and creating
campaigns by means of multiple channels should be included by marketing automation module.
Social monitoring and website analytics should have ability of integrating data sources across
internet. CRMS can combine new channels of communication so that buying decisions can be
enhanced. Sales process development modules are included in sales force automation module
through which repeatable profitable model can be tracked and optimized. Effective sales
operations can be enabled by communication templates. By means of service automation
modules, service transactions can be automated for serving greater profitability. Partner portals
and customer self-service agent productivity can be enhanced. CRM software needs to deployed
in two forms i.e. Hosted and On-premises. Depending upon the needs of business, each approach
of deployment can be cost-effective and beneficial. In recent years, rapid prototyping of
solutions, speed of markets and reduced upfront costs have assisted hosted market to grow
magnificently. CRM cost arrives in multiple form and deployment decisions impacts the cost of
CRM. O-premises deployments are sold with per-user licenses and server. In comparison to the
hosted model, initial upfront investments are greater, but in longer terms, cost can be depreciated
and lowered. Software as a Service (SaaS) influences costs to greater degree. SaaS allow
effective maintenance and management of software by application provider and on same time
difficult for customers to customize software. Greater cost flexibility can be facilitated to
provider and software can be managed easily.
Decision improvement through sales software
Al-Weshah et al. (2018) suggest that deployment of adequate customer relationship management
software is supreme task for any company and it can assist in progressing the company at
different levels. Implementation of sales software can enhance the decision-making process in
company. Relationship which company has with its clients and customers implies beneficial
differentiation with respect to enrichment of own processes and competitors. Both by
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strengthening existing relationships and generating new ones, CRM tools are evolving with
passage of time that is useful in optimizing management and sales processes. Acquiring relevant
information regarding the customers is not only helpful to benefit hard work of salesperson and
relationship with customers (exclusive offers, enhanced pre-visit planning and personalized
service), but also optimize business levels and processes. More specifically, fields where mobile
customer management is more effective, decision-making process needs to be enriched. By help
of management teams, sales software and sales agents, detailed and complete information about
consumers can be obtained. With this decisions can be improved in order to provide perfect offer
to customers with services they value. Sales software based on CRM includes the relevant
information about the potential and current value of customers that could be helpful in
developing personalized loyalty plans, each user’s profitability can be investigated and effective
strategies can be formed in boosting the number of customers. Integral profile of prospective
customer is created and information is centralized by help of sales software in single system
through which errors can be minimized and loss of sensitive data can be avoided. Decision-
making processes can be enhanced by means of sales software which allows benefit of analyzing
reports and sensitive information, through which purchasing trends can be detected and other
data interesting for company can be investigated. By means of sales and marketing campaigns,
chances of predicting the success can be allowed and investment and returns can be estimated. It
is customer relationship management programs, through which it is possible for companies to
predict the sales volume and quality of customer service can be measured and business
performance can be monitored. By means of sales software or can also be described geolocation
system in some case, customers can be identified easily and decisions regarding the optimal sales
route can be plotted effectively even before working of salesperson. Through this salesperson
can make better visiting plan and information can be used in increasing effective sale. Also,
CRM offers mobility tool, by which reports and decisions can be made anytime, anywhere
producing high-quality feedback. Through this, management teams and central offices can
analyze various variables, resources and time can be saved for facilitating decision-making.
Potentials of improved decisions in CRM
Effective decision-making procedure in CRM leads to the numerous potential benefits for the
company in delivering quality services to the customers. Alvarez-Milán et al. (2018), gave
insights about customer retention strategies can be developed in which several marketing tactics
are employed for enhancing the customer bonding and focus on one-to-one relationship can be
made by integrating database knowledge. Objective of fostering the customer loyalty simply
described as deeply held commitment of re-buying preferred services and product in future can
be achieved by effective CRM system. Integrated decision-making strategies can be used to
determine and develop network with individual clients and same can be strengthened for mutual
benefits. CRM with effective decision-making process can allow company to tailor services and
products on the basis of needs of individual customer. In most recent scenario, personalized
experience can be created through CRM through which customers will feel a sense of being
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cared which can be used in opening new opportunities of marketing and sales based on history
and preference of customers. Strong value-laden relationships with stakeholders and customers
have been created and enhanced by CRM process. Total market can be grown and better end-
user value can be achieved through ongoing collaborative business activities at reduced cost.
Improved knowledge and understanding about customers can be gained and same can be
employed in serving them and achieving heights of customer satisfaction. With creation of
effective relationships with clients and customers, future competence within company can be
developed too. By achieving the high customer retention rates, significant profitability levels can
be achieved. CRM can assist businesses in improving the customer relationships by fascinating
more profitable customers and deploying durable and stronger customer relationships. Through
CRM, inputs across services, sales and marketing can be measured and out in terms of value,
profit and customer revenue can be determined. Customer knowledge acquired from CRM can
be utilized in improving the future strategies and enhancing the performance by learning from
failures and successes.
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Conclusion
Customer relationship management is latest way of thinking inside an organization. It is a
concept that is significantly emerging worldwide and offers potential and innovative acts of
keeping satisfaction level of customers high. Decision making plays contributory role in
evolving customer relationship management, depending upon selection of CRM software,
implementation of CRM system and replacing the existing system. Views of authors on the
decision-making approach in CRM were discussed in essay section. It was realized that the key
feature of CRM concept is that it required to be spread throughout the company and involvement
of each and every member of company in decision making is essential. CRM is simply a way of
thinking, sustained by CRM software and both in combine form CRM solution. In above work,
process of organizing a decision-making procedure and improvement in decisions through sales
software were discussed. It can be concluded that, by significant implementing decision-making
and decision support strategies in customer relationship management, customer interaction can
be improved, productivity for company can be increased and level of customer satisfaction and
loyalty can be enhanced.
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References
Alananzeh, O.A., Jawabreh, O., Al Mahmoud, A. and Hamada, R. 2018, ‘The impact of
customer relationship management on tourist satisfaction: The case of Radisson Blue Resort in
Aqaba city’,Journal of Environmental Management & Tourism, 9(2 (26)), pp.227-240.
Alvarez-Milán, A., Felix, R., Rauschnabel, P.A. and Hinsch, C. 2018, ‘Strategic customer
engagement marketing: A decision making framework’, Journal of Business Research, 92,
pp.61-70.
Al-Weshah, G.A., Al-Manasrah, E. and Al-Qatawneh, M. 2018, ‘Customer relationship
management systems and organizational performance: Quantitative evidence from the Jordanian
telecommunication industry’, Journal of Marketing Communications, pp.1-21.
Anshari, M., Almunawar, M.N., Lim, S.A. and Al-Mudimigh, A. 2018, ‘Customer relationship
management and big data enabled: Personalization & customization of services’, Applied
Computing and Informatics.
Dewnarain, S., Ramkissoon, H. and Mavondo, F. 2019, ‘Social customer relationship
management: An integrated conceptual framework’, Journal of Hospitality Marketing &
Management, 28(2), pp.172-188.
Yawised, K. and O’Donohue, W. 2019, ‘Social Customer Relationship Management in Small
and Medium Enterprises: Overcoming Barriers to Success’, In Management Science (pp. 157-
181). Springer, Cham.
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