Investigating Digital Technology's Impact on CRM Systems

This report provides a detailed analysis of the impact of digital technology on Customer Relationship Management (CRM) systems, using Hotel Crowne Plaza as a case study. It explores various CRM types (Operational, Analytical, and Collaborative), features, and the importance of digital tools in fostering customer relationships. The report highlights the role of digital technology in interacting with customers, understanding their needs, and leveraging social media platforms for marketing. It also covers the influence of digital content, speed, and consistency on business outcomes, including faster information dissemination, sales boosts, and cost-effective customer reach. The conclusion emphasizes the significance of maintaining strong customer relationships in the hospitality sector for attracting and retaining customers.

Investigate the impacts of
digital technology in customer
relationship management
(CRM) Systems

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Impact of digital technology on Customer Relationship Management (CRM).....................1
Types of customer relationship management system: .................................................1
Features of customer relationship management system:...............................................2
Reasons why digital technology is important in developing customer relationships...2
Use of different social media platforms in awaring customers about products and services:3
How digital content, speed and consistency impact on business:.................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Customer Relationship Management refers to an approach of managing firm's interaction
with its current and potential clients (Khodakarami and Chan, 2014). It uses analysis of data
about customer's history with firm to enhance their business relationship with clients, particularly
focusing on their needs which ultimately drives sales growth. In the present assignment, chosen
organisation is Hotel Crowne Plaza which is headquartered in United Kingdom and offers
catering services to customers. This report covers impact of digital technology on customer
relationship management.
TASK
Impact of digital technology on Customer Relationship Management (CRM)
Customer Relationship Management is defined as the business practice of encouraging
and maintaining relationship with client through several practices, platforms and technologies.
Digital technology highly impacts on CRM system of an organisation as it helps in interacting
with large number of customers and knowing their needs and demands as well.
Types of customer relationship management system: Operational CRM: It is defined as the services that enables firm to take care of its
customers. This business aspect gives support to different processes involving marketing,
sales and services. For instance: call centres, data aggregation system etc. Application of
operational CRM tool can assists manager of Hotel Crowne Plaza in resolving various
issues like high customer turnover, increase in service costs etc. High technology
expertise can provide them access to all information related to customers and also
provides firm a clear view of their needs and requirements (Malthouse and et. al., 2013). Analytical CRM: It denotes the organized electronic evaluation of collected customer
data. In this, data related to customer interaction is collected by firm with the objective of
increasing satisfaction of consumers and their retention rate. It is a behind the scenes
process in which client is not aware that their interactions and actions with firm are being
analysed and captured. This system helps manager of Hotel Crowne Plaza in predicting
customer trends and offering products that attracts the customers more.
 Collaborative CRM: In this system, different departments of firm like technical support,
marketing and sales, share any information related to customers that they receive from
interaction with them. For instance: Feedbacks of clients collected from technical support
1

session can provide information to marketing department about goods and services that
might like by customers more. Application of this approach assists Hotel Crowne Plaza in
in improving customer service quality which results in increasing their satisfaction level
and loyalty towards firm's products and services (Chen and Tsou, 2012).
Features of customer relationship management system: Customer needs: A firm can never assume the actual needs of customers. Thus, it is very
important to interact with them on regular basis and know about their likes and dislikes.
Customer relationship management system helps hotel Crowne Plaza in identifying needs
of customers and satisfying them effectively. Determination of customer's needs
provides an advantage to company to offer goods and services accordingly which in turn
results in higher customer satisfaction level. Customer Satisfaction: It is a measure of how responses and needs are collaborated and
delivered to surpass expectations of customers. Maintaining good relationship with
customers helps Hotel Crowne Plaza in satisfying them more. It will provides them an
advantage of improving image in minds of customers which results in high customer
loyalty. Customer loyalty: It refers to the tendency of client to keep in business with specific
supplier and buy goods regularly. CRM is crucial aspect or strategy for Hotel Crowne
Plaza as it helps them in satisfying customers more and maintaining their loyalty. This
providing an advantage of improving image in society.
 Customer retention: It is the strategic process in which firm retain its existing customers
for longer term. Customer relationship management system helps Hotel Crowne Plaza in
retaining more number of customers by offering them products and services that they
actually need. High retention rate results in more customer satisfaction and high loyalty
which improves image of company.
Reasons why digital technology is important in developing customer relationships:
 By digital technology, firm can easily interact with it target audience anywhere in very
less time (Laudon and Laudon, 2015).
 It enables owners to develop a clear and detailed picture of buying habits, needs and
preferences of customers.
2

 Digital marketing helps owners in maintaining good relationship with customers by
taking their feedbacks through various sites.
 It enables owners to target new prospect as well as increase their revenue by satisfying
more customers.
Use of different social media platforms in awaring customers about products and services:
 Email marketing: This marketing platform helps hospitality sector in awaring customers
about their products and services by sending them electronic mails on their mobile
phones and systems. It is the far easier way to market a business among existing
customers and assists in seeking out new ones.
(Source: Email Marketing, 2018) Social media marketing: This marketing helps hospitality firm in promoting its products
and services in more effective manner (Marinagi, Trivellas and Sakas, 2014). Today,
people use social media websites more so, it becomes easy for firm to reach n wider
audience. Hotel Crowne Plaza use social media to communicate customers about their
room rates and various discount offers. For example: Facebook, Twitter. Display advertising: It is an advertising way on applications, social media or websites by
using banners and other advertisement formats made of images, texts and videos. Its main
purpose in hospitality sector is to deliver brand messages and general advertisements to
site visitors.
3
Illustration 1: Email Marketing

 Pay per click marketing: It is an internet marketing model in which organisation or
advertiser pay a particular amount each time when their ads is clicked. It is the way of
buying visits to site instead of attempting to earn. This assists Hotel Crowne Plaza in
deriving the most eligible traffic to website.
How digital content, speed and consistency impact on business:
Speed, consistency and digital content is all about changing the manner in which Hotel
Crowne Plaza interact with customers and provide them consistent experience when they need it. Faster information: Promoting business via social networking, internet ads and email,
Hotel Crowne Plaza enables to provide information about its goods and services more
faster (Kleis and et. al., 2012). Boost sales: Social media is the best way of reaching large number of customers and
attaining high sales.
 More affordable way of reaching large number of customers: Online advertising is the
most effective and less expensive way to interact with customers.
CONCLUSION
As per the above mentioned report, it has been concluded that in hospitality sector, it is
very essential to maintain good relationship with customers as it helps them in attracting large
number of customers and retain them for longer term. Various types of customer relationship
management system assists firm in knowing actual needs of customers and serve them
accordingly.
4

REFERENCES
Books and Journals
Khodakarami, F. and Chan, Y. E., 2014. Exploring the role of customer relationship management
(CRM) systems in customer knowledge creation. Information & Management. 51(1).
pp.27-42.
Malthouse, E. C. and et. al., 2013. Managing customer relationships in the social media era:
Introducing the social CRM house. Journal of Interactive Marketing. 27(4). pp.270-
280.
Chen, J. S. and Tsou, H. T., 2012. Performance effects of IT capability, service process
innovation, and the mediating role of customer service. Journal of Engineering and
Technology Management. 29(1). pp.71-94.
Laudon, K. C. and Laudon, J. P., 2015. Management information systems (Vol. 8). Prentice Hall.
Marinagi, C., Trivellas, P. and Sakas, D. P., 2014. The impact of information technology on the
development of supply chain competitive advantage. Procedia-Social and Behavioral
Sciences. 147. pp.586-591.
Kleis, L., Chwelos, P., Ramirez, R. V. and Cockburn, I., 2012. Information technology and
intangible output: The impact of IT investment on innovation productivity. Information
Systems Research. 23(1). pp.42-59.
5