Page 12 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 1: Introduction to Customer Relationship Management

TQM = A process for managing quality; it must be a continuous way of life; a philosophy of Notes
perpetual improvement in everything we do.
Customer Relationship Management (in 1990): Customer Relationship Management (CRM) is
one of those magnificent concepts that swept the business world in the 1990’s with the promise
of forever changing the way businesses small and large interacted with their customer bases. In
the short term, however, it proved to be an unwieldy process that was better in theory than in
practice for a variety of reasons. First among these was that it was simply so difficult and
expensive to track and keep the high volume of records needed accurately and constantly update
them.

In the last several years, however, newer software systems and advanced tracking features have
vastly improved CRM capabilities and the real promise of CRM is becoming a reality. As the
price of newer, more customizable Internet solutions have hit the marketplace; competition has
driven the prices down so that even relatively small businesses are reaping the benefits of some
custom CRM programs.
In the beginning…
The 1980’s saw the emergence of database marketing, which was simply a catch phrase to define
the practice of setting up customer service groups to speak individually to all of a company’s
customers.
In the case of larger, key clients it was a valuable tool for keeping the lines of communication
open and tailoring service to the clients needs. In the case of smaller clients, however, it tended
to provide repetitive, survey-like information that cluttered databases and didn’t provide much
insight. As companies began tracking database information, they realized that the bare bones
were all that was needed in most cases: what they buy regularly, what they spend, what they do.

Advances in the 1990’s: In the 1990’s companies began to improve on Customer Relationship
Management by making it more of a two-way street. Instead of simply gathering data for their
own use, they began giving back to their customers not only in terms of the obvious goal of
improved customer service, but in incentives, gifts and other perks for customer loyalty.

Notes This was the beginning of the now familiar frequent flyer programs, bonus points
on credit cards and a host of other resources that are based on CRM tracking of customer
activity and spending patterns. CRM was now being used as a way to increase sales
passively as well as through active improvement of customer service.

E-CRM: This is a web based Sales Force Automation tool that helps you to focus on un-covered
customer-revenue opportunities that are not possible in a manual sales process. The architecture
of the product brings your Customers/Sales Teams/Channel partners into a single centralized
structure. This will help you overcome the stumbling block of remote accessibility of information
across your organization. Its easy to use web based interface, faster deployment and effective
implementation will streamline your sales process quickly and in a cost effective way. It records
enquiries, follow ups, complaints and details of any other interaction with the client which
helps to build and maintain life long relation with the customer.

Task What are the significant advancements in the field of CRM?

LOVELY PROFESSIONAL UNIVERSITY 7