Statement Analysis: Customer Relationship Management
Introduction
With the rapid transition in the business market, consumers or clients also changes and they become more aware, conscious, knowledgeable, observant, and demanding. In this regard, the management of different companies try to shift their focus on their target market to maintain and sustain their competent advantage and advantage . Such changes mean which the firms have to completely transform their conventional objectives and purposes and purposes from being process-focused to customer-centered or customer-oriented. Rethinking and restructuring the companies on one hand, entails the consideration of different factors that consists technology, process, environment, and the human capitals aspects (Cohen & Moore, 2002). Hence, to be able to bring quality and outstanding customer services embedded in the operation of the firms, the management must be able to consider and use fine-tuned customer management methods and techniques.
One of the most significant management methods and techniques which can be used to ensure good customer relationship is the implementation of Customer relationship management (CRM) by the intensive methods and techniques that can result in having or maintain and sustaining competent advantage and advantage (Butler, 2000). It can be noted which managing customer relations has also effect on the concept of direct marketing. Through direct marketing with the concept of managing customer relationship the firms can be able to consider this to optimize the effect of persuasive communication on both the non-consumer and consumer that consists of trade and professional audiences by coordinating the aspects of the marketing mix that consists public relations, advertising, package design, promotions and direct marketing (Moore & Thorson 1996).
The concept of customer relationship management is said to be essential to this generation considering which most of the products and services available in the market have certain similarities. Primarily, the goal of this paper is to analyze the statement of Kumar and Reinarts (2006) that states which “Successful strategic CRM will be a complex set of process and procedures which together form the basis for a maintain and sustainable and hard-to-imitate competent advantage and advantage ”, pp 33.
Customer relationship Management
As mentioned or noted by Kumar and Reinarts (2006), “Successful strategic CRM will be a complex set of process and procedures which together form the basis for a maintain and sustainable and hard-to-imitate competent advantage and advantage ”. This statement means which if firms would be able to use strategic managing customer relationship successfully, they can be able to maintain and sustain their competent advantage and advantage and they can have business approach that is unique and distinctive from their competitors. Perhaps, business approach is the most significant key to successfully have maintain and sustainable competent advantage and advantage and the integration of these approach with the concept of managing customer relationship can make an firm to establish unique, distinctive and hard-to-imitate competent advantage and advantage .
In order to do so, firm’s management must realize which, either directly or indirectly, the attainment of its objectives contributes to the much to the target market’s general experience within the firm. The successful integration of the process, technology and people is considered to be the significant aspects for successful implementation of the managing customer relationship methods and techniques (Greco & Ragins, 2003). The CRM methods and techniques, as based on the statement provided above, the firms may set process and procedures that starts with the purposeful and intensive alignment of the processes implemented by the entire management of specific firm. These set of process and procedures may consists the planning, organizing, directing, and controlling process, that are all catered to provide and satisfy the needs of the target market or the consumers (Cohen & Moore, 2002; Williams, 2003). Hence, customer management relationship can also be considered as a form customer service management that adheres more than the attainment or achievement of customer satisfaction but the retention of the consumers and making them loyal which no other rival firms can outgrow. Aside from this, other set of process and procedures which may lead to a maintain and sustainable competent advantage and advantage through the help of the managing customer relationship methods and techniques is the balance between enhanced and development firms processes and renewed objectives. In this regard, the firms should ensure which consumers should also feel which the companies and businesses they support or patronize give due value and importance, and also vitality to their customer relationship operations (Gerson, 2005).
Furthermore, such concept should also consider the significant of the change management process as a set of process and procedures which geared towards attaining hard-to-imitate competent advantage and advantage . As mentioned in the given statement mentioned above, a firm or business which consider and used managing customer relationship as part of their business operations was noted to have maintain and sustainable competent advantage and advantage than companies which do not adhere to value their customer relationship.
It can be noted which managing customer relationship is concentrated to the use of information technology that can be helpful in adhering to the concept of direct marketing since it consists a complex set of activity to aid the firms to stay abreast of its client’s demands and needs and maintain and sustain their competent advantage and advantage . The statement of Kumar and Reinarts (2006) can also be perceived which managing customer relationship also make the firms to appropriately respond in time to the calls of their consumers. The statement makes the firms realized which managing customer relationship is a business methods and techniques and process that encompass different business approach other than the implementation and application of information technology. The methods and techniques on the managing customer relationship also encompasses all other process and procedures of the business processes in that an companies utilizes so as to determine, select, gather, enhance or improve and retain their target market and ensure good rapport and relationship with them, that is also significant to maintain and sustain competent advantage and advantage .
It can be noted which during this time, the managing customer relationship is noted as a integration or incorporation of set of process and procedures,, technological solutions and advanced analysis, that makes different companies understand clients from a multifaceted concept that in return made them to have hard-to-imitate competent advantage and advantage . This tool will be useful for the identification of the preferences of their target market and through this the firms may even ask some feedbacks or comments directly from their target market.
The internet or the World Wide Web has been a valuable source of information in creating the one-to-one marketing communication methods and techniques. In addition, the internet or the World Wide Web is also a very good avenue for direct marketing because many individuals surf the web and many transactions are done through the website. Furthermore consumers can also subscribe the products or services through its web site (Duncan & Moriarty, 1998). Through the understanding of this statement, firms are able to establish in-depth and more profitable customer relations management methods and techniques (Sabin, 2004).
Sample Companies that used CRM
To be able to create hard-to-imitate and maintain and sustainable competent advantage and advantage, different firms are able to apply the concept of customer relationship management as part of their business approach. One of the companies which use CRM is the Irish Life and permanent, that gives broad range of investment products, life insurance and assurances and pension for different individuals and groups or commercial entities to over a million consumers across Ireland. The firm is considered as the market leader in the Ireland market, and because of this their aim is to merge with TSB Bank to be able to become the largest provider of financial services within the nation (CRMToday, 2004). In these two separate companies, there are three managing customer relationships that has been utilized that makes it difficult to determine. Both of these companies attempted to use single managing customer relationship methods and techniques to be able to present a united post-merger image and give their sales power the information which it needed to sell joint products. To be able to maximize their sales revenues and also enhance their customer satisfaction, these firms have use, a software platform that makes them to maintain and sustain seamless, quality sales and also quality through multiple lines of business portfolios, product lines, and also communication channels. With their combined profile, each of the customer’s business data and history from these merged firms can make it easier to determine and Furthermore the Irish Life and Permanent are also given the chance to determine determine prospects for a more maintain and sustained competent advantage and advantage and more advanced business growth.
With the issues and conflicts of handling large customer data, the use of managing customer relationship methods and techniques has been able to solve the issue by using the HP server that is responsible to become the database server. In this regard, a combined single view of customer information and data are being noted. Furthermore, the managing customer relationship also makes the firms to have an intensive image of the different financial products and services which they offer. It can be noted which the use of the managing customer relationship methods and techniques at Irish Life and Permanent’s Information technology department under a great deal of pressure and stress to be able to urgently get the solution implemented and in production. Nonetheless, after overcoming such managing customer relationship initial challenges, the use of the managing customer relationship methods has been able to make Irish and Life Permanent have the opportunity to sell its items and products with their TSB clients via the customer information analysis; that also consists the automatic generation of recommendations and also the negotiation of financial models that depends on the client’s distinctive profiles and presentation of such solutions in different eye-catching and emphasis-catching graphical and text-based styles. In this regard, the managing customer relationship methods had also marked Irish Life and Permanent to present personal finance to their respective clients using a highly professional, holistic, and tailored manner. By and large, It can be noted which the managing customer relationship applied in this firms had been able to enhance their competent advantage and advantage and also enhanced the customer satisfaction and makes the firm become the best provider of personal financial services in the entire Ireland (CRMToday, 2004).
Another firms which uses the managing customer relationship and to establish competent advantage and advantage is FAW-Volkswagen. The firms has been established and founded in 1991 and was regarded for its production of contemporary cars all over China. Furthermore, this firm is also known to be the sole car manufacturing firm in China that was able to manufacture and distribute a medium and luxury class sedan for their target market. FAW-Volkswagen was also considered to be among different companies that have been able to use the concept of managing customer relationship methods and techniques. The FAW-Volkswagen has decided to utilise and apply a managing customer relationship methods and techniques because of the major business challenges that consists slow reaction times, unresponsive customer service, lack of real-time information, deficiency of the incorporation of data and processes and the perceived shortage of IT personnel in the firms (SAP AG, 2001).
This car manufacturing firms has been able to put their products on sale tall throughout the regional dealers. Nonetheless, FAW-Volkswagen has encountered failure in acquiring the direct customer feedback it needed to make sue which they will be able to attain quality and outstandingcustomer service and quality products and obtain market intelligence all over China. Within six month-period, the management of the firms has been able to decide to use and implement the concept of mySAP Managing customer relationship (mySAP CRM) to be able to maintain and sustain their competent advantage and advantage and to enhance their customer service and acquire more vital data and information about its client base, to know whether their products adhere to their needs. The car firm perceived which mySAP CRM can help them in reinforcing their good relationship with the clients and consumers and also integrate the entire function of customer service. The main goal of the implementation of the managing customer relationship in the firms is generally concentrated on three main factors, that consists the sales, service, and marketing approach to have maintain and sustained competent advantage and advantage . Through the managing customer relationship methods, the firms’s consumers have been able to access and avail the FAW-Volkswagen through different communication channels such as telephone, fax, e-mail and with their website, they have reached even international clients. The managing customer relationship methods is tightly integrated, and combined with set of process and procedures of the firms to make the firm to share communication and information with their target market, service representatives and the entire firms (SAP AG, 2001).
As mentioned or noted by the management of FAW-Volkswagen, the managing customer relationship has maked them to make real-time information on products, and also their dealers and suppliers that also make their firms more accessible for the clients. As a result, the managing customer relationship methods had been a significant methods and techniques in enabling customer service representatives to have the information of their latest product and cars and they are able to attend to customer concerns anytime and anywhere (Ody, 2000).
Managing customer relationship methods ranges from the simplest contact-management methods which give emphasis on assisting or helping individual staffs or personnel to most complex enterprise-wide and cross-enterprise methods. The main role of managing customer relationship methods for the firms is to connect the suppliers and the consumers. Managing customer relationship methods also guarantees which consumers have a consistent experiences all over different sales channels. An efficient implementation of customer relationship management methods meet the needs of the customer, the staff or employee and the firms by means of utilising methods elements in several, different ways. Such elements and its implementation mirror the success or failure of the marketing design of any organisation as the management-centred functions of CRM methods (Soltners, 2001). As mentioned or noted by Cohen and Moore (2000), CRM is concentrated on the use of information technology so as to aid the companies to stay abreast of its consumers’ demands and needs. Managing customer relationship also helps the companies to respond in time and appropriately to their consumers’ concerns.
Another firm which uses the concept of managing customer relationship methods is the Interamerican Group that is a leading Greek insurance firm. Throughout the years, the firm has been capable of maintain and sustaining their competent advantage in the life insurance field in Greece. In addition,, the firm is also known to be one of the leaders in property and casualty insurance aspects.. Since 2001, the firms has become part of a Dutch Holding firm that is commonly known as Eureko BV, in that approximately owns 98.07% of the insurance firms’s share capital in the marketplace (SAS, 2002).
In spite of the progressive growth of the insurance firms, competition within the Greek automobile insurance market stays active and strict. For the past ten years, the statistics of the firm have shown alarming results. For instance, a 35% increase on the number of aims and purposes has been observed. A 317% increase was observed in the average cost of objectives and purposes whereas only 226% increase was derived from the average premium (SAS, 2002). Though these results were not as bad as in the Interamerican case, still the results alone were enough for the firms to be alarmed.
The use of the managing customer relationship methods in these firms had been able to make them achieve their company’s objective based on revenue growth in order to develop competent market share without leaving profitability behind (Light, 2001). The managing customer relationship application within these firms has also made the firms to determine customer segments and related exceptions leading to having maintain and sustained competent advantage and position. Furthermore, the managing customer relationship integration also helped Interamerican Group to create underwriting rules through enhanced understanding and comprehension of the pricing policy and also its implications to the business. As mentioned or noted by the management of the firms, the use of managing customer relationship methods and techniques has also allowed them to pave the way for an efficient response to the trends in the marketplace, leading them to maintain and sustain competitive advantage and advantage but perhaps the most essential thing is which the use of managing customer relationship has taught them w how to understand and serve their different rate groups better and efficient and how they can maintain and sustain good customer relationship to their target clients (SAS, 2002).
Conclusion
Based on the analysis and the given samples of firms which considered customer relationship management, It can be noted that the statement being analysed is true and correct since the use of managing customer relationship makes different firms to use all their resources to gain complex set of process and procedures which would make them to have maintain and sustainable and hard-to-imitate competent advantage and advantage. Hence, it can be argued which, if a an organisation would want to implement CRM as part of their methods or approach, the management of such firms must be able to make a comprehensive and intensive planning and an efficient execution to achieve their organisational objective.
Reference
Butler, S. (2000). Changing the Game: CRM and the e-World. Journal of Business Methods and techniques, 21, 13-14.
Cohen, S. & Moore, J. (2002). Today’s Bussword: CRM. Public Management, 82(4), 10.
CRMToday. (2004). HP-Irish Life Customer Success Story. Retrieved: December 13, 2008 Website: http://www.crm2day.com
Gerson, R. (2005), managing customer relationship: What’s Wrong with it and How to Improve it.Gerson Goodson Inc. Retrieved January 3, 2008, from http://www.richgerson.com/assets/uploads/Customer_Relationship_Management.pdf#search=’Customer%20RElationship%20Management’
Greco, A.J. & Ragins, E.J. (2003). Managing customer relationship and E-Business: More Than a Software Solution. Review of Business, 24(1).
Kumar, V and Reinarts, Q (2006), Managing customer relationship, USA: Wiley, pp. 33
Light, B 2001, ‘A review of the issues associated with managing customer relationship methods’, The 9th European Conference on Information Methods, June.
Ody, P. (2000) Selling a New Methods and techniques, Financial Times Supplement, Spring, 6-7.
SAP AG (2001). FAW-Volkswagen Implement mySAP CRM in six months to forge direct link consumers for enhanced service. The Best-Run E-Business Run SAP.
SAS (2002). Interamerican always ahead…again. SAS Institute, Inc.
Williams, E. (2003). Managing customer relationship. Retrieved: December Website: http://searchcrm.techtarget.com
Sabin, J. (September 2004). The Next Generation. Direct.
Credit:ivythesis.typepad.com
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