Introduction
Modernism and the growth of high competition in the business environment have necessitated the development of modern business strategies. One of such strategies is Customer Relationship Management (CRM). Imagine walking into your favorite restaurant and sitting in a different corner since your usual spot is occupied. Before making any order, the waitress comes around with a radiant smile, greets you by your name, and asks if she can serve your usual. Wow! The feeling must be overwhelming. In a few words, this essence is created in action by Customer Relationship Management (CRM). Over the decades, Customer Relationship Management (CRM) systems have been a great tool in business settings by providing and managing interactions with existing and potential clients. This discussion will define and deliberate critical aspects of Customer Relationship Management (CRM), give two real-world examples, recommend future trends, and highlight some criticisms on the subject matter.
Definition of Customer Relationship Management (CRM)
Customer Relationship Management (CRM) offers a blend of practices, strategies, and technologies to manage relationships and interactions with current and potential customers. CRM is the all-inclusive philosophy that blends marketing models with business tactics to manage customer relationships efficiently (Idzikowski et al., 2029). The focus and the point of attention is the customer and their wants, including their security, in connection with a business. A business will gain knowledge of the target audience through effective Customer Relationship Management systems and create perfect strategies to acquire and retain them. It has been a strategy used in many industries in constructing and nurturing customer relations to initiate sales growth, improve customer loyalty, and, eventually, enhance profitability. Through effective CRM practices, businesses have flourished in revenue and profitability.
Component of Customer Relationship Management (CRM)
The key components of Customer Relationship Management have grown over time. Many academics have classified the CRM components into three key constituents: people, technology, business culture and relationship, and the process (Al-Homery et al., 2019). Occasionally, the strategy, the process, and the information system are defined as the three interconnected theoretical components of CRM. The modern world has diversified the components to fit all the possible scenarios in the CRM system. Customer data management, sales and marketing automation, analytics and reporting, and Customer Service and Support give the CRM system components a broadened perspective.
Benefits of Customer Relationship Management (CRM) systems
Customer Relationship Management (CRM) systems allow businesses to gather, store, and manage customers’ data. With this information, businesses can mine data for valuable insights, such as forecasting future trades and automating marketing and sales procedures. CRM systems have created value for businesses through various benefits. Enhanced ability to target profitable customers, Integrated assistance across channels, Improved sales force proficiency and efficiency, better pricing, modified products and services, and upgraded customer service competence have been the core benefits of CRM systems in institutions (Dalili & Beheshtifar, 2018). Customer satisfaction, improved sales, efficiency, and better decision-making comprise the list of benefits CRM systems provide.
Types of Customer Relationship Management (CRM) systems
There are three known and operable CRM systems. The operational CRM systems are designed to implement sales, marketing, and customer service purposes, while the Analytical CRM systems facilitate comprehending how projections are moving through the sales channels. On the other hand, Collaborative CRM Aids in communication and partnership with clients across numerous channels. All the above CRM systems help in sales management, marketing mechanization, analytics and Reporting, customer care support, workflow automation, and assimilation with supplementary systems.
Two real examples of Customer Relationship Management (CRM) systems
One of the most excellent CRM systems of our time is the Salesforce. It is the leading and widely used CRM system. Salesforce aids a business deal with client networks, integrated with diverse frameworks, and production of specified applications (Thakkar & Rajaan, 2020). The system assists businesses in managing their client relationships by offering tools for sales, advertising, and customer service. Through Salesforce, marketing teams have been able to create and manage marketing campaigns and monitor the campaigns’ effects by monitoring the gained sales and customer interactions. Its most significant advantage is that it offers an all-inclusive set of CRM solutions for businesses of all magnitudes and trades.
The Amazon CRM system is the second CRM known but specified to its users. In order to increase customer fulfillment, trust, and loyalty, Amazon uses a customer relationship management (CRM) structure (Al Imran, 2014). One of their most excellent strategies is collecting significant data through their client’s browsing history and purchasing behaviors. Through such experiences, Amazon perceives its client’s interests and recommends any potential products in line with their interests. In other cases, they will send personalized emails with endorsements and promotions. Moreover, Amazon’s customer service is exceptionally receptive, with modified features such as easy returns and repayments, active communication on order position, and modified support founded on past dealings.
Future trends in Customer Relationship Management (CRM) systems
Forecasting future trends in Customer Relationship Management (CRM) systems includes forestalling advances in the fields of technology, customer conduct, and business requirements. Among the potential trends to contemplate include AI and Predictive Analytics. Artificial Intelligence (AI) methods are perceived as the study’s lead in information recovery and information filtering structures. They are perfect for use in CRM programs, which incorporate user data created from official and casual relations, counting clients and suppliers (Avdagić-Golub et al., 2022). AI is taking over, and the CRM teams must consider integrating it into their CRM systems. The Omni-channel Experience will enable clients to interrelate with businesses through multiple networks (e.g., website, social media, mobile app, in-store) and obtain steady and personalized services irrespective of the channel. This is happening, and the customer user experience is fantastic. Mobile and social CRM are among the anticipated future trends in CRM systems. Increased use of mobile and social platforms will necessitate the creation and use of such widely. Other trends will include voice assistants and chatbots, subscription-based models, and vertical-specific solutions.
Critics of Customer Relationship Management (CRM) systems
Despite its profound efficiency, Customer Relationship Management (CRM) systems have been criticized due to some factors. Complexity and cost have been raised over the systems with high knowledge and costs needed to operate CRM systems. User and adoption challenges, data quality and assimilation concerns, privacy and data security worries, over-reliance on technology, and lack of customization and flexibility are profound criticism topics.
Conclusion
Customer Relationship Management (CRM) systems remain crucial in running modern businesses. They are proficient in running business operations and gaining customer experience and feedback. CRM systems are taking over in strategizing business operations. Each company is adopting CRM systems, and the user experiences have been more than profitable. The growth of technology and the advancement of the Artificial Intelligence experience is groundbreaking regarding CRM systems. We are anticipating its business operations and customer relations for more benefits with the growth and development of Customer Relationship Management (CRM) systems.
References
Al-Homery, H. A., Ashara, H., Ahmad, A. (2019). The Core Components and Types of CRM. Pakistan Journal of Humanities and Social Sciences January – March 2019, Volume 7, No. 1, Pages 121 – 145
https://journals.indexcopernicus.com/api/file/viewByFileId/1882969#:~:text=Many%20researchers%20have%20categorized%20the,interrelated%20conceptual%20components%20of%20CRM.
Al Imran, Md Abdullah. (2014). A STUDY ON AMAZON: INFORMATION SYSTEMS, BUSINESS STRATEGIES AND e-CRM. 10.13140/RG.2.1.1366.8247.
https://www.researchgate.net/publication/261440748_A_STUDY_ON_AMAZON_INFORMATION_SYSTEMS_BUSINESS_STRATEGIES_AND_e-CRM
Avdagić-Golub, Elma & Kosovac, Amel & Čolaković, Alem & Begović, Muhamed. (2022). New Trends and Approaches in the Development of Customer Relationship Management. 10.1007/978-3-031-05230-9_83.
https://www.researchgate.net/publication/360844855_New_Trends_and_Approaches_in_the_Development_of_Customer_Relationship_Management
Dalili, A., & Beheshtifar, M. (2018). Exploring the benefits of customer relationship management. Specialty Journal of Knowledge Management, 3(3), 10-16.
https://www.researchgate.net/profile/Malikeh-Beheshtifar/publication/332369562_Science_Arena_Publications_Specialty_Journal_of_Knowledge_Management_Exploring_the_Benefits_of_Customer_Relationship_Management/links/5cb017ae92851c8d22e52579/Science-Arena-Publications-Specialty-Journal-of-Knowledge-Management-Exploring-the-Benefits-of-Customer-Relationship-Management.pdf
Idzikowski, Adam & Piotr, Kurylo & Cyganiuk, Joanna & Ryczko, Marta. (2019). Customer Relationship Management (CRM) – Philosophy and its Significance for the Enterprise. System Safety: Human – Technical Facility – Environment. 1. 1004-1011. 10.2478/czoto-2019-0127.
https://www.researchgate.net/publication/345467775_Customer_Relationship_Management_CRM_-_Philosophy_and_its_Significance_for_the_Enterprise#:~:text=CRM%20is%20the%20entire%20philosophy,in%20relationship%20with%20a%20company.
Thakkar, Makrand & Rajaan, Rajesh. (2020). Salesforce CRM: A new way of managing Customer Relationships in cloud environment. International Journal of Electrical, Electronics and Computers. 5. 14-17. 10.22161/eec.533.
https://www.researchgate.net/publication/341457017_Salesforce_CRM_A_new_way_of_managing_Customer_Relationship_in_cloud_environment
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