Critically analyse and explain how CRM systems should help organisations.
Lecturer: Marina Lemos
Table of Contents
Executive Summary 3
History of CRM: 5
Possible limitations of cost vs profit effectiveness. 9
Management and staff limitations: 9
Cost limitations: 10
Time limitations: 11
Cost cutting: 11
CRM as an arms race: 12
This report provides an analysis of customer relationship management systems (CRM). It discusses potential benefits and limitations for their use within an organization with evidence of both from current research literature. The research draws attention to CRM systems and how they can grow and keep relationships with customers and how there can be numerous implementation problems. It concludes that CRM is good tool for marketing but it needs be well implemented and further areas of research are recommended to aid this implementation issue.
Critically analyze and explain how CRM systems should help organizations.
In the modern business world there exists fierce competition for customer’s money. Organisations compete on all fronts of product, price and service to try and win customer’s attentions. Once a customer’s attention has been won it is vital that the organisation handles its relationship with that customer well. If the relationship is handled effectively then the organisation can learn about the customers present and future requirements and by specifically tailoring their service to these requirements they can build a long and profitable relationship.
This approach to maximising long-term customer loyalty and profitability is known as customer relationship management (CRM).
There is much debate within the literature as to the exact benefits of CRM. Whilst some... [continues]
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