2.1Technology Facilities CRM
It is important to understand that Customer Relationship Management is about relations between people. People, not companies, do business. Business existed long before computers and the technology boom in the last decade. Thus CRM was not invented with the invention of computers.
The good practices of relating with your customer did not become obsolete with the introduction of technology, though it has changed the way we make, manage and keep customer relationships. We use the same practices, but we take advantage of the possibilities that technology gives us.
Even though technology makes some processes easier and saves time it might not always have a positive effect on the consumer. For example, it is a different experience for a buyer wishing to purchase a product over the Internet when he is met with a human voice. Technology now makes it possible to purchase products this manner. However customer buying a product over the Internet will not be able to ask for assistance whereas in the old way in conducting business a salesman is always near to offer help and persuade the consumer to purchase the product. The Internet might save time and the hassle of driving to a store but does have certain disadvantages. Therefore technology only facilitates CRM.
In today’s fast business lane, profits are made quick, and young managers tend to buy a CRM software solution. However CRM should already be in place and functioning before starting IT implementation. CRM software and technology itself is only a tool for procedures already in place.
2.2Contribution of Technology in Building Relationships
A common belief today is that sustainable competitive advantages are in some way correlated with customer focused behaviour and CRM technology. In essence, CRM is about retaining customers and customer lifetime value, maximizing new business opportunities and...