This paper presents an overview of the CRM implementation in manufacturing industry, it attempts to show the benefits, disadvantage, strategy and challenges involved in CRM implementation in relation to the manufacturing industry. After which, a case study on CRM implementation was presented.
Traditionally manufacturing industry was product centric in nature. Manufacturers, had soon realized that relying on their products to increase profitability is no longer the answer. They are accepting the fact in order to boost sales they had to pay more attention to the customer needs and satisfaction.
CRM is the customer strategy that manufacturers adopting, CRM software gives manufacturers the extra edge in identify and target potential customer. It allows absolute marketing effectiveness.
Advantages of CRM in Manufacturing company
When we think about the manufacturing process, it would say that it involves a lot of complex process. Starting from the making of the product until delivery to the the customer site. A long time ago company was focusing in product or called as product oriented, since few years ago company realized that in order to stay on track they need to change their strategy into more customer oriented. So now most of the products developed are based on customer preferences or making the customer as part of the business process.
Manufacturing is one of the sectors to realize that customer part in order to achieve great sales and improve profits. The needs to have CRM in manufacturing industry based on their process which requires them to improve the business process. CRM would give them extra time and efficiency to face the challenges between manufacturing companies, not only that but it also makes them knows their customer. So they would target the right customer through the right marketing ways. The benefits of CRM for manufacturing industry are:
1. Improve company revenue
2. Increase efficiency in workflow
3. Capability to do sales forecasting
4. Reduce the business.
5. Improve customer interaction
6. Targeted marketing approach enhanced marketing effectiveness
Challenges of CRM implementation
Successful CRM Implementation can provide better customer insight in order to acquire, retain and foresee the prospective customer. In order to achieve successful CRM implementation we need to know its challenges. Gerhad et al. (2008) has identified few aspect that contributed to the failure of CRM implementation which is
1. Ineffective change management
2. Lack of top-level executive support
3. Lack of customer vision
4. Lack of understanding of customer life time value
5. Lack of cross-functional teams in implementation/planning 6. View CRM solely as technology solutions
7. Long and over budget implementation
8. Underestimating difficulties in data mining and data integration
Ineffective Change management
Organization will undergo a substantial cultural and technology change from CRM implementation. One of the cultural change is that employee refuse to accept something new or innovative. It is suggest that participation of employee into the process will likely to make the implementation success. Whereas, it is suggest that management style of manager and supervisor is also the factor that will affect the acceptance of changes by the employee. Eventually, the longer it takes for employees to accept the changes it will likely to make the system fail. Besides that, senior level understanding is usually critical in CRM implementation. Rigby, Reichheld, and Schefter (cited in Payne & Frow 2006) mention that one of the reasons of CRM failure is that “senior executive don’t understand what they are implementing, let alone how much it cost and how long it will take”. Therefore it is vital to effectively communicate the CRM objective and goals within the organization.
Lack of Top Management Executive...