Role of CRM in Profitability of Service Organizations: A Case of a Leading Telecommunication Company in Bangladesh Mohammad Mizenur Rahaman (Corresponding Author) Assistant Professor Department of Business Administration Shahjalal University of Science and Technology Sylhet -3114, Bangladesh E-mail: email@example.com Alternative E-mail: firstname.lastname@example.org Cell: +8801716258962, +8801818970170
Mohammad Imtiaz Ferdous Assistant Professor Department of Business Administration Shahjalal University of Science and Technology, Sylhet -3114, Bangladesh E-mail: email@example.com
Md. Zillur Rahman Assistant Professor Department of Business Administration Shahjalal University of Science and Technology, Sylhet -3114, Bangladesh E-mail: firstname.lastname@example.org Cell: +8801716609814
Abstract Realizing the importance of Customer Relationship Management (CRM) systems to increase profitability almost every organization regardless of their size are increasingly adopting CRM systems. Firms use CRM systems not only to automate customer oriented business processes to reduce costs, but also to collect and analyze customer data to better fulfill customer needs and improve customer satisfaction. Telecommunication business in Bangladesh is in a growth stage with stiff competition and making an enormous profit every year. Most of the companies are using CRM. In this study, we have attempted to identify level of application of CRM in leading Telecommunication Company in Bangladesh considering developing model of CRM. Paper will also reveal how important is the CRM strategy of Grameen Phone (GP) Ltd., a leading telecommunication company in Bangladesh contributes in changing Return on Assets (ROA), Return of Equity (ROE) of the company in the stiff competitive market. Keywords: CRM Strategy, ROA, ROE, Cost effectiveness 1. Introduction: Customer Relationship Management (CRM) is a business strategy that enables organizations to get closer to their customers, to better serve their needs, improve customer service, enhance customer satisfaction and thereby maximize customer loyalty and retention. The present business scenario assigns great emphasis to managing business customers. Organizations are quickly recognizing that in order to survive competition, it is important to grab customer attention with unique brand identity and superior service levels. Businesses, which initially focused on finance, sales and marketing management, are now shifting their priority towards customer
Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.2, No.4, 2011
relationship management. CRM solutions are flooding the market with easy-to-use tools to manage business customers. The globalized world is changing very fast. Information and communication technology plays an imperative role in this change. As business conditions continually change, mid -market enterprises are forced to constantly realign their business strategy to maintain profitability and growth (Rashid and Rahaman, 2009). CRM is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. It helps businesses to use technology and human resources to gain insight into the behavior of customers and the value of those customers. CRM systems are enterprise applications that manage business interactions with customers through integrating customer-oriented business processes, including marketing, sales, and customer services (Gefen and Ridings 2002; Karimi et al. 2001). Leveraging CRM systems requires both IT and business managers to have sufficient technical and business skills for carrying out CRM-enhanced operations (Goodhue et al. 2002). So, application of CRM in all types of organization is obligatory, and for service sector...