Customer relationship management (CRM), is a date and information management system that integrates planning, scheduling and the control of pre-sale and post-sale activities within businesses. It helps combine technology and business strategy to support business and customer relationships, and to help businesses develop and implement go-to-market strategies The review is about obtaining mutual understanding the success and failure of CRM. Although CRM has been one of the fastest growing businesses methods of the new millennium, critics point to the high failure rate of the CRM projects as evidenced by commercial market studies. The purpose of the review is to investigate success and failures of CRM system implementations. By studying the two articles which discussing on success-failure of CRM, we found that by understanding the CRM system, we could prevent the potential failure and optimize the system at it’s the best. It is organization priority to understand the basis before implementing the system. A good CRM will really benefit the organization and it is dynamic, change and grows over time and usage.
Both articles relates on Customer Relation Management (CRM), CRM system, application of CRM, Critical Success Factor (CSF). The interesting story in this article is the investigation on failures and success of the CRM. If the company planned the projects well by considering all the criteria, people, the company and external suppliers and work as a team, the project will be successful and vice versa. Furthermore, the project also can be considered as failed if it is over the budget. The first article is based on CRM. The CRM system is defined as the technological business management tool. It is done due to customer segmentation, to maintain relationship, and to know the way to handle unprofitable customer, customize market offering and promotional efforts.
There are two types of CRM which is operational CRM and analytical CRM. Operational CRM is a direct contact with the customer. They face their customer to get the feedback whether it is good or not about their product. Example like when PERODUA called the customer back to get their feedback on the services. Analytical CRM is based on technologies and customer information such as data. Physical resources, informational resources and organisational resources is also needed to implement CRM.
Based on Payne and Frow (in Foss, Stone, Ekinci, 2008), they state that the implementation of CRM should success based on 4 critical factors which are CRM readiness assessment, CRM change management, CRM project management and employee engagement. CRM readiness means the overview audit by the managers. The managers need to view overall position in order to implement the CRM. CRM change management objective is to change the culture and strategic organizational of the company. CRM project management can be implemented by involving all teams and need all employee to involve and support the management for employee engagement.
There are 7 reasons why the CRM failed. The first reason is they view CRM as technology initiative. Second reason is due to lack of customer-centric vision. Furthermore, the insufficient gratitude of customer lifetime value. Moreover, the top management did not fully support the CRM implementation may effect the result. By underestimate the impportance of change management can also give the bad result. The other factor is due to failed to re-engineer bussiness process. Moreover, underestimating the difficulties involved in data mining also can failed the CRM.
The second articles is focus more on CRM and Enterprise Resources Planning (ERP). This journal is more focus on how to manage customer relationship effectively with strictly focus on CSF factors. CRM is more based on customer behaviour. More personal relationship between customer can be form based on analyzing on CRM. CRM is the front-line staff. They are the...
References: 1. Fross, Bryan, Merlin Stone, and Yuksel Ekinci. "What Makes for CRM System Success — or Failure?" (2008)
2. King, Stephen F., and Thomas F. Burgess. "Understanding Success and Failure in Customer Relationship Management." (2007)
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