Crm Failure Study

Topics: Customer relationship management, Customer service, Social media Pages: 35 (4929 words) Published: March 6, 2013
Bojan Nožinić Seminarski rad Metode poslovnog upravljanja


Failures, trends and the uprising of the social media

What’s it all about?

Customer Relationship Management, or CRM, is an information technology industry term for methodologies, strategies, software, and other web-based capabilities that help an company to organize and manage customer relationship. For instance, if a marketing department runs an outbound campaign, all of the information about the customers and the program should be retained for the sale staff to follow up on, the customer service representatives to answer any queries, and technical support to provide any field support. The idea is to have the same information available to all in the company so that every product or service need of the customer is met. CRM implies that everyone in the enterprise is focused on the customer 1 . Customer Relationship Management is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and organization. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a strategic process that will help you better understand your customers’ needs and how you can meet those needs and enhance your bottom line at the same time. This strategy depends on bringing together lots of pieces of information about customers and market trends so you can sell and market your products and services more effectively. In short, it’s a business strategy, as Gartner Inc. implies. The idea of CRM2 is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. With an effective CRM strategy, a business can increase revenues by: - providing services and products that are exactly what your customers want - offering better customer service - cross selling products more effectively - helping sales staff close deals faster - retaining existing customers and discovering new ones


On-Premise vs. On-Demand battle The traditional method of software implementation is on-premise which basically means purchasing software, installing it on site and on company’s own servers while ondemand is a hosted model in which a software is hosted by a third-party service provider (vendor) on vendor’s premise. The same concept is also known as a SaaS (software as a service) or utility computing 3 . So which of the following models is better for CRM implementation, short/long term speaking? While there is a general opinion that on-premise model is easer to customize and integrate with other applications and data, it is also a less expensive option in long-term relations (as it is treated as an investment rather than an ongoing expense4). It is also easier to use with more complex functionality with remote environments. There are also security, integration, cost and speed issues concerning the nature of on-demand solution. A common belief is that ondemand systems are unable to integrate with companies existing systems. That’s not necessarily true since most on-demand applications come with open APIs, which allows you to integrate easily. APIs allow one system to talk to another system in a very open way5. Since on-demand CRM is typically a subscription service (month-to-month usually), the question is what happens with company’s data after the contract expires? Most CRM on-demand providers offer the option for customers to receive a backup of their data, which is good but it doesn’t provide immediate...
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