March 17, 2012
Information Systems Increases Revenue by building Customer Relationships
According to a research project completed by CFO Research Services, a Senior Vice President of a large U.S-based global services firm stated, “The CFO should always allow IT organization to innovate, to experiment, and [should] understand that there is financial risk associated with innovation. Not every IT investment will have an ROI, but allowing IT to be thought leaders is imperative in today’s evolving technology landscape.” Therefore, technology and IT is central to building relationships with customers’ thereby increasing revenue for the company. The research project also noted that business intelligence, mobility, and cloud computing will be the most important technologies for business over the next three years. Using technology is difficult in today because it is constantly evolving. According to the research conducted by CFO Research Services, it states that “old models based on enterprise silos are giving way to a new hybrid – business technology – as IT organizations, finance functions, and business operations alike acknowledge you can’t have one without the other.” By increasing the integration of advance technology to its fullest potential a company can accurately and effectively meet the customer’s needs and operate efficiently, thereby increase revenue.
In order for companies to build relationships with their customers they must be able to gain the customers trust. According to Jean-Pierre Lauzier of Jean-Pierre Lauzier Communications, “trust is based on a feeling, in impression or a perception – meaning something intangible – and is not based on anything rational or logical. Studies have shown that 15% of a customer’s trust in [a company] comes from the [company’s] technical competency, and 85% from the [company’s] human qualities… To build trust it must be natural and authentic.” In order for a company to effectively build trust with a customer they have to make the customer feel that they know them and are sincerely interested in helping them. One great way for a company to do this is through the use of Customer Relationship Management software (CRM). According to Dr. Ruth N Bolton, “CRM is a strategic approach concerned with creating improved shareholder value through the development of appropriate relationships with key customers and customer segments. CRM unites the potential of relationship marketing strategies and IT [information technology] to create profitable, long-term relationships with customers and other key stakeholders. CRM provides enhanced opportunities to use data and information to both understand customers and co-create value with them. This requires a cross-functional integration of processes, people, operations and marketing capabilities that is enabled through information, technology and applications.” Therefore it is the CRM system that makes it possible for a company to effectively and efficiently communicate with any number of customers so that each customer feels unique. At a high level companies interact with their customer in four ways: Strategic Marketing, Pricing and Revenue Optimization, Tactical Marketing, and Customer Experience Management. Successful companies are efficient and effective in all four categories. Customer Relationship Management software make this possible. CRM provide detailed information about a customer’s interactions with the company as well as analytical information geared to enable the company to successfully provide tactical marketing and enhance the customer experience. They do this by allowing a company to track and record all of the customer’s interaction with the company so that the company can customize their interaction with the customer based on the customer’s previous behavior. According to a Computerworld survey in 1996, companies implement CRM systems in order to 1) increase customer retention, 2) respond to competitive...
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