Customer Relationship Management- Essay Paper.
Customer Relationship Management: Technological advancement over the years has significantly seen the increase in the use of information technology (IT) in numerous business transactions. Currently, information technology is a core pillar in the establishment and maintenance of a successful business. IT is vital in improving efficiencies, performances, and substantially maximizing output (Peeroo et al., 2016). Numerous information technologies are vital when managing the macro-processes of a supply chain that multimillion-dollar companies such as Walmart implement to improve their sales. Customer Relationship Management- Essay Paper.These technologies include Customer Relationship Management (CRM).
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Customer Relationship Management (CRM) refers to the approaches, techniques, and technologies that companies implement to study customer behavior to improve customer service effectively. As such, these efforts are geared towards customer retention, which subsequently improves sales and profits. CRM software systems collect data about customers from different sources or areas where the customers interact with the firm (Nicuta et al., 2018). Such areas include the point of sales, customer feedback, and customer forums. Customer Relationship Management- Essay Paper.The systems analyze the data to establish trends in the market. From the analysis, a firm meets consumer demands efficiently, therefore, not only attracting new customers but also retaining them.
The CRM system saves customer information such as comments, complaints names phone numbers and emails for managing and organizing interactions with potential customers. On-premises CRM, Cloud-based CRM, and Open-source CRM are examples of CRM technologies. A primary example of these systems is Social CRM. This system involves engaging with customers on social media platforms such as Facebook and LinkedIn. Through these sites, customers share their experiences with the company and receive feedback (Peeroo et al., 2016). More so, companies also use social CRM to promote their products to larger audiences. Customer Relationship Management- Essay Paper.
Walmart is one of the companies that has significantly invested CRM software systems. Walmart is one of the leading retail store franchises in the United States. The franchise can credit its success in implementing emergent business practices and technologies that enable it to adapt to changes and garner a competitive advantage (Nicuta et al., 2018). The CRM software system is one of the primary technological approaches that Walmart has implemented to support their Marco-processes and rip maximum profits.
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Walmart has one of the largest data warehouses in the world for their CRM software which monitors precisely what the customers buy. Therefore, the stores stock the popular products that customers are likely to purchase. Further, they are likely to arrange them in a manner that will influence the buyer to purchases complementary items (Williams et al., 2017). It is vital to understand that Walmart does not primarily rely on CRM technologies to create customer profiles; rather, local store workers are responsible for providing the system with feedback from their regular customers whose needs are well understood. Customer Relationship Management- Essay Paper.
Conclusively, CRM software systems are most effective when implemented with other customer relation approaches as it relies primarily on the use of accurate data. Even though CRM software systems are effective, they have various disadvantages. Use of inaccurate data presents the biggest threat to these systems as they result in inaccurate conclusions that mislead the company (Williams et al., 2017). Further, CRM systems often require the company to invest more funds in developing and maintaining the software and storing customer information. Further, employees require additional training to use the technology. Customer Relationship Management- Essay Paper.Therefore, technology increases operation costs. Additionally, CRM systems are challenging to integrate with other management information systems (Kumar & Reinartz, 2018). When a firm overcomes these challenges, it can profit from the benefits of Customer Relationship Management software systems.
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References
Kumar, V., & Reinartz, W. (2018). Impact of CRM on marketing channels. In Customer Relationship Management (pp. 237-264). Berlin, Heidelberg: Springer.
Nicuta, A. M., Luca, F. A., & Apetrei, A. (2018). Innovation And Trends In Crm-Customer Relationship Management. Network Intelligence Studies, (11), 21. Retrieved from https://ideas.repec.org/a/cmj/networ/y2018i11p21-25.html-25. Customer Relationship Management- Essay Paper.
Peeroo, S., Samy, M., & Jones, B. (2016, September). Generating Customer Engagement and Customer Enragement on Facebook Pages of Tesco and Walmart. In Conference on e-Business, e-Services and e-Society (pp. 146-156). Berlin, Heidelberg: Springer.
Williams, P., Ashill, N., & Naumann, E. (2017). Toward a contingency theory of CRM adoption. Journal of Strategic Marketing, 25(5-6), 454-474. https://doi.org/10.1080/0965254x.2016.1149211. Customer Relationship Management- Essay Paper.