Improvement Of Customer Relationship Management And Impact Of A Business

Problem statement

Discuss about the Improvement Of Customer Relationship Management And Impact Of a Business.

Tata motors is a multi-national company that for over years been recognized as one of the most reputable and best motor companies in the world. It was established way back in 1945 and has since then been able to maintain a good and reputable customer relationship with its clients. This is witnessed by the reports which indicated Tata motors have had high customer retention rates.

In the new world error, there has been persistent dynamic changes in all contexts of life, including how business organizations are conducted. This brings about a change in how customers behave and consequently affecting business organizations on the other hand.  It has been identified that customer relation management plays an important role in determining how well a business performs in the market. Much as a business organization is have well set business operational strategies, they are unable to achieve their goals without the help of the customers. This therefore implies that customers are the main stakeholders in the business organization (Kumar, & Singh, 2014, p.127)

This explains why some businesses perform better than others even when they have the same amount of resources and using the same business approach. According to the theory of demand, customers/ consumers aim at utility/ satisfaction maximization and on the other hand, producers aim at profit maximization. Applying this theory into practice, firms have to consider the customer satisfaction before profit maximization. In other words, the variables are inversely related and for a business to succeed in the market, it has to strike a balance between the two. Failure to satisfy the customers will imply a fall in revenue, sales and consequently profits which may drive the firm out of business. Contrary, increased customer satisfaction as a result of reducing prices and improving quality will imply a high operational cost and failure to cover all the expenses which again may drive out the business entity (Mohammed et al., 2014, p.185).

From the preceding insight, we develop a deeper understanding of the importance of customer relationship management in ensuing the survival of a business.

It has been empirically proven by different researchers that the success of any organization or business is solely dependent on the relationship that exist between it and its customers. Before a business initiator thinks of establishing an enterprise, there has always been market research. The research studies conducted as a pre-business establishment is mostly related to the analysis of the potential customers. In this essence, it makes customer relation relationship management an important issue to focus on. Much as there may be ready market for a particular, the relationship that exist between the customers and the client still determine the quantity purchased. This brings in the theory of customer loyalty in business. In today’s dynamic and competitive world, businesses aim at maintaining their market share as well as widening it further. With the preceding intuition there is a bold reason to conduct a research on how the company has been able to manage and withhold its relationship with the customers all over the world. This therefore implies that the research will be streamlined toward establishing the criterion on how Tata motors have been able to boost their customer relationship (Emor, 2016).

Aims and objectives of the study

The research study was intended to clearly point out ways in which Tata motors have been able to competitively survive in the market by effectively managing and maintaining their customer relationship. As highlighted earlier, one of the basic determinants of business success is the marketing criteria, accompanied by effective customer relationship management. The study fundamentally aimed at capturing the different variables available that affect the effective operation of the business model. Precisely, the objectives of the study was listed below;

• To establish the core strategies being adopted by Tata motors in the maintaining customer relationship
• To understand the impact of customer relationship management in the performance and survival of a business entity
• To ascertain the possible ways in which business owners can adopt and integrate technology for the improvement of customer relationship

In an attempt to fulfill the objectives of the study, research questions were formulated so as to guide the research study. In other words, by the end of the research study, the following questions are expected to be fully answered and justifies.

• RQ 1:  What are the importance of customer relationship management in the performance and survival of a business entity (Tata Motors)?
• RQ 2:  What are the strategies being adopted by business organization (Tata motors) for the maintenance of good and reputable customer relationship
• RQ 3: How can organizations and business owners adopt and integrate modern technology for the improvement of customer relationship management?

From the preceding, the research questions have been formulated in such a way that it will allow the adaptation/ use of the study findings in other contexts/ related business. Precisely, the study is comprehensive and applicable to related business contexts (Lai et al., 2016, p.34)

From the basis of the research problem, we already have an insight of the end result expected of the research output. The researcher aims to build a comprehensive finding relating to the impact of customer relation management. The study intend to have a basis of the influence of customer relationship management in the performance of a given company. In reference to the reports, it was empirically found that Tata motors have developed a good and reputable business relationship with its customers. Basing on the fact that the company is one of the best and highly reputable in the market, there is an anticipation that the reason for their success is anchored on their ability to maintain a good customer relationship.

For this reason, the findings of the research will be relevant in giving absolute answers to the hypothetical and theoretical statements being made. This is because, there are a number of research reports that hold different findings in regard to the impact of customer relationship management and a business success. It is substantially true that empirically reliable research studies are vital and very important for better running of contextual activities. Thus, the study findings will be used by business organizations and enterprises in evaluating their performance and making appropriate adjustments for their success in the industry (Ravi, Ravi, & Prasad, 2017, p.807)

Since the research covers a comprehensive perspective including marketing research, business initiators (those who are just planning to implement their business plans) will also find this literature important. This is due to the fact they will need to have a basis of how the business context operates

Research questions

Different research studies have been conducted regarding the importance and impact of customer relation management in a business organization and have a series finding, some having correlation in findings while others are divergent.

According to Wan, Paris, & Georgakopoulos (2015), customer relation management was invented due to the fact that customers have varying demands, preferences and purchasing habits. In other words, they perceive that if all customers had he behavior and character, there would be no or little attention to customer relationship management as it would not be a variable. Due to the differences, understanding the behavior of different customer can help firms in ascertain their performance in accordance to the customers’ needs so as to maximize the overall value of the customer needs and portfolio. The increasing attention by driven to the customer relation management is due to the high saturation of the market which has led to high level of competition with in the market. There has been increasing numbers of businesses being set setup and all intended to gain a market share. Furthermore, as new firms enter the market, the early entrants are threatened of losing market which lures them into paying more attention to customer relationship management thus the increasing importance of CRM to the business firms and organizations (Rahmawaty, 2015).

The modern customer relationship perceptions is highly based and impacted on by the theories and models of development of technology. Recent reports have had divergences and difference to the previous findings. This is due to the dynamic and continuous changes in technological paradigms. However, there is no certainly and generally accepted definition of customer relationship management although there are close relationship among the various definitions put forth by different scholars and researchers. This brings the reasons as to why customer relationship management is has been handled and understood in different ways. Also business have adopted different ways of handling this which all zeros down to the research findings and definitions put up by different researchers. Based on different studies related to CRM, there is a question of whether marketing strategy, customer relationship, customer retention and customer management imply the same thing (Arthur-Mends, 2016)

From the academic perspective, practitioners have comprehensively widened the concept of customer relationship management in an attempt to complete their education for the award of a particular education certificate. It is in this context that a lot of literature have been related to come up new definitions of CRM. Wide research has been conducted to ascertain the challenges that face CRM, the possible solutions and the opportunities that business organizations can take up in order to best implement or succeed in the context of customer relationship management (TAYE, 2014).

Justification and potential output

Söderlund et al (2017) asserted that customer relationship management is a an enterprise initiative that requires the attention of all department of an organization. in his assertion, he maintains the argument that the managing of customer relationship is the sole responsibility of the whole business organization. He bases this on the assumption that production is anchored on chain line, rite from the raw material suppliers to the final polishers of the final products. The mess by a subunit of the production linage will subsequently affect the quality of the final product o service. Reflecting this in on Tata Motors, compromising quality of wheels and tire would affect the final reputation of the company as a whole. With this reflection, his argument becomes is rendered vital and thus important to have a comprehensive organizational awareness of the customers’ relationship and satisfaction (Budiono, 2016).

Sadiq Sohail & Al-Otaibi (2017) clearly indicated that the competitive advantage help by some firms are a result of observing maximum customer relation with their clients. Indeed, some clients will always use a particular product due to the fact that they can get support services whenever required.

Looking at the invention/ introduction of giving product warrantee, after sale services and discounts was as a result of promoting a fair/ good customer relationship. Research has indicated that customers will always prefer to buy from firms/ business that provide product warrantee, even when they charge a higher price as compared to those who do not give warrantee. This is an implication of the fear of the customers to buy counterfeit products. A critical analysis of the concepts brings about trust between the customer and the business entity.

Amerta, Prasetyo & Rahmad (2017) analyzed customer relationship management from a technological perspective and defined it as the process of integrating technology enterprise operations, internet and mobile applications with an attempt of bring the customers closer to the business management. Through this, the customers are able to directly order for the goods that they need, make reviews of the products purchased previously, rate services and make recommendations for a positive adjustment of the business. In recent years, there has been introduction of live chat that supports instant customer complaints and inquiries, all geared towards promoting a better business relationship among the involved parties. Due to the adaptation of the current technology, studies have indicated that the business which are rigid/ non-compliant with technological changes are being driven out as a result of being outcompeted. On the other hand however,

Conceptual framework

 Osei (2017) believes that customer relationship management is not merely the use of technology but rather going deep into understanding the strategies in which it is implemented to make it successful in the competitive context. This encompasses having a cross functional and customer driven goals and management practices that optimizes end to end relationship within the context of technology. Furthermore, the use of technology in customer management may be a destruction and a disguise to a business enterprise. This comes in as a result of continued use of automations, where chatbots are used. It is important to note in this case that artificial intelligence has limits and tend to be ineffective when it comes to handling highly specific and personalized queries.

From the preceding review of relevant literature, it is solid and vivid that there is an accelerating effort being dedicated towards promoting customer relationship among business. It was typical that business are infinitely integrating technology in promoting a better customer relationship. Precisely, there has been positive relationship reflected in the literature regarding the business performance and customer relationship management

Hypothesis can primarily be understood as a tentative statement which has no empical proff or findings. From the preceding literature review, the study will formulate hypothetical answers in relations to the findings of the literature review.

Qualitative research methodology will be adopted for the study. According to the recommendations made by most researchers, qualitative methodology has proved to be one of the best as it allows both subjectivity and objectivity in a study. In this way, an evaluation can be conducted to find out why a phenomenon is the way it is, rather than just taking a quantitative finding without digging deep into the causes. However, it is important to note that the study will also make use of basic quantitative data in making comparisons, correlating and grouping of the information gathered (Rafiee et al., 2016, p.292).

For purposes of collecting the best, reliable and dependable data, earlier research findings of the previous researcher were evaluated to provide a hypothetical and precise insight about the prevailing research study. With a basic understanding developed from the literature review, different reputable organizations were contacted including Tata motors, government bureau of statistics, relevant academic books and organizational reports (Qatawneh, Aldhmour, & Aldmour, 2016, p.137).

Population; the population of the study are the reputable companies who have been in the business for a long time. New entrants will also be included to ascertain the differences in the method being adopted by the two different groups of firms/ business

Sampling method; the study makes use of systematic sampling in which firms will be chosen. This is because the research is streamlined towards ascertaining a specific measureable goals according the research questions

Based on the principles of qualitative research, the collected data will be put into comparison to determine the level of correlation among the various information sources reported. This will involve the use of subjectivity and objectivity in making the conclusion (Ali Kazmi, 2017).

Chapter four will repot findings and analysis of the proposed research. This chapter will give a clear picture of what the world of work is, explaining whether there is a significant impact of customer relationship management in the performance of a business entity

Chapter five will give a summary of the relevant findings and discuss their implications in the business context All research questions as identified will be answered based on the data that will be collected. The findings of the study will be used by other learners as references. Furthermore, the study will be of relevance to the general business world as it will clearly reflect the perspective in which customer relationship management is based.

References

Wan, S., Paris, C., & Georgakopoulos, D. (2015, August). Social media data aggregation and mining for internet-scale customer relationship management. In Information Reuse and Integration (IRI), 2015 IEEE International Conference on (pp. 39-48). IEEE.

Söderlund, J., Sankaran, S., Biesenthal, C., Rego, M. L., Irigaray, H. A. R., Chaves, R. L. P., … & Ang, K. (2017). 3 From the Editors Gary Klein, College of Business and Administration, University of Colorado Colorado Springs, Colorado, USA Monique Aubry, Professor, School of Business and Management, Université du Québec à Montréal, Canada. 5 The Past and Present of Megaprojects Jonas Söderlund, Shankar Sankaran, and Christopher, 1.

Sadiq Sohail, M., & Al-Otaibi, M. F. (2017). Investor Satisfaction with Brokerage Firms: A Study of the Stock Market in an Emerging Country. Amity Global Business Review, 12.

Amerta, L., Prasetyo, Y., & Rahmad, B. (2017). Analysis And Design Of Enterprise Architecture Using Togaf Adm In Analytic Of Customer Care Management At Telecommunication Company. eProceedings of Engineering, 4(3).

Osei, G. (2017). Customer Intimacy Adoption and its impact on Organisational Performance. Journal of Research in Marketing, 8(1), 600-616.

Kumar, A., & Singh, Y. (2014). A Study of Key Factor Affecting Customer Relationship Towards Shopping Mall. International Journal of Business Quantitative Economic and Applied Management Research, 1(4), 118-127.

Ali Kazmi, S. (2017). Impact of Natural, Man-made Risks and Stakeholders Relationship on effectiveness of Supply Chain Management in Developing Countries.

Mohammed, M. A., Kadhim, M. H., Fuad, A., & Jaber, M. M. (2014, September). Follow up system for directorate of scholarship and cultural relations in Iraq. In Computer, Communications, and Control Technology (I4CT), 2014 International Conference on (pp. 182-187). IEEE.

Emor, K. L. (2016). The Influence of Loyalty Program Membership Card and Customer Experience on Customer Loyalty at the Urban Gym Aston Hotel Manado. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 4(2).

Lai, Y. H. R., Chu, J. Y., & Petrick, J. F. (2016). Examining the relationships between perceived value, service quality, satisfaction, and willingness to revisit a theme park.

Ravi, K., Ravi, V., & Prasad, P. S. R. K. (2017). Fuzzy formal concept analysis based opinion mining for CRM in financial services. Applied Soft Computing, 60, 786-807.

Arthur-Mends, E. (2016). Service quality and customer satisfaction: Perception of customers of Zenith Bank Achimota branch Accra (Doctoral dissertation, University of Cape Coast).

Taye, A. (2014). Assessment Of Service Delivery And Customer Satisfaction At Ethiopian Shippingandlogistic Service Enterprise (Logistic Transport Sector)(Doctoral dissertation, St. Mary’s University).

Budiono, G. L. (2016). Strategic Buyer Satisfaction: a Problem of Communication, Commitment and Conflict Resolve. Jurnal Manajemen, 20(3).

Qatawneh, A. M., Aldhmour, F. M., & Aldmour, L. T. (2016). The Impact of Applying the Electronic Cheque Clearing System on Employees’ Satisfaction in Accounting Departments’ of Jordanian Islamic Banks. International Business Research, 9(2), 137.

Rafiee, V. B., Shen, K. N., & Arab, U. (2016, June). The Impact of Corporate response Strategies to Negative Online Word of Mouth on Complainers’ Brand attitude. In PACIS (p. 292).

Rahmawaty, A. (2015). Model Shariah Relationship Marketing dalam Meningkatkan Kepuasan dan Loyalitas pada Lembaga Keuangan Mikro Syari’ah. Jurnal Ilmu Syari’ah dan Hukum Vol, 49(2).

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