What is CRM and How It Works
Question:
Demonstrate an understanding of new perspectives on Customer Relationship Marketing (CRM). Identify the critical success factors, and outline the importance of, CRM in terms of marketing strategy in Business to Consumer and Business to Business operations.
CRM or customer relationship management can be referred to as the strategies, practices and technologies that are used by the organizations to manage as well as analyse the interactions with the customers as well as data throughout the life cycle of the customers. This helps the organizations to retain the customers and drive the growth of sales in the process. The systems of CRM are designed in such a way so that the information related to the customers can be compiled across the various channels that are available or the contact points between the customers and the organizations. The contact points of the customers and the organizations include, the website of the company, chat, mail, telephone and social media as well (Šebjan, Bobek & Tominc, 2014). The systems related to CRM also provide detailed information of the customers to the staff who need to manage the customers. The purchase history of the customers, the preference of the customers related to buying and the other concerns are addressed in the CRM of the company.
The CRM implementation in the organizations of China have been a failure for the past few years. The organizations in China are quite wealthy, however they are unwilling to spend on various needs of the companies related to software and hardware of CRM and the integration of CRM in the business system. The customers of the organizations need to be the major focus of the business. The development of China is diverse in nature with respect to the infrastructure, language, culture and maturity of the consumers. The business organizations in China lack in every category related to customer strategy, management of change, redesigning of processes and data (Reen et al., 2017).
The employees of the Chinese organizations are quite hardworking and clever as well. The economy of China has grown quite fast in the past few years. CRM strategies cannot be implemented without employees who are loyal in nature. The consumers of the organizations in China are quite demanding. The organizations of China are successful in their operations, however, there is a lack of creativity. The country is famous for being the production centre of the world. However, the differentiation of the products and the branding related strategies are not quite good. The open nature of the market in China increases the demands of the consumers, and the concerns related to convenience and values of the products are increasing with the increase in the maturity of the consumers (Raicu & Türkes, 2014). The organizations in China that use CRM are Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China, China Mobile and China Pacific Insurance.
The major CRM vendors of China are Zoho CRM, Manage Engine Support Center Plus, Prosper Works CRM, Pipedrive, Net Suite CRM+, amoCRM, Salesforce Sales Cloud, HubSpot Marketing, Microsoft Dynamics CRM, Nimble, Less Annoying CRM, Outlook Customer Manager, Freshdesk, Apptivo CRM, Airtable, Close.io, PipelineDeals, WORKetc CRM. The CRM market in China has grown at a rate of 16.54% within the period of 2014 to 2019. The use of CRM in the modern organizations has increased due to increasing demands of automation of the processes in the organization. The automation of marketing systems increases the ability of the marketers to deliver the relevant information to the correct person within the stipulated time with the help of a channel (Mandina, 2014). The major challenges that are faced by the organizations in China are related to the implementation of CRM systems in fragments. The implementation of the CRM process in the organization in fragments affects the systems of the organization.
Challenges of Implementing CRM in China
The companies in China that use CRM software in China are mainly the internet based on e-commerce organization based in China. The companies include, Alipay, Alibaba Group, Bossgoo, Baidu, Changyou.com, ChinaCache, ChinICT, Chinavision, Ecargo, DHgate.com, Ecargo, Kongzhong, NetDragon Websoft, Sogou, SUNeVision, Wangsu Science & Tecgnology, Weibo, WWE & Company. The internet based organizations make the most use of CRM software. The detailed information about the customers is important for the smooth operations of the organizations (Carmen & Marius, 2016). The internet based companies need to interact with the customers much more as compared to the brick and mortar based companies.
There are different sources that are related to CRM of an organizations. The database of the organizations is stacked along with information about the present as well as the prospective customers (Alcántara-Pilar, 2015). The different types of data sources which can be used for CRM are as follows,
- Data related to past purchase – The most reliable information that can be found in the CRM system of the organization is the data that is related to the past transactions of the customers. The data related to the customers can be easily used and accessed by the management for any future use.
- Sources from referrals – The referrals that are provided by the current customers of the organizations to the prospective customers also act as a lead for the credibility of the CRM system. Customers of the company act as a great source so that the management can create leads (Orenga-Roglá & Chalmeta, 2016).
- Web analytics – The traffic from the various sources are maintained by Google analytics and the cookies are also maintained. The analytics software of Google makes the access and delivery of information to the desired destination in an effective manner.
- The surveys that are conducted by the organizations as a part of their research and development process also contributes to the CRM database of the company. The surveys are conducted with the help of forms that are available in the CRM software of the organizations. CRM software can assist the organizations in updating the operations on a daily basis. The software is used by the organizations for various purposes including the rules and regulations and also streamlining the workflows within the organization (PonPeriasamy & Vijayasree, 2017). The accuracy of the orders that are placed for the organizations are also improved with the help of CRM.
There are different ways through which the CRM can be used by different companies in China. A proper CRM is essential in nature as this will help in tracking as well as analysing different interactions with the customers as well as other prospects. There are different ways through which the companies can use CRM in order to attract more customers and implementing such strategies in the organizations to satisfy the different requirements of the individuals who are the customers.
A proper forward view is essential in nature as the dashboards of CRM will help in monitoring different indicators that are leading in nature. The CRM system helps in allowing registering different contacts as well as leads in the organization. the companies has to implement the software of CRM in such a manner that this will help in making the data efficient in nature. The different interactions among the customers can help in fulfilling the different needs with the implementation of different customer retention programs for each segment (Laudon & Laudon, 2016).
The CRM has to be used in such a manner that this will help in being a valuable asset in the organization and this will help in storing different information of the customers along with different employees who are working with the organization. The proper CRM system is essential in nature that has to be adopted by different companies as this will help in focusing on the relationship with the customers and this will increase the potentiality of the organization as well.
There are different kinds of CRM that can be used by different companies such as:
- Collaborative CRM helps the entire organization in automating the process of sales in the organization. The main aim and purpose of operational CRM is to set proper standards as well as other policies as this will help in acquiring different customers who are new and this will help in dealing with the existing customers as well. Proper automation of sales as well as marketing is essential in nature as this will help in forecasting about the sales that will help in contact management as well (Santos-Vijande et al., 2013). The collaborative CRM will help in nurturing different relationships and this will help the entire business to flourish and attract the customers as well (Hazen et al., 2014). Proper marketing strategies have to be implemented as this will help in winning new customers and this will help in enquiring about the different requirements and demands of the customers as well. The proper demands of the customers is essential as this will help in providing proper chance to the business to grow in the entire competitive market and this will help in gaining new customers with proper implementation of strategies and this will help in making different improvements as well (Trainor et al., 2014).
- Analytical CRM helps the entire top management along with the marketing and sales department that will help in determining the different ways that is better to serve the customers. The proper analysis of the data is essential in understanding the current status of the organization and this will help the entire top management to properly take different decisions that is relating to the quality of the service provided by them along with key performance indicators as well (Brodie et al, 2013).
- Operational CRM that is known as strategic management as this will help in enabling the different customers’ information among different units of business such as marketing, sales as well as technical team. The collaborative CRM will help in uniting different groups in aiming only one goal and this will help in improving the quality of the services provided to the customers and this will help in gaining loyalty as well to increase the sales as well (Beske, Land & Seuring, 2014).
There are different issues that are faced by different companies relating to the proper usage of CRM in different companies. The proper implementation of the different strategies is essential in nature as this will help in analysing the positive impacts of CRM. The different analysis is required to be done as this will help in understanding the usage of CRM and this will help in approving such conduct as well. The ethical consideration is essential in nature to achieve such as analysing the impact of such services that will help in making the CRM more potential in nature and this will help in exploring the ethical considerations relating to CRM as well.
Top CRM Vendors in China
Conclusion
Therefore, it can be concluded that proper customer relationship management is essential in nature as this will help the different organizations in creating a positive working environment. Proper channels of communication is essential with proper advancement in technology as this will help in making the business more effective in nature and this will help in improving the communication channel as well. The proper effective communication channel is essential in nature in order to improve the experiences of the customers and this will help the companies in improving the brand image of the company as well. The new business can be properly analysed as this will help in keeping up to date with the demands of the customers and this will help in operating in a competitive market. CRM tools will help in identification of then potential customers as this will help in achieving the target audiences as well.
Therefore, it can be recommended that proper customer relationship management is essential in nature as this will help in analysing the different strategies that has to be adopted by the company as this will help in satisfying the different requirements of the customers. The customer relationship management is cost effective in nature as this will help in setting a demographic profile as this will help in identification of the potential customers and this will help in flourishing the business as well. CRM is proper nurturing the different relationships with the different individuals and this will help them in making the customers return as well. Proper CRM software is essential in nature and this will be effective in nature as well.
References
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Carmen, R., & Marius, S. (2016). Customer Loyalty Using Customer Relationship Management. Management Strategies Journal, 31(1), 285-288.
Hazen, B.T., Boone, C.A., Ezell, J.D. & Jones-Farmer, L.A., (2014). Data quality for data science, predictive analytics, and big data in supply chain management: An introduction to the problem and suggestions for research and applications. International Journal of Production Economics, 154, pp.72-80.
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