CRM Implication in IT

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CRM Implication in IT

S.Kalesha Masthan Vali, Research scholar, Department of Management,

Bharatiyar university,Coimbatore,

Dr. K.V. S. N Jawahar Babu, Head of the Department, Vikramasimhapuri university,

Department of Tourism Management , Nellore.

S. Ismail Basha,

Assistant Professor, Department of Computer Applications, KMM Institute of Post Graduate Studies,

Tirupati,

Abstract – Extant research is equivocal about the organizational performance effects of customer relationship management (CRM) technology use, with some studies reporting positive effects and other studies reporting no effects at all. The present research effort posits that these mixed findings may potentially be explained by two factors:

  1. CRM technology use may have different effects on different customers, and (2) different CRM tools may have different performance consequences. This study investigates this possibility by building on relationship marketing and management theory to propose and test a model of the customer- and firm-level consequences of the organizational use of CRM interaction support and customer prioritization tools. The results of data analysis of 295 customer firms nested within 10 provider firms reveal that firm use of CRM interaction support tools is positively related to customers' relationship perceptions, regardless of customer account size. In contrast, the data indicate that use of CRM prioritization tools appears to have positive effects on a firm's larger customers and negative effects on smaller customers. The results also suggest that when considered at an aggregate level, customer perceptions of the exchange relationship are predictive of organizational performance and that the association between these two variables is significant for larger customer accounts but insignificant for smaller accounts. Overall, the study's results help explain some of the inconsistent findings reported in the literature regarding the performance implications of CRM technology use and suggest that use of the technology may serve to enhance organizational performance, at least over the short term.

    Keywords- Definition,CRM in the IT industry, Benefits

    DEFINITION:

    CRM is an acronym that stands for Customer Relationship Management. It describes the strategy that a company uses to handle customer interactions. One example of a common CRM strategy is the rewards card program offered by many supermarkets. The store gives its customers a free card that

    gives them access to special deals and discounts when they swipe the card during checkout. But that Once a company has collected information about a customer, the next step is training its salespeople and other employees in using that information to keep the customer relationship strong. Because salespeople are often the 'face' of the company, theirs is an important role in any CRM program. Frequently a customer who runs into a technical problem will phone her salesperson instead of calling up the customer service team. She already knows her salesperson and probably has good feelings about him, or she wouldn't have bought the product from him. It's safer and easier to reach out to someone she knows than to try to explain her problems to a stranger. So even after the sale is complete, salespeople often continue to speak with customers on a regular basis.

    These customer interactions can be a burden for a salesperson, but they can also bring a blessing in the form of future sales. When a salesperson helps his customer overcome a difficult problem, it's much more likely that she'll get in touch with him for future purchases. And there's also a good chance that she'll send her friends and family to him as well. And this is exactly what a customer relationship management system is trying to accomplish. It's critical that the sales team understands and implements its company's CRM strategy.

    For this reason, the sales manager should make a point of keeping on top of the company's CRM strategy and should pass along any changes to the sales team immediately. She should also counsel her team on how to build and maintain a good customer relationship. Most salespeople are happy to do so once the fruits of this labor start rolling in in the form of additional sales.

    CRM IN THE IT INDUSTRY

    Competent consultation, excellent support and project managers that meet their deadlines and maintain their budget these key factors are essential for gaining a competitive edge in the IT industry.

    Your CRM software requirements

    • Manage projects efficiently.

    • Departments and project teams work in one network.

    • Impress your customers with competent service.

      The benefits

    • CRM software provides support in all project phases. The highest levels of transparency are realized by planning and controlling projects in a well-organized manner. A CRM solution manages and records all of your resources and time.

    • Your service employees always have access to all your customer data. Which product does the customer use? Which service agreement has been signed? You can find all the answers to these questions in the CRM software. So that employees are always informed about the extent of services available.

    • The CAS IT Services industry solution has been developed to meet the requirements of IT companies: from IT service providers who focus on consulting and service to software providers who sell products with marketing campaigns.

    • CAS IT Services is tailored to the specific requirements of the IT industry sector. This flexible industry solution helps you manage customer information throughout your c ompany. CAS IT Services is based on CAS genesis World, the award-winning, leading CRM solution for small and medium-sized enterprises.

    • Efficient sales processes

      Keep track of your business opportunities to make the most of potential sales. With opportunities, you can manage leads: from the initial contact to the closure of the sale. The automatic notification and action service keeps you informed about events like birthdays, changed appointments or escalations. Not only that but you can also create forecasts and reports on sales potential at the touch of a button.

    • Precisely targeted marketing campaigns

      Multi-phase campaigns are easily planned and implemented. You can, for example, filter by customers that have service agreements and make

      the most of cross selling potential. With this solution all your customers' responses are automatically stored and you can forward leads directly to the sales department and generate turnover figures. The smart analysis feature enables you to find out instantly how effective a campaign was.

    • Planning and managing projects

      Benefit from an effective system for planning and controlling your projects. All this means you can plan and structure your projects precisely. Include risks, phases, milestones and targets, tasks, resources, budgets, costs and times right from the start. The project status, ad-hoc analyses and an early warning system allow you to keep your projects well on track at all times.

    • Project controlling

      Assigning working hours to projects is the foundation of effective project management accounting. CAS IT Services has a smart time recording feature – both for customers and for projects – which records, for example, hourly rates, estimate-to-complete figures, the time remaining, the budget, and material and external costs.

    • Helpdesk for maximum efficiency

      Service requests are organized transparently: A trouble ticket system records error reports, controls who is processing the task, informs the sales department and allows customers to keep track of their error reports on the Internet. Automatic recording of the processing time and the resources used allow you to remain in full control of your costs. Create analyses for departments or individual customers with just one click. In this way, you are always informed about your customer's service entitlements.

      CRM IN BUSINESS-TO-BUSINESS (B2B) MARKET

      The modern environment requires one business to interact with another via the web. According to a Sweeney Group definition, CRM is all the tools, technologies and procedures to manage, improve, or facilitate sales, support and related interactions with customers, prospects, and business partners throughout the enterprise.[11] It assumes that CRM is involved in every B2B transaction.[7]

      Despite the general notion that CRM systems were created for the customer-centric businesses, they can also be applied to B2B environments to streamline and improve customer management conditions. B2C and B2B CRM systems are not created equally and different CRM software applies to B2B and Business-to-Customer (B2C)

      conditions. B2B relationships usually have longer maturity times than B2C relationships. For the best level of CRM operation in a B2B environment, the software must be personalized and delivered at individual levels.[12]

      Differences between CRM for Business to Business (B2B) and Business to Customers (B2C)

      B2B and B2C marketing operates differently, and that is why they cannot use the same software. All the differences are focused on the approach of these two types of businesses:

    • B2B companies have smaller contact databases than B2C.

    • The amount of sales in B2B is relatively small.

    • In B2B there are less figure propositions, but in some cases they cost a lot more than B2C items.

    • Relationships in B2B environment are built over a longer period of time.

    • B2B CRM must be easily integrated with products from other companies. Such integration enables the creation of forecasts about customer behavior based on their buying history, bills, business success, etc.

    • An application for a B2B company must have a function to connect all the contacts, processes and deals among the customers segment and then prepare a paper.

    • Automation of sales process is an important requirement for B2B products. It should effectively manage the deal and progress it through all the phases towards signing.

    • A crucial point is personalization. It helps the B2B company to create and maintain strong and long- lasting relationship with the customer. To help the company communicate with their clients more effectively, there should be integration with the company's email system.

SAAS CRM SOFTWARE

Often referred to as "on-demand" software, SaaS based software is delivered via the Internet and does not require installation on your computer. Instead, you'll generally access the software via your web browser. Businesses using the software do not purchase the software, but typically pay a recurring subscription fee to the software vendor.[13]

SMALL BUSINESS

For small businesses a CRM system may simply consist of a contact manager system which integrates emails, documents, jobs, faxes, and scheduling for individual accounts.[citation needed] CRM systems available for specific markets (legal, finance) frequently focus on event management and

relationship tracking as opposed to financial return on investment (ROI).

SOCIAL MEDIA

CRM often makes use of social media to build up customer relationships. Some CRM systems integrate social media sites like Twitter, LinkedIn and Facebook to track and communicate with customers sharing their opinions and experiences with a company, products and services.[14] Enterprise Feedback Management software platforms such as Confirmit, Medallia, and Satmetrix combine internal survey data with trends identified through social media to allow businesses to make more accurate decisions on which products to supply.[15]

NON-PROFIT AND MEMBERSHIP-BASED

Systems for non-profit and also membership-based organizations help track constituents, fund-raising, Sponsors demographics, membership levels, membership directories, volunteering and communication with individuals.[citation needed]

Customer-centric relationship management (CCRM)

CCRM is a style of customer relationship management that focuses on customer preferences instead of customer leverage. This is a nascent sub-discipline of traditional customer relationship management; to take advantage of changes in communications technology.

Customer centric organizations help customers make better decisions and it also helps drive profitability. CCRM adds value by engaging customers in individual, interactive relationships.[16]

Customer-centricity differs from client-centricity in that the latter refers almost exclusively to business-to- business models rather than customer-facing firms.

TRENDS IN CRM

In the Gartner CRM Summit 2010 challenges like "System tries to capture data from social networking traffic like Twitter, handles Facebook page addresses or other online social networking sites" were discussed and solutions were provided which would help in bringing more clientele.[28] Many CRM vendors offer subscription-based web tools (cloud computing) and software as a service (SaaS). Some CRM systems are equipped with mobile capabilities, making information accessible to remote sales staff.[citation needed] Salesforce.com was the first company to provide enterprise applications through a web browser, and has maintained its leadership position.[29] Traditional providers have recently moved into the cloud-based market via

acquisitions of smaller providers: Oracle purchased RightNow in October 2011 and SAP acquired Success Factors in December 2011.

The era of the "social customer"[32] refers to the use of social media (Twitter, Facebook, LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews in Amazon, etc.) by customers. CR philosophy and strategy has shifted to encompass social networks and user communities.

Sales forces also play an important role in CRM, as maximizing sales effectiveness and increasing sales productivity is a driving force behind the adoption of CRM. Empowering sales managers was listed as one of the top 5 CRM trends in 2013.[33]

Another related development is vendor relationship management (VRM), which provide tools and services that allow customers to manage their individual relationship with vendors. VRM development has grown out of efforts by ProjectVRM at Harvard's Berkman Center for Internet & Society and Identity Commons' Internet Identity Workshops, as well as by a growing number of startups and established companies. VRM was the subject of a cover story in the May 2010 issue of CRM Magazine.

In 2001, Doug Laney developed the concept and coined the term 'Extended Relationship Management' (XRM). Laney defines XRM as extending CRM disciplines to secondary allies such as the government, press and industry consortia.

CRM futurist Dennison DeGregor describes a shift from 'push CRM' toward a 'customer transparency' (CT) model, due to the increased proliferation of channels, devices, and social media.

CONCLUSION

CRM software can help by storing all this information in an easy-access format. With a typical CRM program, new leads are entered into the program's database and salespeople add notes throughout the sales cycle. It's then easy for a company to compile reports from this data that help it to design a CRM strategy that's tailored to its customers. The CRM software can alsoautomatically send

out emails to individual customers as designated by the salesperson. For example, a salesperson might program his CRM to send out a thank-you message whenever a customer reaches his or her one-year anniversary of purchase, or to send an e-card on the customer's birthday.

REFERENCES

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  7. Yun E. Zeng, H. Joseph Wen, David C. Yen, "Customer relationship management (CRM) in business-to-business (B2B) e- commerce", Emerald 11, (2003).

  8. Piskar F., Faganel A. (2009). A successful CRM Implementation Project in a Service Company: Case Study. Organizacija, Vol: 42, pp. 199-208

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  11. Davenport, T.H., Harris, J.G., Kohli, A.K. (2001), "How do they know their customers so well?", MIT Sloan Management Review, Vol. 42 No.2, pp.63-73.

  12. Rebekah Henderson, B2B Insights (2013) How to build a B2B- friendly CRM

  13. Cloud Taxonomy CRM Software as a Service

  14. DestinationCRM.com (2009) Who Owns the Social Customer?

  15. Lester, Aaron (2013-04-23). "Seeking treasure from social media tracking? Follow the customer". SearchBusinessAnalytics. Retrieved 2013-10-01.

  16. Its all about the Customer, Stupid The Importance of Customer Centric Partners

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