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Oct 24,  · At its core, customer relationship management (CRM) is all of the activities, strategies and technologies that companies use to manage their interactions with their current and potential h-mm-reviewss.ml: Jason Kulpa. Customer Relationship Management is an upright concept or strategy to solidify relations with customers and at the same time reducing cost and enhancing productivity and profitability in business. An ideal CRM system is a centralized collection all data sources under an organization and provides an atomistic real time vision of customer. Before you pull the trigger on upgrading your customer relationship management software, make sure you're investing in a system that will work for the business you run today. Tyler King | 6 min.


Customer Relationship Management - Articles | Clickatell


The aim of this study is to explain the impact of Web site characteristics on the relation between customer relationship management CRM and customer loyalty. Data collected from Canadian IT organizations showed that Web site characteristics which include the levels of the organizations' Internet presence and interactivity have a significant impact on the link between CRM in terms of partnerships, empowerment, relations with customers, and personalizationand customer loyalty.

However, the impact of Web site characteristics on the link between CRM, in terms of understanding customer expectations, customer prospecting, customer relationship management articles, and interactive management, and customer loyalty has not been tested because the direct link between these three components of CRM and customer loyalty has not been significant in this study. The managerial and theoretical implications of these results are discussed.

As the new millennium progresses, the business world is focusing more attention on issues concerning electronic commerce Teo et al. The impact of the Internet has made a substantial difference in business-to-business B2B transactions Teo et al. Such predictions indicate the importance of the Internet as a way of supporting business activities Porter, Some organizations have invested in customer relationship management articles Web — often with the objective of using it as a way to maximize resources McMillan, Recent developments in Internet technology have given the Internet a new role: to facilitate the link between CRM and customer loyalty.

There is a little existing research that has empirically tested the impact of the Internet on CRM which leads to customer loyalty.

The degree to which the Internet is used by organizations and the considerable praise that it has received may be attributed to its enhanced informational and interactive communication capabilities. This article consists of two main parts. First, a conceptual model explaining the theoretical link between CRM and customer loyalty will be presented customer relationship management articles explored.

The impact of Web site characteristics on the link between CRM and customer loyalty will also be explained. The second part of this article will explain the results of an empirical study conducted to test the impact of Web site characteristics on the link between business-to-business relationship management and customer loyalty customer relationship management articles the IT sector.

Business-to-business relationship management or CRM has been chosen because business-to-business electronic commerce is more profitable for companies than business-to-consumer electronic commerce Forrester Research, customer relationship management articles, The impact of the Internet is well known in business-to-consumer transactions: witness the proliferation of Web sites for facilitating sales and services across a broad range of offerings.

However, a revolution is occurring in business-to-business relationships as companies restructure their operations with trading customer relationship management articles Venkatraman, The IT sector has been chosen because, according to Datamonitormore products hardware and software from this sector are sold online or through the Internet on a business-to-business basis than from any other sectors. Towards the end of the article, the managerial implications of the study will be considered.

There is a considerable body of literature concerning CRM, which covers a number of different components. CRM is organized as a series of events. These are clustered together according to types of action that constitute the extent of CRM in the context of this study.

The extent of CRM comprises independent variables presented in the conceptual model. The seven major CRM components identified are: 1 customer prospecting, 2 relations with customers, 3 interactive management, 4 understanding customer expectations, customer relationship management articles, 5 empowerment, 6 partnerships, and 7 personalization. These components are discussed below. Many firms have developed databases that contain detailed interaction data on prospects as well as customers Thomas, In the process described by Paynethe concept of CRM is understood in terms of a loyalty scale leading from the customer prospect, through customer, client, and supporter, to customer relationship management articles. According to Paynecustomer relationship management articles, customer prospecting plays a key role at the beginning of the CRM process.

Thomas has examined a methodology for linking customer acquisition to customer retention. He found that customer acquisition and retention are not independent processes, customer relationship management articles.

Using the model described in his study, Thomas shows the financial impacts of not accounting for the effect of acquisitions on customer retention. The concept of relations with customers also relates, according to the literature, to customer loyalty.

Chow and Holdenfor example, estimate that firms are oriented towards the benefits that can be reaped from the construction of customer loyalty. In addition, these authors specify that there has been a paradigmatic change so that the relationship with the customer is now seen as the unit of value.

Interactive management is a key aspect of CRM functions Gronroos, customer relationship management articles, Reichheld reports that he has yet to encounter a company that has achieved extremely high customer loyalty without fostering similarly high loyalty among employees. Payne puts partnering at the extreme end of his loyalty scale, regarding it as an important step that usually leads to the development of a close and durable relationship between supplier and customer.

Wilson has developed an integrated model devoted to the explanation of CRM process phases. In this model, partner selection is considered to be the first step in the CRM process.

Personalization refers to the extent to which a firm assigns one business representative to each customer and develops or prepares specific products for specific customers. Personalization is about selecting or filtering customer relationship management articles for a company by using information about the customer profile Schubert, A major component of personalization is the distribution of customized mail to a customer or customization of the relationship between firm and customer.

This concept outlines a clear distinction, established by Gronroosbetween CRM and the management mix. The latter is customer relationship management articles far more clinical approach in which the seller, or business representative, plays an active role, while the buyer, or customer, takes up a more passive position. In such a scenario, customer relationship management articles, there is no personalized relationship between customer and business representative.

Personalization, rather, is only included in CRM. The development of loyalty involves building and sustaining a relationship with a customer, which leads to the repeated purchase of products or services over a given period of time. Customers can demonstrate their loyalty in several ways. For the purposes of this research, loyalty will be considered as the final result, or the key element, of effective CRM.

They have merely specified that their concept of loyalty went beyond the idea of industrial loyalty. One of the more widespread electronic commerce approaches is the digital storefront, i. After using the theory of modular design to explain the concept of Web site characteristics, Iyer et al. Based on previous published work, they defined a business network as a distinct system of participants that use the network to achieve customer satisfaction and profitability and where relationships evolve over time.

Web technologies are complex and offer a variety of functionalities ranging from the static presentation of content to the dynamic capture of transactions with provisions for personalization [ Chatterjee et al.

There are essentially two variables that encompass the construct of Web site characteristics: the level of presence on the Internet, and the level of interactivity on the Internet. In addition, presence on the Internet encompasses the concept of virtual information space as described by Angehrn This latter concept consists of the new Internet-based channels through which economic agents can display information about themselves and the products and services they offer.

Essentially, the level of presence on the Internet refers to the virtual presence of firms and their offerings. Two major aspects distinguishing the Internet from other communication media are the opportunities for two-way interaction, and the capacity for multimedia.

A virtual communication space, as defined by Angehrnwill be incorporated in our definition of the level of interactivity on the Internet, as it is an extension of the traditional spaces economic agents use to meet, interact, customer relationship management articles, exchange valuable ideas and experiences, influence opinions, negotiate potential collaborations, engage in relationships, and create communities.

Therefore, customer relationship management articles, the level of interactivity on the Internet refers to the extent to which organizations engage in online communication without being affected by distance and time constraints. The choices that have been made regarding the content of each construct, and the arguments used to support them, have led to the redesigning and redefining of the research model above.

In the research model, the extent of CRM variables has a direct impact on the customer loyalty variable. The use of Web site characteristics to strengthen existing CRM can increase businesses' loyalty to each other. The Web site characteristics such as the level of presence on the Internet and the level of interactivity on the Internet can support customer relationship management articles formation and maintenance of CRM because they facilitate the way organizations understand customer expectations, partner, build relations with customers, interact, empower and personalize to create loyal customers.

Therefore, we expect: 1 the extent of CRM variables to have a positive impact on customer loyalty; 2 the level of presence on the Internet to have a positive impact on the link between the extent of CRM variables and customer loyalty; 3 the level of interactivity on the Internet to have a positive impact on the link between the extent of CRM variables and customer loyalty.

Our theoretical argument, customer relationship management articles, explained in the previous literature review and model, enables us to posit the following hypotheses:. H1 a, b, c, d, e, f, and g : The greater the extent of the CRM components partnerships, relations with customers, customer prospecting, customer relationship management articles, interactive management, empowerment, understanding customer expectations, and personalization the greater the positive and direct effect on customer loyalty.

H2 a, b, c, d, e, f, and g : The level of presence on the Internet customer relationship management articles be positively associated with the link between the extent of the CRM components partnerships, customer relationship management articles with customers, customer prospecting, interactive management, empowerment, understanding customer expectations, and personalization and customer loyalty. H3 a, b, c, d, e, f, and g : The level of interactivity on the Internet will be positively associated with the link between the extent of the CRM components partnerships, relations with customers, customer prospecting, interactive management, empowerment, understanding customer expectations, and personalization and customer loyalty.

Because scales were not available for all of the variables described customer relationship management articles the conceptual model, certain measures had to be developed customer relationship management articles to the guidelines suggested by Churchill An evaluation grid was used to measure Web sites characteristic variables, and was mounted according to the guidelines by Kassarjian In order to follow the guidelines suggested by Churchillan exploratory study based on multiple cases studies was conducted.

The results of these multiple case studies enabled us to refine the measures previously described in the literature review. In total, eight companies, which belong to the IT sector in Quebec Province of Canadacustomer relationship management articles, were asked to participate.

The managers of these companies were interviewed for one hour, and recorded on tape. Content analysis was conducted to analyze and process the data from the interviews. To help conduct the interviews, an interview protocol was used. Our refined questionnaires were extensively reviewed and evaluated, both by practitioners the managers and directors of the IT companies and by academics, customer relationship management articles.

Based on these evaluations, corrections and improvements were customer relationship management articles which were included in the measurement instrument. The questionnaires were sent electronically to the executive directors of small, medium, customer relationship management articles large IT companies in Canada.

This response rate was similar to that obtained in other studies which used similar survey procedures. A Web page devoted to the questionnaire was set up and electronic cover letters were forwarded to respondents inviting them to visit the Web site in order to fill out the electronic questionnaire form. The responses were sent electronically to the researchers.

The measures used in this study were statistically validated. SPSS software was used to assess the reliability and the validity of the measures in the exploratory phase.

This technique allows the interpretation of the relevant factors and it is also the most used rotation technique in research Norusis, The criterion used in the reliability assessment was Cronbach's alpha. The results obtained from this first analysis are presented in Table 1a. The items that were rejected due to poor loading, customer relationship management articles, after the reliability assessment and PCA, are presented in Table 1b and Table 2b.

Item definitions are provided in the Appendix. The rest of the methodology deals with confirmatory analysis. The results of this analysis are presented in Table 3. The far customer relationship management articles column on Table 3 shows the convergent validity assessment for each factor. We noticed that all convergent validity coefficients calculated for all factors in this study were higher than or equal to 0.

The first column on Table 3 shows the reliability of each measure, which is the Rho coefficient. These guidelines estimate that acceptable reliability coefficients must be higher than 0.

All Rho coefficients range between 0. These values are considered very satisfactory.

 

Council Post: Why Is Customer Relationship Management So Important?

 

customer relationship management articles

 

Before you pull the trigger on upgrading your customer relationship management software, make sure you're investing in a system that will work for the business you run today. Tyler King | 6 min. Sep 19,  · View Clickatell's Customer Relationship Management Articles highlighting industry news, developments and trends - Chatbots, CRM strategies, 2 Way SMS. Oct 24,  · At its core, customer relationship management (CRM) is all of the activities, strategies and technologies that companies use to manage their interactions with their current and potential h-mm-reviewss.ml: Jason Kulpa.