Essay
OE102 Customer Insight Tooling
- Course
- Institution
Essay of 68 pages for the course OE102 Customer Insight Tooling at InHolland (x)
[Show more]
1 review
By: marioisepceu • 2 year ago
Seller
Follow
heerkelvin
Reviews received
Content preview
CUSTOMER INSIGHT TOOLINGOE:102
KELVIN DE HEER
LECTURER: RENE ARENDS
CLASS: ROBSMA4
DATE: 20-12-2019
STUDENT NUMBER: 580932
, CHAPTER 0: CRM
PART B
Assignment 1 Reading
Read:
1) A review of customer relationship management: successes, advances, pitfalls and futures
(Nguyen and Mutum): COMPLETED
2) A strategic framework for CRM (Payne and Frow): COMPLETED
3) Customer Relationship Management (Ed Peelen): COMPLETED
Assignment 2 Summarizing
Nguyen and Mutum
CRM or Customer Relationship management. This is a process to help optimize the
relationship between customers, to retain them and to help maximize the profit of the
customers. CRM has many benefits from new technologies, data collection methods, buyer
personas and loyalty programs. As a matter of fact, is retaining the customer with CRM safes
companies about 20x more money than attracting new customers.
Nguyen and Mutum wrote down several KPI’s, advantages of CRM, the future and pitfalls
about Customer Relationship Management. CRM is built around the customer and is focused
on the customers point of view in a strategical and technological way. The successes of
implementing a successful CRM system is that it has to increase a company’s profitability.
When they succeed with this the company can satisfy the customer needs, in order to
remain their loyalty. CRM helps companies to enhance performance by enabling them to
focus of selective segments and buyer personas. CRM provides a good framework for
achieving coordination between quality programs and marketing.
An advantage is that companies learn about their customer needs. The individual needs on a
one to one basis to create different marketing strategies. By doing this companies are able
to center attention to acquiring the perfect customers, instead of doing all sorts of
marketing campaigns. For the future CRM holds company possibilities to use methods to
understand customers through brain activity or eye movement, they call this
neuromarketing, which is in experimental phase at this moment of time. Retail companies
will be able use this in an effective way.
Also, there are many pitfalls with implementing CRM to the company. When it is
implemented in a wrong way or not considering favoritisms. Building customer relations is
very complex since customers are demanding. The CRM paradox is also a big pitfall.
The future of CRM is about focusing on collecting, storing and utilizing the information about
the customer. This is called big data; this provides a lot of information about customers. The
CRM system creates a better view of this big data by forming the better buyer personas.
,Technological advancements such as social media and mobile technologies to interact with
customers will be a promising development. In this way companies can interact even more
with their customers to create the best relationship possible.
Payne and Frow
This article is about a research to form a clearer description about what CRM is. Which is a
method that offers technology-based customer solutions. This enables relationship
marketing. However, there is a great confusion about what CRM now actually is. In this
article they looked at it in a technical way. Where they described CRM as: ‘’CRM is a
strategic approach that is concerned with creating improved shareholder value through the
development of appropriate relationships with key customers and customer segments. It
unites the potential of relationship marketing strategies and IT to create profitable, long
term relationships with customers and other key stakeholders. Requires a cross functional
integration of processes, people, operations and marketing capabilities that is enabled
through information, technology and applications. ‘’
For CRM, they have to set up a strategic framework. To set up this framework they need to
take into account: previous literature, common sense and experience. CRM is divided in
multiple processes: strategy, development process, the value creation process, the
multichannel integration process, the information management process and the
performance assessment process. It involves collecting and intelligently using customer data
to build a consistently and superior customer experience.
One of the most important processes is the multichannel process. In this process they put
out the business strategy and the value creation translate it to value adding activities. It
focuses on decisions about appropriate combination of channels.
The information management process is about the collection and use of customer data at
the touch points of the customers. This data is saved and provides a memory of customers
to create buyer personas. They make sure the data is saved because it provides a memory of
customers which is able to create buyer personas. Analytic tools that enable effective use of
this data can be data mining packages. Applications like SEA can support the activites that
involve direct contact with customers.
The performance assessment process covers the task of ensuring the strategic aims are met.
The results of the shareholders prove a macro view of the overall relationships that drive
performance. To achieve this objective the results should be enabled by companies to
consider the effects of CRM in a strategic level.
, Comparing the articles
In the first article the focus is on that CRM is built around the customer, its interactions with
the company, how to maintain this and how to create a profit from this. It is a sideways
relationship where not just the company must benefit but also the customer. In the second
article they temper this idea by saying in order to succeed in a CRM project, not only you
must view a CRM from the customer point of view but also strategically as a technology
solution, and as a technology tool. This means CRM needs to be addressed as a Sales Force
Automation with a set of internet tools.
Contrasting the articles
Both the articles conclude by acknowledging that CRM is the future of marketing, which is
resting on the capability to create value sideways. From the point of view of the customer
and the company: a successful CRM system relies on the sincerity of the relationship.
Marketeers have to start integrating the challenges of the future like social media
development.
Pane and Frow did go deeper in the understanding of CRM by conducting a deep research in
order to develop a strategic framework. They retained five important processes:
- The strategy development process
- The value creation process
- The multichannel integration processes
- The information management process
- The performance assessment process
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller heerkelvin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.96. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now