Research Paper on "Future of CRM"

Research Paper 7 pages (2279 words) Sources: 7

[EXCERPT] . . . .

Future of CRM -- Introduction

Impact of social media and utilization of the Internet on CRM

Successful customer loyalty program

Future trends in multi-channel approaches

Consumer demographics and behaviors along with the resulting influence customer relationship development

Amazon.com: a successful customer relationship-marketing program

The customer is the most important element in the business as he provides the organization with a ready market for its products. Organizations that are dependent on customers should maintain favorable relationship with customers at all times with its customers. The concept of customer relationship management refers to the model where a company manages its interactions with the customers. The concept ensures professional treatment to prospective customers, clients and loyal customers to establish and maintain strong bonds with the company. Customer relationship management involves the use of technology to manage, automate and harmonize operations in the organization. Sales activities are the focus of the concept although the marketing, customer care and technical support department also benefit from the concept. The main aim of implementing and maintaining a customer relationship management in any organization is to attract new customers, maintain a loyal following and attract back old customers. The concept involves all departments in the organization especially departments that interact directly with customers (Peel, 2003).

Impact of social media and utilization of the Internet on CRM

The use of technology in customer relationship management has improved the way the organization communicates with the customers. The internet has created a platform that the organization can use to communicate with customers. The use of the internet can be in form of websites, forums or social media. The organization can provide large volumes of information to its clients through the internet compared to conventional methods such as magazines. The use of internet has revolutionized customer relationship management due to the convenience that is associated with the internet. The organization can address issues that directly affect the clients. The clients benefit by getting information directly from the organization. A company representative with adequate information regarding the products sold by the company controls the website (Goldenberg, 2003).

The use of the internet to provide information to the customers ensures that the customers' access updated information. The use of the internet enables the organization to conduct regular updates unlike the use of print media that requires the organization to print another magazine when some functions of the organization change. The use of the internet has a high initial cost but a low operating cost to the organization. The use of the internet thus provides a cheap way for the company to communicate with its customers. For a large organization with global outlets, the use of the internet is the most convenient way to reach customers. An organization with a global customer base uses the internet through a website. The organization can provide technical support to its customers and even make sales through the website.

Social media and mainly tweeter and facebook have revolutionized the field of communication. Organizations have joined social media as a way of interacting directly with the customers. Organizations train some staff members on how to interact with customers professionally. The use of social media has enabled organization to increase their market base through providing quality information to its clients. The use of the internet and social media has enabled the organization to improve the product sold by the organization. Through social forums, clients are able to comment of the satisfaction derived from the products and features that they would want to improve on the products. The use of the internet has also enabled the organization to give news to the customers. A change to a product or introduction of a product in the market requires the use of the internet (Goldenberg, 2008).

The use of the internet and social media does not always yield positive results. Misuse of the tools in customer relations management may result to lowering of sales and loss of customers. Nestle is one of the companies that suffered from unprofessional use of social media in customer relations management. The use of the internet also exposes the organization to data loss and privacy concerns due to hackers. The organization using internet and social media to relate to it customer needs a staff that is adequately trained. There is also a need to educate the public on the advantages of using this customer relationship management tools.

CRM blueprint

Successful customer loyalty program

A loyalty program is enables the organization to understand customers inclinations and expenditure habits while monitoring, supporting and providing incentives for the behaviors that are considered desirable. Many businesses have turned to the use of reward systems to enable their organization to have a competitive advantage over other players in the market. The use of a loyalty program enables the organization to build a promotion that booms each customer. The use of loyalty programs also enables the organization to increase revenue due to strong relationships build with the customers. The organization is able to differentiate itself from other companies in the market and to ensure that the brand awareness (Kostojohn, Johnson & Paulen, 2011).

Some organizations offer discounts as part of their loyalty program. This is not a good element of a loyalty program. Giving discounts to all customers increases the number of customers that visit the business but does not instill loyalty to the customers. A successful loyalty program targets a group of customers to the organization. This precision offer allows the organization to identify and reward loyal customers to the organization. The organization running a loyalty program should ensure that the target group would enable the organization to increase its revenue by maintaining a stable client base.

A successful loyalty program should also be honest and transparent promotions. The clients should be able to realize the advantages of being in a group of customers. The organization should ensure that the program is transparent and free from fraud. The management should ensure that all the customers understand the loyalty program. All information regarding the promotion, the customers should be aware to ensure that the customers make an informed decision. Hidden information or charges to the loyalty program may affect its integrity thus deter customers. An honest loyalty program enables the organization to market its brand as customers spread the word (Finnegan & Willcocks, 2007).

Customers should be able to evaluate the value associated with a reward program. The customers should be able to realize the advantages of joining a loyalty program compared to other customers. Investing in a loyalty plan should have more advantages compared to the services a regular customer services. Most of the successful loyalty programs have a monetary value that allows the customer to save on his purchases. The value of a loyalty program is also associated with the feeling of recognition. The customer needs to feel appreciated to participate in a loyalty.

Future multi-channel methods to connect with customers

A successful loyalty plan needs structuring in a way that the reward is attainable. The reward should be obtainable to motivate the customers to join the reward program. Easy goals maintain customer's loyalty and as status increases excitement increases. The customers should be able to discuss the benefits derived from a loyalty program. The interaction between customers increase brand awareness thus increase sales of an organization. A successful loyalty program enables the organization to formulate new products that cater for the needs of the customers. The program should ensure that the number of customers increases and thus the revenue generated.

Companies in the future will have access to multi-channel approaches to customer relationship management. Organizations in the future will be able to use e-CRM to interact with customers improving their competitiveness in the market and providing customers with quality products. In the future, technologies that have not been widely used in the field of e-CRM will apply. Such devices include mobile phones PDA's among other wireless devices. The devices will improve and maintain the relationship between the customers and organization. Some organizations have already embraced these technologies to improve their relations with customers. The use of text messaging is common among many organizations as the management tries to communicate with customers. The use of text messages aims at ensuring the customers are informed thus developing loyalty and satisfaction (Finnegan & Willcocks, 2007).

Current marketing trends aim at including multi-channel communications athwart various platforms delivering the same message. Television episodes are products where customers can communicate to the producers through text messages. Episodes with music videos where the customers can send their requests followed by a short message is one of its applications. The message displayed on the episode in real time and charged above the normal rates enable the organization to cover its costs and promote the its relationship with customers. Some television stations also have websites where the view can blog about the episodes watched. This enables the customers to interact with fellow customers and the producers of the show. The future of multi-channel CRM lies in the use of different… READ MORE

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