CRM Approach:
Name:
Institutional Affiliation:
CRM Approach
Customer relationship management is an important tool when it comes to the management of interactions of a firm with both its current and future customers. It makes use of technology in automating, and synchronizing a firm’s sales, customer service, marketing and technical support. A firm needs to choose a CRM solution that fits its specific organizational needs.
There are some client privacy issues that impact the use of CRM solutions as they expect high degree of privacy. One of these is that a firm may in some cases try to sell privileged client information to a marketer (Josiassen, Assaf & Cvelbar, 2014). In doing this, the firm risks losing such customers. The CRM software in use needs to be able to guarantee customers of their privacy. Another major privacy issue impacting customer CRM use is government regulations (Raman & Pashupati, 2004). The government has put in place laws to govern the protection of customer data and as a result limiting the flexibility of CRM use in terms of privacy.
The CRM system approach brings with it immense benefits. One of these is that it promotes efficient time management among the staff of a firm as it prompts those using it to make a follow up on various activities sending automated alerts whenever important actions take place (Pries 2004). In addition, marketing brings with it leads that are of higher quality through continued improvement of contact segmentation and campaigns that are targeted. It also brings with it trusted pipeline reports and used as the main basis for achieving reliable production and sales forecasts in order to improve on efficiency, and achieve predictable management of cash.
The CRM approach suggested offers better outcomes compared to other approaches due to the efficiency that it brings with it. It offers a faster alternative when it comes to decision making at the management level compared to other approaches that I have come across. There are also better regulations guiding its use, which increases customer confidence and trust in it. For this reason, reports emanating from its use are more trustworthy.
The approach can be applied to my organization in several ways. As a bank, it can use the CRM to strengthen the kind of relationship it has with its customers. With this, customers will be able to learn about the firm’s diaries, calendar and service schedules giving my organization a clearer picture of its activities. It can also help in minimizing customer churn by delivering quality service to clients.
What I liked most about the approach is the kind of information relating to the consumer that it can help in acquiring. It enables a firm to serve its consumers better as it provides a more personalized approach when it comes to dealing with consumers and handling their needs. However, the approach does not satisfactorily address the issue of customer privacy. Customer privacy is always a top concern and the firm needs to prioritize it.
Clearly, a firm needs to choose a CRM solution that fits its specific organizational needs. There are privacy issues surrounding the use of CRM that need proper handling in applying the CRM approach in organizations. With proper use, the approach brings with it immense benefits that one cannot ignore. It is an approach that can be of great help to my organization enabling it to achieve greater efficiency. However, there is need to pay greater attention to the privacy issues surrounding the CRM approach to assure customers of the security of their information.
References
Josiassen, A., Assaf, A. G., & Cvelbar, L. K. (2014). CRM and the bottom line: Do all CRM dimensions affect firm performance?. International Journal of Hospitality Management, 36, 130-136.
Pries, C. (2004). Managing CRM implementation with consultants—CRM or change management?. Journal of Change Management, 4(4), 351-370.
Raman, P., & Pashupati, K. (2004). Is CRM Really Doomed to Fail? An Exploratory Study of the Barriers to CRM Implementation. Journal of Customer Behaviour, 3(1), 5-26.
