Abstract
The success of a business is directly proportional to the relationship that exists between the business and the factors that shape its market. Each strategy undertaken by a business to is geared towards changing the perceptions of its customers. Additionally, there is a need to allure more customers into buying products or rather using their services. In this context, customer relationship management system is a strategic tool employed by objectively oriented organizations. How a business attains this is dependent on the number and nature of manipulative fronts it utilizes. Additionally, studies of divergent business situations depict how customer relationships with respective businesses determine success. A number of case studies will most probably confirm this relationship. As a result of this trend, there exists a tendency that culminates in the contemporary business society in the form of pressure. Each business has to understand the underlying factors that make consumer relationship management systems an important factor in the perceived success of a business.
Executive Summary
Customer relationships are essential in business organizations. This is because customers are an important part of the business. Therefore, business owners must make sure that their customers are treated well by the employees. Most business owners see to it that the relationship between employees and customers is conducive for the development of business in order to achieve the company’s goals. This means that the business must come up with the best way to attract more customers and maintain them so that they don’t buy their goods and services from their competitors. Maintaining customers involve knowing what their tastes and preferences are, and achieving their required level of satisfaction. It also involves knowing what the competitors are offering to their customers and emulating it, if it is cost effective (Bowie, 2002). Many business organizations prefer creating a department that deals with customer concerns so that any uprising issues are dealt with effectively in case of any complaints that the customer may have.
A well-organized business entity should have customer relationship management system that assures customers of effective solutions to their problems whenever customers feel they are not satisfied. This system should also be able to accommodate all problems that relate to product quantity and quality. As such, most businesses insist on having a separate department that deals with customer concerns in order to attract more customers and the same time implementing ways to maintain the already existing customers (Bradley, 2002, pp. 312-345). This way the business can sell more and achieve its objectives as set by the management.
Introduction
Businesses are mainly created for the sole purpose of earning profits. For one to earn profit from the business, he/she must sell his/her products and services. Customers are important for any business be it small or large because they are the ones who create business opportunity for any business. That is why any business must make sure that its customers are satisfied in every department of the organization. Nonetheless, this does not mean that customer relationship should deal only on product quality and quantity. There is a need to also look at how customers are treated by the employees. This should also include how long the customers take to be served by the employees, how they are handled in case of disagreement during business transactions. Customers do not involve those who come to buy only, but also include those who bring materials for production to the company (Delmar & Shane, 2004, pp. 767-785). These agents should also be treated with care as they can easily withdraw their contracts that may as well affect the business in its operations since it may not be able to acquire materials for production in the right time. This means that just as any other department is important for any business organization, be it financial, personnel or planning department so is customer relation management department. This is why it is essential for every business to develop a customer relationship management system.
Definitions
Customer relationship management system is a program that deals mainly with customer attraction, maintenance, and retention. Its main objective involves recording data on customers’ behaviors when it comes to product quality, quantity, and packaging (Injazz & Karen, 2003, pp. 672-688). The system also allows the business to keep records on costumers giving them an easy time when planning for future goals. Analytical customer relationship management system deals with collecting information on consumer during operational check on the activities that goes on in the office. It includes collecting data on the activities that are carried out in the business premises, for example, the customers that complain about a product on a daily, weekly or monthly basis (Headd, 2003, pp. 2-16).
Consider a company, Digitals Company Limited that deals with manufacturing of cables. The company has been facing a number of problems concerning its customer’s behavior. Apparently, the employees and customers have not been getting along for some time, and the company’s sales have reduced considerably. The customers have been complaining about how they are treated by the employees while the employees think that the customers do not respect them since they are meant to serve them. The business must have a well-organized customer relationship system which should be able to handle problems concerned with customers (Abela & Sacconaghi, 1997, pp. 216-219). This way they would be able to solve most of the problems involving both customers and employees. The number of customers who have brought their complaints forward, say that the employees are not keen when a customer explains what he or she wants.
Many times, the customers receive what they don’t order, and this inconveniences them, as they have to come back and order again for the same product. Any business organization should also have a well-designed system which can keep data on customers, their preferences, and any other customer related issue, for instance, consider the Chinese telecom power market (see appendix). This way the company would be able to keep records on their customer and be able to meet their customers’ demands so as to be able to achieve customer satisfaction (Jones & Parker, 2005, pp. 214-230). This way the company would able to avoid problems. The customers also complain of not being able to get proper channels when they have problems. This is because the employees do not want to get fired because of their misconduct, and this has led to many unsolved customer problems. Many customers have opted for other companies to supply them with the cables, and this has affected the company so much in that its sales have reduced (Gefen & Ridings, 2002, pp. 47-69). On the other hand, employees also have complained of customers’ rudeness towards them. Most of the employees interviewed said that the customers were not easy to help as they complicated their terms and conditions of the contracts.
The business should be able to develop a customer relationship system which should be able to solve problems concerned with customers in order to avoid the issues that made it hard for the customers to help. This way the customers would not be rude to the employees so the employees would find it easy to help the employees. The employees agreed to the fact that the terms of the customers were not easy to meet and when this happened the customers opted for new companies. This has made the company look for ways in which it could solve its problems. Developing a good and appropriate customer relationship system is a sure way for any well-organized business in achieving its goals and objectives.
Another company that has been facing problems related to customers is Highlands Limited; which manufactures milk. The company has not been in good terms with their customers because their product quality and packaging. The main problem arises due to the perishable nature of the product the company manufactures, and the consumers are not happy about this (Westhead, 2003, pp. 254-267). Apparently, the customers purchase milk in large quantity that gets spoilt before they use it. The company has managed to come with a system that analyzes its products before they are dispatched to the consumers. This way the company will be able to know the products that are healthy for consumption. A well-developed customer relationship system has also been put in place to take records concerning customers their complaints and their places of residence in order to allow for proper manufacturing methods, which will make it easier for the company to produce standard products.
Problems and Solutions
A number of problems have been reported arising from the use of technologies and these include; concentration on the technology by the company until it forgets the harm the technologies do to the environment. Most business organizations dwell on the technology and what the newly acquired technology can rather than what harm it may have on the environment, and this has made many businesses have problems with environmental authorities. To solve this problem, any business entity that wishes to use a new technology in production or providing services should first make sure that the technology it is using is environmental friendly. This will eliminate any cases of pollution are eliminated. Use of technologies can also lead to increased prices of goods and services especially if they are new an expensive. When prices increase customers reduce their expenditure, therefore, reducing the sales of the business (Headd, 2003). To avoid, this system developers should come up with technologies that are cost effective and easy to use. This way the customers and producers will be able to exist.
Future Directions
Technology has made it easier for both customers and business owners to interact easily. Due to the development in technology, customers can order for goods and services online without necessarily going to the business premises (Romano & Fjermestad, 2001, pp. 61-72). This has enabled customers to reduce the cost on transport and reducing time wastage for when customers queue to order goods and services. Business owners and customers can also chat online on issues concerning sales and purchasing, customer preferences and on how goods can be delivered to them.
Business managers should also be aware of existing communication systems that ease their duties. Using channels of communication like emails and fax are effective for business operations as they are cheaper, effective and time saving to businesses. For example, in a case where a business is doing promotion on its products, a manager may just send the same email to many people at the same time to alert customers of the new product they are selling. Strategic marketing has also been achieved through such systems that have enabled companies to achieve their goals and objectives in various fronts (Michael & Yvette, 2012, p. 1). Marketers can advertise goods and services online, through media houses and even billboards which are designed in a way to attract potential customers. Managers should be aware of this existing system in order to be able to achieve their goals in sales department.
Technology is currently well established, and most businesses have embraced it as they are using it in the running of day-to-day operations. In every business department, systems are used, and that means technology is involved. In dealing with customers, different systems are used to collect data from so as to be able to make the best market and supply chain decisions. Developing and managing customer relationship management is essential for the business even in the future, as it allows for easier and most efficient solution of problems concerning services offered to customers (Romano & Fjermestad, 2001, p. 66).
Conclusion
In conclusion, the establishment of technology has been properly utilized and effectively used in businesses, making it easier for the development of new products. This is when developing new products; new procedures may be required, and these processes may not be available in the existing production method. With the technology in place, goods can be produced easily and faster, therefore, saving time. Customer relationship management system is connected to major technologies as it provides data that can be used in management and planning, human resources management systems and even general communication systems. It is an important system that if well managed, assists the business in coordinating data from other departments so that the proper conclusion and decision-making can be reached. The technology is now widely used in businesses since the businesses, need to collect data on their customers and be able to come up with a way of solving customer problems. Most businesses use this system to make their work easier and cheaper when keeping records of their customers.
Bibliography
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Appendix
