Customer relationship management (CRM) is a topic, which can be found high in the agenda of many general, commercial and IT managers, mainly due to activeness of information and communication technologies’ industry development. According to Ed Peelen (2005), CRM is associated with an automated process that addresses all aspects of customer identification, creating customer knowledge and customer relationships and shaping the image of both the organization and its products (4). Appearance and quick spreading of CRM systems reflects a critical trend of modern management, which lies in going away from product-oriented business to customer-centricity (Buttle 2012). Particularly CRM information systems allow managers making informed decisions on sales, marketing and development of new products with necessary respect to customer data, which are already available, so that needs and wants of clients are anticipated. Moreover, CRM makes marketing and targeting far easier than they were before. Another important advantage of CRM is a chance to create better value for the company. Among disadvantages of introducing CRM it is worth emphasizing significant expenditure, associated with introduction and running of CRM, the need of training to get acquainted with CRM and related privacy concerns (Ueno 2006).
Despite the fact that CRM has recently become popular, there are lots of misunderstandings related to it. The first one to mention is that CRM cannot be considered just an information system.. Most CRM implementations are strongly connected with creation of sophisiticated managerial information systems and databases, and finding IT solutions. However, it must be emphasized that RM is aimed at creating products and strategies, appealing to customers’ needs and wants. The thing is that pursuing this aim requires using IT. So, the link between CRM and IT is exactly the same as between every goal and means, employed to reach it.
References
Buttle, F. (2012). Customer relationship management. London: Routledge
Peelen, E. (2005). Customer relationship management. Harlow: Pearson Education Ltd
Ueno, S. (2006). The impact of customer relationship management. Retrieved 28 July 2013 from http://www.wcfia.harvard.edu/us-japan/research/pdf/06-13.ueno.pdf
