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Customer Relationship Management Systems (CRMS)

Key Concept Explanation

Successful businesses know how to gather and interpret data from their customers. Customer relationship management (CRM) is the process by which an organization gathers data through their marketing, sales or customer support and uses it to improve their value propositions (Meredith & Shafer, 2016). Organizations may also employ CRM technology to achieve this goal. The integration of CRM systems with the use of social media is a trending technique for modern businesses. CRM can increase customer value and trust, and in turn increase profits.

Comparison

The selected text for this week briefly discussed CRM, but the supplementary materials supplied a more complete understanding of the material. One of the key similarities among the research were the benefits described in each source. Meredith and Shafer (2016) said that CRM has the ability to improve customer service. Dhaka and Nahar (2014) agreed and added that these systems can also increase support for decision making, customization of marketing, and increased profitability. The practice also “brings together people, technology & organizational capabilities [to] ensure connectivity between the company and its customer.” (Dhaka & Nahar, pg. 2194, 2014). The application of a CRM system is a valuable business tool.

An area that the supplementary research covered that the course text did not was the relationship between CRM and social media. In today’s day and age, interacting with customers through online platforms is absolutely key. Malthouse et al. (2013) introduced the idea of social CRM which is the understanding that

Social media influence the degree to which customers can engage with a company, and that the customer's level of engagement both affects and is affected by the company's approach to each of the three components of traditional CRM—acquisition, maintenance, and termination (Malthouse et al., pg. 271, 2013).

This influence can be positive or negative depending on how well the company manages relationships in the social media platform. For this reason, it is important for organizations to consider integrating their preexisting CRM systems with social media or replacing them with new methods (Rodriguez et al., 2014).

Article Summary

Even though CRM approaches are more important than ever in a social media world, adopting them is challenging. In a study by Nguyen and Waring (2013), the researchers evaluated how the adoption of CRM systems relates to the nature of the organization and its employees. The study highlight the importance of innovation among management and suggests that this is a key characteristic for predicting the successful adoption of a CRM system (Nguyen & Waring, 2013). Successful CRM initiatives are led by managers who evaluate the resources of their organizations and support IT efforts to implement CRM software systems (Nguyen & Waring, 2013).

Organizations interested in implementing a CRM system must be prepared. Nguyen and Waring’s paper included a description of the adoption process. According to the authors, the process begins with diffusion, which they define as “the process by which an innovation is communicated through certain channels over time among the members of a social system” (Nguyen & Waring, pg. 828, 2013). The other key factors in this process are the ability of managers to understand the IT requirements of the implementation and to fully support the product and its adaptation to the business (Nguyen & Waring, 2013). Adoption of CRM systems are usually successful when these features are present.

Biblical Integration

One of the key elements of the research for this project was the necessity of managers to be innovative if they are going to implement a successful CRM program within their company. Innovation relates to a leader’s ability to think creatively about the system and strategize for solutions when obstacles arise. The Bible suggests that this kind of creativity is evident in God’s character and is accessible to believers who seek this gift. Exodus 35:35 talks about how God gave the Israelites creative skills and abilities in order for them to build his temple. In 1 Kings 3:16-28, God-given wisdom enabled Solomon to find a creative solution when two mothers approached him claiming they both were the mother of one child. Managers interested in implementing a CRM system will need to rely on God for the innovation necessary to carry out the task.

Application

Customer relationships are key to the growth and prosperity of any organization. Dedicated CRM systems, whether they be a customer relations approach or policy, or dedicated software platforms, are important if businesses want to know more about the needs of their customers and improve their business. Managers should make sure they are fully prepared for the task of implementing a CRM and should monitor the process carefully to ensure adoption (How to Prevent Your CRM from Failing, 2017). If the system can be built effectively, the business will benefit from better interactions with customers, more referrals, and a higher profit margin.

References