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Customer relationship management theory
Advantages and disadvantages of business communication
Customer relationship management theory
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Introduction Previously, customers could not influence the affairs of a business. Hence, information was only transferred from management to the lower order staff in an organisation, thus allowing brands to have complete control of the information that was in the public domain. However, in the present society we live in today, customers can influence many aspects of a business. With the advent of social media, information about a business and its affairs can be transferred easily across a nation or even across borders. The type of information being communicated with the world can determine whether a business would be successful or a failure in the future. Knowing this, companies strive to implement procedures and mechanisms to ensure that good word of mouth is spread throughout the public. One such mechanism companies implement is the use of a Customer Relationship Management (CRM) program. Customer Relationship Management can be defined …show more content…
Internal collaboration alongside external collaboration can boost the successfulness of a business. However, before companies start to move forward to collaborating externally with suppliers, partners, and customers, they firstly need to address the culture within their own organisation such that there is a culture of collaboration. When this is achieved, it helps to support outbound collaborative activities. Advantages of internal collaboration are decreased working time, increase employee morale and the ability to achieve the goals of the business. So how does a business create a collaborative culture? This question cannot be answered simply because each organisation and its employees are unique. Due to this uniqueness of employees and the business, what methods may work in one organisation might not be as successful in another business. To achieve a collaborative culture a business might follow some of these
Senior leadership can have a clear and accurate assessment into their internal customer-facing organizations and activities (Jacewicz & June-Suh, 2015). The Senior leadership strategy of REI can use the CRM as a tool to remain close to the consumers, especially by offering a social networking component to their CRM implementation. The social networking allows the company (REI) to become part of the conversation and track future trends and desires of the consumers. Today’s CRM applications are evolving into social customer relationship management systems (SCRM). The SCRM concept is a great fit for REI, with the REI mission to provide customers with best outdoor gear, the SCRM can be used by the business for creating a collaborative customer experience (Jacewicz & June-Suh,
How employees of an organization think and work together creates an organizational culture. This organizational culture could be bad or good depending on many factors. As an example, on my own job we have several crews and each has its own culture. The stronger crews' tend to have better leadership, morale, and team structures that are built upon support for one another. This creates a strong crew culture where every member is thinking alike and working together toward the same goal with the best of intentions and greatest of efforts.
Denhardt et al (2016) came up with some useful suggestions to keep in mind when approaching collaborations, communication and teamwork: have clarity on the goals of the team; that means come up with a clear teams mission, vision, and goals that outline each individual purpose and task. Clearly communicate and define the roles, actively listen to other members of the team and have formally designated roles for each team member (Denhardt, Denhardt, & Aristigueta, 2016). Have a reason to listen and suspend judgement. Having a reason or purpose to listen increases motivation to listen well and find a reason or purpose to listen will help focus on all of the other principles and techniques (Denhardt, Denhardt, & Aristigueta, 2016). Other things to consider are: resist distractions wait before responding and think before you speak. These are effective communication approaches that each person should take while in an individual/group collaboration. Nonverbal communication is another approach during collaboration. Body language can be a key that sends a message to your collaboration group without you even knowing it. Nonverbal communication is becoming an especially important topic as people from different cultures interact more frequently and has different culturally approved ways of expressing themselves nonverbally (Denhardt, Denhardt, & Aristigueta, 2016). To be a successful collaborative management in the workplace, you must actively communicate with your team members and be open to new
...tionship with participants in an effort to further a shared goal. In order to create a climate of collaboration they need to determine and act upon the collective needs of the collaborative team. As mentioned, the first step is building trusting relationships. Trust, after all, is at the core of collaboration and without trusting relationships collaboration could not take place. In the infancy of collaboration leaders need to walk the talk and be the first among the collaborative team to trust. Doing so creates an environment of collective genius because leaders ensure the consideration of alternative viewpoints in discussions. In seeking a diversity of inputs leaders naturally encourage the participation of all members of the collaborative team. This inclusion allows for more creativity and a much more dynamic result. (Kouzes & Posner, 2007, pp. 221-232)
In the present society, the development of technology has changed the way people think about the role of customer relationship management (CRM) in an organization’s marketing strategy. In the past, CRM is used by information technology companies to describe software applications in marketing, selling and other business functions (Boulding, Staelin, Ehret & Johnston, 2005, p.155; Buttle & Francis, 2004). However, companies now make efforts to build, maintain and enhance their relationship with customers (Herhausen & Schögel, 2013, pp. 1678-1700). Through providing customers with values they want, companies improve their business performance. As a result, companies now pay more attention to
Without customers continuing to purchase products from any company, there will not be any profit. For consumer needs, good communication habits are required so that his or her satisfaction is always priority. By consistently keeping an open means of communication with purchasers, there will be continued knowledge of how to keep them satisfied. Word of mouth can make or break a company (Richins, 2009). When consumers receive negative feedback about a product by someone they trust in their personal life, they are very likely to avoid purchasing that product.
Customer relationship management systems are part of enterprise applications. These systems are used to help manage relationships with customers, Information is provided to coordinate all of the business processes that deal with customers in sales, marketing, and service to optimize revenue, customer satisfaction, and customer retention (Laudon & Laudon, 2012).In today’s world, customer management relationship systems have given companies a large list of ways to interact with customers. Even though those ways are applied occasionally, companies still find even newer ways to provide customers an enjoyable experience for their products and services. Today, the customer relationship management industry is mainly focused on components, such as crowdsourcing, customers using mobile apps of companies and interaction from the social media teams of companies. Needless to say, Starbucks, coffeehouse chain, have pioneered in this system. Starbucks started out as a café in Seattle, Washington in USA at1971. One day, in 1981, a man named Howard Schultz entered in the café for the first time and fell into homelike environment of the café. He adored the place so much that, in 1987, he and a group investors acquired the café. From there on out, as of June 28, 2015, they have built more than 24000 stores in 70 countries
In the sector of management, the popularity of travel distribution over the Internet has provided hoteliers the opportunity to review consumer-generated content across the industry, because these reviews and ratings provide a powerful tool and a wealth of data to hotel management. Also, it is important for hoteliers to take consumers’ negative comments seriously in order to provide a service recovery or change product to better suit consumers’ needs. In article “The implications of social media on customer relationship management and the hospitality industry”, it is said that hoteliers have found that review of the information in comments enabled them to make management decisions that resulted in improved service operations (Rosman & Stuhura 2013).
Computer Economics, a research and consulting firm, surveyed 209 IT organization worldwide regarding their IT investment plans. The leading trends “were identified as low risk/high reward based on their cost predictability and their positive return on investment for organizations within two years’ time.” CRM tops the list for 2014 (Mackie, 2014)
With social media’s rise in popularity, consumers were given another platform, a viral one, to discuss companies and their products/services. While the main focus of public relations has always been to promote communication and goodwill, the practice also promotes publicity for their clients. With the growth from traditional tools to more sophisticated tactics like video news releases, webcasts, blogs, and social networking, public relations has been able to transform its effectiveness in just a few short years. Any company that does not include the use of social media, is missing the opportunity to obtain valuable information about their brand while also losing a chance to spread its message on a platform that reaches
It causes them to think, plan and make decisions according to the team. In the past teamwork culture has taken a backseat. However with changing times, organizations understood the importance of nurturing and promoting the culture of teamwork (p.1). In order to promote teamwork, management leaders need to clearly communicate to everyone that the expectation of exceptional work is not just an individual level but at a team level and collaboration is expected out of every team (p.2). Teams that are demonstrating teamwork should be recognized. According to Conway (n.d) “ set expectations that bonuses, rewards, or compensation will vary depending on the collaborative practices adopted and followed by each team along with the individual achievements and contribution as a team member (p.2). Management should also share the outstanding achievements with other teams and organizations, so that people feel encouraged to participate and nature the team work culture
In order to explore the nature of the practice of collaboration, the author has specifically focused on some of the concepts which challenges the individuals involved in collaborative alliance. Two main concepts have been explored to justify the challenges of the individuals. They are (i) Collaborative advantage, and (ii) Collaborative inertia. There exist dilemmas between these two concepts. Both the terms create a dilemma and a question arise of – “If achievement of collaborative advantage is the goal for those who initiate collaborative arrangements, why is collaborative inertia so often the outcome.” [Huxham, C, and Vangen, S. p- 53] These two concepts draw out the reason of what is always taken as granted in collaboration and what actually happens. Such perspectives results in collaborative inertia, even if the goal is to achieve the collaborative advantage.
Customer relationship management or CRM for short is a model for managing a company’s interactions with current and future customers. When CRM is utilized correctly it will increase profitability and customer loyalty, which are both very important to an organization. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support. Customer relationship management is very important in many ways to help a company become and stay successful. CRM can help businesses gain a competitive edge through communication, marketing, gathering customer information, social media and mobile technology. Customer relationship management is a continually evolving domain and now social media technologies have revolutionized the way businesses and consumers interact. (Choudhury & Harrigan, 2014) There are many benefits that come with implementing customer relationship management.
Customer relationship management has become the marketing buzzword of the past two decades with business-to-business firms jumping in, many without really being certain of what they hope to achieve from it, and oftentimes being disappointed with the results.
Collaborative customer relationship can be defined as a relationship-building strategies which is target on strong and lasting commitment, are especially appropriate for customers.