CRM(Customer Relationship Management)

by Ashwin R
The Customer relationship management (CRM) is about the management of the clientele, their records and their relation and to use this data to further develop the customer relation policies and management decisions. Basically the CRM is the integration of people, technology and the business process in the quest to protect the existing clientele and provide opportunities to further enhance the circle of customer’s satisfaction. According to the company Arvato a leader in CRM, “develops and operates customer clubs, customer loyalty programs, and individualized bonus programs for end customers and business partners, as well as carrying out special promotions and other personalized incentive arrangements.” So in the quote above the company states that without their CRM they would not be able to achieve customer clubs and loyalty program. CRM is the reason why such things as flyer miles and credit card points exist. The CRM is the catalyst that provides useful help about the customer and the business dimensions that is defined by the customer reviews and satisfactions. This useful information provides highly useful insight about the customer and their behaviors. This in turn helps the marketers establish their target audience and such.

CRM, the inevitable tool for today’s business, is a concept that first arrived during the period of 1990s by promulgating the idea that the customer is the base and no business can be sustained not to speak of its expansion and further development. The key idea behind CRM is that no customer, no business. In the initial time period, the CRM technology and tools was complex and costly but because of the arrival of arena and the increasing rivalry among the industry giants such as Oracle and SAP etc. the CRM is accessible by most of the entrepreneurs. As of right know the leaders that provide CRM services and also had great CRM programs themselves are the following companies,, Microsoft dynamics, Net suite, and sugar CRM. These companies are the leading experts in the CRM field and help big name companies manage their customers. Besides that, there are number of medium and small size firms/software houses that are providing the comparatively economic and customized CRM solutions that are affordable even for the small entrepreneurs. These companies names are Zoho CRM, Contactually, Highrise. These companies are the leaders in the small business market because their CRM service price cheaper than the Five I mentioned above. Even though CRM has been around since the early 90s it is still one of the most popular business concepts/programs that some companies offer. “According to numbers posted by Gartner global spending on CRM reached $18 billion in 2012, a $2b increase from the numbers posted for 2011.” These numbers go to show that this is billion dollar industry and is still growing and in order for this business to run they need CIS majors. The reason for CIS, CS majors are needed is because this directly correlates with data mining and also business intelligence, and the only majors that can really do anything in that field are CIS, CS majors.

How is CRM related to Databases? CRM would not be able to exist without the use of really good database architecture. This is because the information needed to have a solid CRM is customer information and also the information on what they order from the store or company. A perfect example of this is our in class project. For our Project we are creating entities such as customer, order, and also employee.  These entities are not just there for the company to keep track of it sales, it also there to help the companies see how it’s doing, or what to pay its employees that have a good sales record. We can use the data from the order table to make great marketing analyses. We can use the data from the Order table to seek which customer ordered what, and with our relationship we can see if the customers are ordering certain projects from certain regions. This can help marketer’s make greater decisions on where they need to specially market certain products and it also gives them a good sense of their target audience. It also keeps track of customers that come back for more products, and with them you can start loyalty programs and rewards programs. That is the reason for a great CRM system it lets you keep your old customers happy and helps you find new ones.

There are pros and Cons to everything and there is nothing that is perfect and this includes business services, and programs. CRM has a huge upside for business such as helping companies establish great customer relationships, by establishing loyalty and also helping business attract new customers. There are also huge cons to CRM. CRM is to build relations with customers and you have to take their interest into account. Some companies “use of customers’ data to act in its self-interest over the interests of the customer”. This goes to show that with some companies don’t view customer information as a top propriety and they can use it for their own gain instead of the customers gain. Some companies have information regarding the customer’s credit card numbers. This can completely ruin a company’s reputation with their customers. Companies such as Verizon have admitted to selling customer information to highest third part bidder. This does not bode well for the company in the future because the customers will eventually lose trust and their whole CRM can be destroyed. Without any customer there is no CRM.

Five Best CRM Companies. (n.d.). Retrieved February 25, 2014, from

Goldman, D. (2011, November 1). Verizon, AT&T, Sprint and T-Mobile on privacy policies. CNNMoney. Retrieved February 25, 2014, from

Nguyen, B. (n.d.). The Dark side of CRM. ebscohost. Retrieved August 1, 2012, from

9 thoughts on “CRM(Customer Relationship Management)

  • March 2, 2014 at 1:58 pm

    The strongest aspect of Customer Relationship Management is that it is very cost-effective. The advantage of decently implemented CRM system is that there is very less need of paper and manual work which requires lesser staff to manage and lesser resources to deal with. The technologies used in implementing a CRM system are also very cheap and smooth as compared to the traditional way of business. Excellent presentation, enjoyed the provided pros and cons section as you highlighted benefits as well as disadvantages of the CRM model.

  • March 5, 2014 at 11:41 am

    This article really got my attention. It is because Customer relationship management could be applied to every industry nowadays, and this is the information all the business students have to know.

  • March 8, 2014 at 10:38 am

    CRM is one of the single best ways current internet companies can take care of their customers. It is interesting reading this post and directly before reading the post about database ethics. I supposed there is a fine line between collecting too much information and just enough. Through the lens of this article I do believe that if an internet based company is going to make it in competition with actual brick and mortar stores they are going to have to collect this information i.e Amazon. Not only are they going to keep the customers they have but they will also save money by doing so because like we all know it is cheaper to keep an existing customer than it is to get new ones. This is avery informative article and look forward to more on this subject, good job.

  • March 11, 2014 at 11:59 am

    I liked your point about how CIS and CS majors are in high demand for the booming field of CRM. CRM is integrated in all forms of business and is necessary to succeed in the modern world. As we are studying computer information systems, we have become familiar with both the business and technological side of companies and how to interact between the two sectors. This knowledge can benefit companies greatly as they implement data mining and then need to analyze the data into a strategical business plan.

  • March 14, 2014 at 12:08 pm

    Customer Relationship Management if use correctly is an excellent tool to maintain and expand customer relationship, and this needs to include all levels of customers, from the least to highest customer in a commercial enterprise, to keep their customer and business growing. It is of good advantage to store and safe-keep information of clients or customers for present and future business and in the long run it will pay off as normal a business will grow within time and having and expanding the amount of customers and having their information available will reduce cost and will increment profit.

  • March 17, 2014 at 2:37 pm

    Customer relationship management is very crucial to business and can be utilized by every industry. I believe that this is essential knowledge for anyone in the business field because it not only good for customer retention, but also attracting new customers. It’s also interesting how this can be used in a negative way where companies are using this information for self interest (selling user data).

  • March 17, 2014 at 8:13 pm

    Your topic and presentation of CRM cause me to further research this topic. Some of the things that I found was a business call Vindicia and These two companies provide different kinds of CRM. Vindicia provides a more aggressive CRM where they give customers more entitlements depending on how long the customer has been with a company. however has a simplier API that seems like it would be easier to use and implement.

  • March 19, 2014 at 10:39 pm

    CRM is such an important tool in our society today. CRM can improve all aspects of a business and it is important for them to control CRM with the use of their databases.

  • March 20, 2014 at 7:35 pm

    I enjoyed your presentation and it reminded me of a friend of mine who is in the industry. He works as a Business Analyst for a high-end flooring company, and tells me about his deployment in launching NetSuite products such as A CRM system. CRM is definitely crucial for business efficiency and function.

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