CRM(Customer Relationship Management){9}


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 dot.com 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, Saleforce.com, 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.). Business-Software.com. Retrieved February 25, 2014, from http://www.business-software.com/article/five-best-crm-companies/

Goldman, D. (2011, November 1). Verizon, AT&T, Sprint and T-Mobile on privacy policies. CNNMoney. Retrieved February 25, 2014, from http://money.cnn.com/2011/11/01/technolo

Nguyen, B. (n.d.). The Dark side of CRM. ebscohost. Retrieved August 1, 2012, from http://0-web.a.ebscohost.com.opac.library.csupomona.edu/ehost/pdfviewer/pdfviewer?sid=06ad4b79-ed18-4046-a4e6-73aaff91b0c2%40sessionmgr4004&vid=2&hid=4106