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Customer relationship management which is frequently denoted as CRM can be described as the process through which the interactions and the relationships between the customers and the business are managed and controlled (Adrian, 2005). The customers in this case are both the current and the future customers of a business in its life. It is therefore the framework of principles duties and responsibilities which the business puts in place and ensures during its interaction with the customers. It is therefore through CRM that the relationships and bonds that exist between the customers and the business are fostered. This is therefore the key determinant of the future of the relationship that will be created between them. CRM can be defined as the key reason behind the development of the levels of customer brand loyalty to the products of the company (Avery, 2014). Through brand loyalty the business will be able to operate in a proper manner in the industry and also in the market at large. It is through therefore that a business undertakes to attain the goals that it has set to achieve in its life.

CRM can be categorised into several sub classes. They are as indicated below;

  1. Software – this involves the collection of the information and details and data of the customers into one system. From this the company can access the information that they need from the customers. In this storage also, they can control the leakage of the customer details to the world or to unauthorised people (Davenport, 2001). Through this, the levels of interaction between them are enhanced to great levels. They can also be able to access the changes and the impacts and influences f the customer demand patterns on the things such as the levels of sales and revenues of the company.

  2. Cloud solutions – this is where there is a back up of the data of the company in the cloud. Through this, the data is free from such things as deletion, manipulation or interference of any type. Cloud solutions offer a basis for the safe storage of the company information relating to such things as the customer information and other mechanisms (Hassan, 2013). Through this, the data is accessed in a controlled manner. This is to the better of the company and business operations.

  3. Management — CRM is made possible through a well formulated management channel. Through this, the people in the management of the company can be able to have a degree of control over the information and details of the customers. Through this, the decision making process of the people in the top level management is improved (Joachim, 2002). This aids in the quick and accurate interpretation of the information of the data and information of the people in an easy and foolproof manner. This is also to the better of the company.

Purpose of customer relationships management

Recent times have been characterised by development in the internet and other infrastructure. With this the customers may be wary about some things as the security and privacy of their documents and details which are stored in the internet. CRM comes in handy in the improvement of the confidence levels of the customers. It also aids in giving the customers assurances as to the status and the operations of the business. The improvement in the confidence levels of the customers to the operations of the business goes an extra mile in the seeing to it that the business is able to thrive in its operations. This therefore aids the business in its development agenda.

Over the recent past, there has been an increase in the cases of such things as identity theft and security breaches. This has resulted to the breach in the privacy levels of the finances, the personal information and top secrets of the customers by the cyber criminals. This has resulted to the loss of important information to the criminals. With this, CRM creates harmony and confidence among the customers as to the status of their accounts and information which is held by the company (Zakaria, 2012). This is done mostly by a customer relationship manager who is responsible for the addressing of all the issues that are facing the customers. It is through this that a business is able to develop and to advance in its operations.

Role in decision making, planning, performance and monitoring

It is through the process of CSR that the businesses are able to know crucial information about the customers which they will use to deliver exemplary services to them. This includes such things as the demand patterns of the customers, the levels of incomes, the amounts of debts that the customers have and also the savings that the customers have accrues. The businesses can use this information to predict the demand patterns of the customers. This is through the use of trend analysis of their financial statements. Through the analysis of the trend of the demand patterns of the customers, they are able to make crucial business decisions as in regards to the future demand patterns. These decisions can impact on the performance of the business in a great manner. Through the analysis of the information of the customers through the CRM, there is the creation and the development of a proper basis for the planning of the activities of the company (Applegate, 2003). This is usually to the better of the company. Through this, the planning and the budgeting process for the activities of the company can be carried out in a manner that is easy and more accurate. This therefore aids in proper anticipation for the changes that might occur in the business operations. It also aids in the control of the cost reduction strategies that are put in place by the company. It is also through this that the profit maximization procedures are attained and achieved by the company.

As pointed out, the effect of having a well managed CRM has many impacts that it plays in the company. The impacts range from the aiding in the decision making process. This is through the reduction and determination of the trend of the activities of the company. The second impact is on the planning and budgeting of the activities of the company. This is done through a creation of a trend which acts as a guidance in the adjusting and the planning of the matters of the company. The third impact as pointed out is on the monitoring of the progress and the effectiveness of the factors that have been put in place by the company. This is carried out through the implementation of a framework of control ad operations. The framework is observed for the changes and the progress that is attained or made is recorded.

Benefit to the organization

He satisfaction of the customers in a given organization or business is crucial for the development and growth of the organization. This is because it has a direct impact on the economic performance of the company. This is mostly so because of the benefit that is has in the increasing in the levels of the customer brand and product loyalty. Through this, there is a reduction in the levels and number of complaints that are raised by the customers on the various services and activities that are carried out in a given organization. This is to the better of the company performance (Yen, 2003). CRM strategies have the effect that the increase the levels of satisfaction of the customers in their undertakings. This is usually for the general good of the performance of the business. Customer satisfaction on the other hand results to an increase in the levels and the amounts of returns that are made by the business. Increased returns equate to increased profitability.

Additional benefits that accrue from the use of the CRM to the market and to the business is as pointed out the reduction of the costs that are incurred in the processes such as budgeting and monitoring of activities. This is because the use of the CRM strategies aid sin the creation of a proper flow of the business. Through this, the company incurs fewer costs in the forecasting of the production levels or in the determination of the measures to be put in place in the company operations. This also aids in the profit maximization of the company.

CRM also has the advantage of raising the levels of control in the management function of a given business. This is because it creates a degree of order among the people in the management, the subordinates and the customers. Through this, the business is able to be tuned in a manner as to see to it that it attains all the goals and targets that t has set for its operations (Jones, 2008). This also has the benefit of seeing to it that a business has developed lasting relationships with the customers. Through the creation of lasting relationships, bonds are created that will result to development of brand loyalty among the customers to the commodities and items of the company. This will be to the better of the company and it will aid in the countering of the competition that is present in the market.


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Hassan, M2013, Rural Consumers’ Adoption of CRM in a Developing Country Context, International Journal of Business and Management Invention (IJBMI), vol.2, no. 9, pp.121-131.

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Zakaria, N2012, CRM Benefits for Customers: Literature Review, London, Rutledge.

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