Topic: Customer Relationship Management Essay Example

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Customer Relationship Management 1

Topic: Customer Relationship Management

How is CRM different from Relationship marketing and Customer information Management?

Relationship Marketing is the concept of marketing and sales. It encompases construction of long ending relationships with clients. This could be achieved through endless provision of good customer service or offering discounts on various products. It seeks to create strategies to reach out to clients by creaing awarenes and mantaining public relations.

On the other hand, CRM is a set of softwares, practices and strategies, rather a tool that aids in collecting clients details and storing it. for example their demographic characteristics and history of purchase (Kumar 2010, p.11).Therefore, CRM is the key tool that Relationship Management uses for its strategy implementation.

Customer Information system entails only collecting data od clients and availing it for sstaffs of a particular firm to use it to enhance customer relationships. It therefore, is a constituent of Customer Relationshiop management.

Why is CRM more than just implementation strategy?

This is because its existence in an organization does not automatically bring success. It is more on how the clients’ needs collected by the software are acted upon. It encompasses the technology per se, how updated it is, the compatibility of the softwares with the company needs, the people who work with it (Linoff & Berry 2011, p.20). Are they equipped enough with the right skills to propagate the software? Do they accept it rather own it? lastly is that it is a process which has to be well planned and incooporated the best players to produce results.

Question 3

There are numerous theories that support bi-literalism as well as cooperation of bodies. To start with, Emile Durkheim and Herbert Spencer theory of structural functionalism stipulates that society is a complex system whose parts work in collective manner, for the purposes of promoting solidarity and stability of the society. Furthermore, Spencer popularized the analogy that the elements are like the organs that work for the common good of the body (Dimant, 2011).

At the same time, Classical realism theory apparently outlines the bilateral relationships. Classical realism postulates that all states seek power. In other words, the theory states that all states seek to increase their power as well as decrease the power of their enemies .They maintain the slogan that when it is not in our hand it is threatening.

Managers with the Knowledge of the relationships are aware that an organization is made up of different parts that should work in harmony to produce results in an organization. For example, giving promotions to the customers show the importance of cooperation. At the same time, managers with the knowledge are also aware of what their competitors are offering to the customers for the purposes of enticing them (Dimant, 2011).

What are the different components of CRM?

Human resource management which entails matching the right human and technical skills for the right task to ensure quality work output. Marketing is another component which encompasses the strategies and methodologies set aside to create awareness and promote the products or services of a company (Kumar 2010, p.15). Customer service done through collection of data, their needs and complaints to ensure that they are acted upon. Failure to which would lead to customer diversion or she diverts to another with her friends. Finally, business reporting is a key parameter which puts all sales and customer data in data analysis for future reference.

In what ways do these components impact on the overall process of managing customer relationships.

Customer service builds trust with customers and proves the dependability of the company (Kumar 2010 p. 21) For example if a complaint about poor services is filled by a customer and acted upon with immediate effect, this enhances trust hence the customer is retained. Marketing be it through advertisement or incentive based creates awareness of a product hence increases chances of more customers.

What role does trust play in relationships between customers and organizations?

Trust is akey component for the success of any relationship. It ensures transparency in the business activities which boost customer trust. It is characterized by high integrity and quality goods and services. Trust from customers ensures high sale rates which impvoves the competitive power of a particular company over its rivals ( Rendtorff 2008, p.13)Trust leads to customer referrals from friends hence increased network creation.

Briefly explain the components of trust and how they apply to your to your relationship with your preferred hairdresser/salon


Technical know how is one of the main components of Trust ( Rendtorff 2008, 27)Customers and partners are in the look out for a supplier with a higher degree of expertise in their work since it is directly proportional to quality products and services. Hairdresser has the skills to hadle her customer needs. I have referred many friends and they always go back to to quality work which is efficient enough for them.


Moral uprightness and honesty are key qualities that any human being would possess. These build a highly admirable reputation in the society and thus trust. She is honest with her work. She never tries a hairdo which she is sure her competence is wanting.


This is a two way process which requires good interpersonal skill. The needs of the customer need to be well articulated and a language understandable by the service provider. Personal information ought to be handled with cofidentiality and care. My hair dresser happens to have quite impressive interpersoan skills which complement mine. This has ensured a healthy relationship between us.


A trusted person is one you can depend on at any time of need. He or she always tries their best to come to your rescue when in need. They don’t lie about their availability when they know they are likely to be held up elsewhere. My hair dresser is dependable because she makes my hair at the time we had agreed. Incase of readjustment, she communicates on time

Question 5

Swedish economist Assar Lindbeck stated that the external effects of production and consumption don’t only affect the households but the country too including pollution and energy. At the same, the contract theory and economics pacts with the study of the ideas in the transactions in that one side has more and informed information than the other. As a result, there is imbalance of power in transaction (Dimant, 2011).

The theories of bilateral and multilateral tend to agree on the point that all the external factors affecting the organizations are the same as well as consistent even in variation of geographical locations.


Dimant, E. ( 2011). The Transition from Bilateral to Multilateral Free Trade Agreements as a Multiplier Process Multifarious Impacts on Economy and Business in context of ASEAN Countries (with extensive appendix. München: GRIN Verlag GmbH .

Linoff, G.S. and Berry, M.J., 2011. Data mining techniques: for marketing, sales, and customer

relationship management. John Wiley & Sons.

Kumar, V., 2010. Customer relationship management. John Wiley & Sons, Ltd.

Rendtorff, J.D., 2008, October. Corporate citizenship, trust and accountability. In The 24th

Conference of the Nordic Sociological Association.