There are countless unique and different goals that organizations use to
define customer relationship management. However, the goals of any effective
customer relationship management program are similar because they all try to be able to understand and respond to
customers' needs and wants. The days when customers walked into their brick
and mortar stores, glaced at a catalogue while the business owner took their orders are becoming obsolete.
This support network for many communities has been replaced by a much larger entity that encompasses the global community.
The Internet and its’ varies applications has altered the way in which the world views and conducts business.
As a result, over time, the needs and desires of these businesses and their
customers have changed. Now, the business community is moving at an ever accelerating pace. Results are expected immediately
in the marketplace, customers are not willing to wait for answers or products. Due to the high levels of competition
that the global marketplace has created the very nature of business itself has shifted.
Companies today do not have the luxury of being able to wait for results. Any time lost in collecting, analyzing, and
acting on data can create negative ramifications such as lost customers and/or revenues.
Ultimately the goal of a CRM
is to identify and create relationships between the business, vendors, and customers. While monitoring their proactive and
reactive responses, many software companies have designed generic and specific packages for companies to address the need
for efficiency and relevance in their data collection. Generally, tools which perform operational CRM enable a company to
better understand how customer demands can inform and frame business activity.
According to Judith Lamont www.kmworld.com, CRM software supplies the infrastructure needed to identify markets. However, Thompson (2005) argues, successful CRM vendors also
must address issues such as ensuring satisfaction between customers and business partners, developing loyalty, and identifying/
measuring the outcomes of the CRM applications. Thompson adds to this by stating that
there are three key functions of successful CRM as:
1)
developing a customer-centric strategy;
2)
using appropriate metrics to guide [the] CRM journey;
3)
aligning [the] organization with [the] strategy. (p. 6)
Business’ face more challenges then ever before when creating an effective
CRM plan and choosing appropriate applications to mine data. These business’ need to first and foremost identify the
types of information they need and can collect this from users. They must also balance the privacy rights of Internet users
themselves. The issues facing businesses that incorporate CRM technology and the Internet are significant, but not impossible
to find solutions for. As the Internet's application abilities change over time and corresponding issues arise, solutions also emerge to minimize the problems associated with an e-business CRM.
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