As a practicing consultant day in and day out, I have and continue to encounter people that are looking for more information and/or answers on a number of issues but especially social media and Customer Relationship Management (CRM) problems, hence my continued analysis of the subject matter. In fact, as I have learned over the last 3+ years throughout my Doctoral studies and entire business career not only does my own personal knowledge continue to increase in this subject matter but I am also finding that everyone’s knowledge is also increasing exponentially. This could be for many reasons but mostly thanks to network marketing, the new wave of social media, and CRM software (apps included) that are continuing to allow us all to communicate more effectively from just about anywhere.
However, for those out there that still think “social media” is a new part of our continually changing and mainstream culture, others disagree, as this median is by no means new. (Borders, 2009) stated that people and businesses all over the world have been using different types of digital media over the last 30+ years to communicate, socialize, network, etc. except back then, more often than not people referred to this median as the telephone, newspaper, television, etc (i.e. phones have been used for the last 60+ years). So then, what is “social media?” According to an industry expert social media is a way or form of expressing you and/or your company’s information in a social online forum. It can be looked at as the passing of information amongst friends, colleges, co-workers, and worldwide connections. This is actually no different from those days, when we used digital media such as newspapers or the landline telephone to connect with our friends, colleges, co-workers, or those often referred to as our “target market.” Whether we are connecting with people online or in-person, the truth is we can now connect deeper with others who are truly our “target markets.” Each and every time we connect in these ways (in person or online) it increases our relationships and our brand awareness. Most of the time people may not need your specific product and/or service at that exact moment but when a person does or when they run into someone that needs it they are more likely to think of you or recommend you and/or your company. Therefore, social media is often referred to as another friendly way to advertise to those within your inner/outer circles or can be broken down further to apply to a percentage of the contacts that you make over time. For example, if you meet 1000 people in a year and it applies to 10% of them, then you have gained 100 potential or “hopefully” actual clients. On a larger scale is you meet 10,000 people and have a 7% return, then 700 would be the number of potential of “hopefully” actual clients. Perhaps this is the most important part of social media, as it provides one of the only means of meeting that many people in open or closed forums through sites such as Facebook, Twitter, Quora, Empire Ave, LinkedIn, Foursquare, etc. After all, if meeting people is a big part of creditability, then you should build relationships with others first regardless of the median, and sales and/or other potential opportunities will come later. In the end, social media helps not only build relationships but also helps people plant seeds, that if watered and given sun, will eventually grow. This new thing called “social media” is no different then what people have been doing for years in sales or other organizations like local Chamber of Commerce’s or Business Network International (BNI) groups. The only difference is that social media allows a person and/or organization the ability to plant additional seeds, that 30 years ago would have been impossible or required much more time, energy, and effort, which then will in turn, turn into ripe orchards in years to come (G Social Media, 2009).
As I continue my research and reporting, not only will I continue to report on Professional Employer Organizations (PEOs) but also how Supply Chain Management (SCM), CRM, Enterprise Resource Planning (ERP), social media, and other technological system advancements will impact people and other (i.e. Small-to-Medium Enterprises) organizations in the years ahead. From this research and collected data, I will then introduce readers to a completely new concept and program that will help take us forward into the 21st Century. Until then, sit back relax, and enjoy the history, current progression, and future direction of social media and other technological systems analysis that I have/am continuing to provide and more importantly are continuing to change the way we communicate and the way the world operates. Of course, if you have any questions, comments, and or advice I am always looking to expand my knowledge base as explained in the opening; otherwise, keep smiling, as I continue to look forward to our journey together!
References
Borders, B. (2009). A Brief Histroy of Social Media, 2011, from http://copybrighter.com/history-of-social media
G Social Media (2009). What is Social Media, why, and how can it help me, from http://www.gsocialmedia.com/2009/11/what-is-social-media-why-and-how-can-it.html
Showing posts with label CRM. Show all posts
Showing posts with label CRM. Show all posts
Saturday, October 15, 2011
Wednesday, March 23, 2011
Customer Relationship Management (CRM) in Sales-Intensive Organizations
Over the last several decades technology has continued to change the way organizations manage, strategize, communicate, build relationships, procure vendors, create marketing campaigns, and track customer inquiries. According to (Tanner Jr, Ahearne, Leigh, Mason, & Moncrief, 2005) CRM currently ranks in the top five of most corporate strategies in over 60% of companies, as these systems allow leaders to manage processes, communicate more with their customers, while growing organizational marketing effectiveness and increasing customer and vendor retention rates. Additionally, Tanner Jr, et al., (2005) identified three important aspects of most CRM systems. The first is Strategic CRM, which is the organizational decision making process that helps define and/or build a customer-oriented business strategy with their business processes, and technology implementation. In other words, “the ability to define and implement a right customer → right strategy → right organization → right channel → right people → right rewards success model” (p. 169). The second is Analytical CRM, which are the processes used to analyze customer and industry information in order to provide information that is more accurate and will guide the company’s future marketing efforts. Finally, Operational CRM, which is the business process such as sales, marketing, service, support, etc. All of these important aspects of CRM and resource allocations across all channels accompany a firm’s relationship strategy and point to four issues at the strategic level (1) account management issues, (2) organizational or sales structure, (3) cultural issues, and (4) enterprise-level knowledge management.
(1) Account management issues- a strategic issue that involves how sales organizations use CRM to review the different way that accounts are managed (i.e. territory, key account management, and collaboration).
(2) Organizational and/or sales structure- CRM has allowed more organizations to place more emphasis on selling based on customer needs across many different organizational departments (i.e. field and divisional sales, electronic and team selling, call centers, supply-chain personal and vendors, partners, etc).
(3) Cultural issues- the degree to which an organizations culture may or may not be more inclined towards a CRM implementation (i.e. sales organizations commission based tend to be non-supportive of CRM versus those organizations that offer base plus commissions).
(4) Enterprise-level knowledge management- CRM systems allow leaders the ability to access vast amounts of information in order to predict, develop, and market new products and/or services. This enabling can create a general view of an organizations customer, which in turn can create even more sales and marketing campaigns that are effective.
As more and more organizations gain a better understanding of CRM, these systems will require more researchers to look at the specific benefits that CRM technology can provide a company throughout the entire organization. Therefore, Tanner Jr, et al., (2005) framework, and research for use in analyzing systems such as CRM and Sales Force Automation (SFA) could enable more organizations to achieve even higher levels of performance, procure more vendors, ROI, sales, satisfaction, and enhanced business relationships. Since these five variables are also some of the same drivers in my research analysis this study just like the others analyzed over the last several weeks should allow me the opportunity to determine if the proposed framework in this study will be the best way to determine if a CRM technology is the most important change initiative in SCM. Over the next two weeks, I will make my determination and of course report my findings for additional feedback or comment. Otherwise, if I do deem CRM to be the most important you can expect a more thorough analysis and discussion of this system in the weeks and months ahead as I apply other scholarly pieces into a real world dissertation that will be published in late 2012. Until next time, keep smiling, as it really does look good on you! Cheers
(1) Account management issues- a strategic issue that involves how sales organizations use CRM to review the different way that accounts are managed (i.e. territory, key account management, and collaboration).
(2) Organizational and/or sales structure- CRM has allowed more organizations to place more emphasis on selling based on customer needs across many different organizational departments (i.e. field and divisional sales, electronic and team selling, call centers, supply-chain personal and vendors, partners, etc).
(3) Cultural issues- the degree to which an organizations culture may or may not be more inclined towards a CRM implementation (i.e. sales organizations commission based tend to be non-supportive of CRM versus those organizations that offer base plus commissions).
(4) Enterprise-level knowledge management- CRM systems allow leaders the ability to access vast amounts of information in order to predict, develop, and market new products and/or services. This enabling can create a general view of an organizations customer, which in turn can create even more sales and marketing campaigns that are effective.
As more and more organizations gain a better understanding of CRM, these systems will require more researchers to look at the specific benefits that CRM technology can provide a company throughout the entire organization. Therefore, Tanner Jr, et al., (2005) framework, and research for use in analyzing systems such as CRM and Sales Force Automation (SFA) could enable more organizations to achieve even higher levels of performance, procure more vendors, ROI, sales, satisfaction, and enhanced business relationships. Since these five variables are also some of the same drivers in my research analysis this study just like the others analyzed over the last several weeks should allow me the opportunity to determine if the proposed framework in this study will be the best way to determine if a CRM technology is the most important change initiative in SCM. Over the next two weeks, I will make my determination and of course report my findings for additional feedback or comment. Otherwise, if I do deem CRM to be the most important you can expect a more thorough analysis and discussion of this system in the weeks and months ahead as I apply other scholarly pieces into a real world dissertation that will be published in late 2012. Until next time, keep smiling, as it really does look good on you! Cheers
Wednesday, March 16, 2011
Leveraging your Organizational Capabilities through CRM for Increased Sales
Often discussed amongst organizational leaders and sales managers are some of the issues, impacts, and activities of sales forces, which are responsible for a company’s overall bottom line results. In fact, activities such as sales calls, sale's success stories, and long-term relationship building are continuing to change the way these issues, impacts, and activities are used to manage customer information, which in turn are helping to increase sales volume, identify additional customer buying habits and requirements, thus increasing customer satisfaction, organizational profitability, and competitive actions. (Raman, Wittmann, & Rauseo, 2006) identified CRM as a technological tool that can help an organizations sales force minimize some of these challenges while helping to increase returns on a sales person’s time invested in exchange for higher sales, revenues, profitability.
However, in spite of the tremendous amount of growth in CRM implementations, many people are quick to point out the high failure rates that these systems have also experienced. (Raman, et al., 2006) reported that in a survey conducted by CSO Insights consisting of 1,337 international companies who have implemented some form of a CRM system, that only 25% actually reported a significant benefit in a sales team’s performance. The most common citing found in the survey was that most of the time organizations lacked proper strategic planning that is required prior to any major system implementation such as that of CRM. Therefore, if an organization carefully plans for a CRM implementation (operational^1 or analytical^2 ) then they will be more likely to segment customers, and market more efficiently while identifying those customers that are more and/or less profitable.
Using some of the strengths and weaknesses found within the literature on a CRM implementation (Raman, et al., 2006) conducted their own qualitative study and developed a grounded theoretical model in order show organizational leaders why they should continue to focus on the CRM technology implementations. Four capabilities are discussed (1) organizational learning, (2) business process orientation, (3) customer centric orientation, and (4) Task-Technology Fit (TTF).
(1) Organizational learning- “organizational characteristics such as size, formalization, centralization, complexity, and interconnectedness on adoption and implementation of innovations” (p. 42)
(2) Business process orientation- an attempt to clarify technological innovations that an organization is considering adapting to match their existing processes (i.e. CRM, ERP, etc)
(3) Customer-centric orientation- an organization’s ability to focus on its customers wants and needs versus that of its internal structure or processes
(4) Task-Technology Fit (TTF)- the degree that technology (i.e. CRM) helps individuals position his/her tasks with that of the organizations desires in order to meet/exceed company needs
The results of (Raman, et al., 2006) study showed that most successful CRM technological implementations occurred when an organization incorporated both operational and analytical characteristics combined with the four main capabilities previous mentioned in order to help guide additional strategic long-term decision making (i.e. sales, marketing, customer service, segmentation, properly identifying profitable, non-profitable, and cross-selling customers, etc). Furthermore, the results of the study opened new doors for research opportunities for those curious to draw on the discussed model or those who want to see if different variations of these characteristics and capabilities would help or slow a CRM implementation.
Although CRM is viewed by many as a technological solution to sales and customer service (Raman, et al., 2006) also identified some of the drawbacks of a CRM implementation. One thing is certain from this review and my analysis of CRM over the last few weeks is that CRM can provide many strategic benefits to those people and organizations that understand and utilize all the tools by properly leveraging this resource to produce higher sales, returns, satisfaction, and profitability. Everyone else who does not fully understand how to build CRM into the strategic long-term plans of the organization should be cautious with an implementation of this type.
Like many of the other articles on CRM that I have analyzed over the last few weeks, (Raman, et al., 2006) proposed yet another model, along with some very interesting follow-up (qualitative and quantitative research) for others to consider who are interested in CRM. Therefore, those people like me who are interested in researching this type system additionally could use this study and model to draw their own conclusions of these type systems. It is one thing to say something about CRM or anything for that matter but actually backing up your statements with actual data is a more effective way to get people to listen. Hence, why I will continue to research and report my findings for those who are interested in this niche technological innovation and all others looking for answers that are credible.
Of course and like usual, I am always open to other opinions of the research that I report, so if you got a thought or want to chime in with some additional insight(s) please drop me a line; otherwise and until next time… Keep Smiling
1 Operational CRM involves functions such as sales, service, support, and marketing.
2 Analytical CRM technologies involve customer information that is used by all organizational departments to analyze data in order to improve business decisions and/or future actions.
References
Raman, P., Wittmann, C. M., & Rauseo, N. A. (2006). Leveraging CRM for sales: The role of organizational capabilities in successful CRM implementation. Journal of Personal Selling & Sales Management, 26(1), 39-53.
However, in spite of the tremendous amount of growth in CRM implementations, many people are quick to point out the high failure rates that these systems have also experienced. (Raman, et al., 2006) reported that in a survey conducted by CSO Insights consisting of 1,337 international companies who have implemented some form of a CRM system, that only 25% actually reported a significant benefit in a sales team’s performance. The most common citing found in the survey was that most of the time organizations lacked proper strategic planning that is required prior to any major system implementation such as that of CRM. Therefore, if an organization carefully plans for a CRM implementation (operational^1 or analytical^2 ) then they will be more likely to segment customers, and market more efficiently while identifying those customers that are more and/or less profitable.
Using some of the strengths and weaknesses found within the literature on a CRM implementation (Raman, et al., 2006) conducted their own qualitative study and developed a grounded theoretical model in order show organizational leaders why they should continue to focus on the CRM technology implementations. Four capabilities are discussed (1) organizational learning, (2) business process orientation, (3) customer centric orientation, and (4) Task-Technology Fit (TTF).
(1) Organizational learning- “organizational characteristics such as size, formalization, centralization, complexity, and interconnectedness on adoption and implementation of innovations” (p. 42)
(2) Business process orientation- an attempt to clarify technological innovations that an organization is considering adapting to match their existing processes (i.e. CRM, ERP, etc)
(3) Customer-centric orientation- an organization’s ability to focus on its customers wants and needs versus that of its internal structure or processes
(4) Task-Technology Fit (TTF)- the degree that technology (i.e. CRM) helps individuals position his/her tasks with that of the organizations desires in order to meet/exceed company needs
The results of (Raman, et al., 2006) study showed that most successful CRM technological implementations occurred when an organization incorporated both operational and analytical characteristics combined with the four main capabilities previous mentioned in order to help guide additional strategic long-term decision making (i.e. sales, marketing, customer service, segmentation, properly identifying profitable, non-profitable, and cross-selling customers, etc). Furthermore, the results of the study opened new doors for research opportunities for those curious to draw on the discussed model or those who want to see if different variations of these characteristics and capabilities would help or slow a CRM implementation.
Although CRM is viewed by many as a technological solution to sales and customer service (Raman, et al., 2006) also identified some of the drawbacks of a CRM implementation. One thing is certain from this review and my analysis of CRM over the last few weeks is that CRM can provide many strategic benefits to those people and organizations that understand and utilize all the tools by properly leveraging this resource to produce higher sales, returns, satisfaction, and profitability. Everyone else who does not fully understand how to build CRM into the strategic long-term plans of the organization should be cautious with an implementation of this type.
Like many of the other articles on CRM that I have analyzed over the last few weeks, (Raman, et al., 2006) proposed yet another model, along with some very interesting follow-up (qualitative and quantitative research) for others to consider who are interested in CRM. Therefore, those people like me who are interested in researching this type system additionally could use this study and model to draw their own conclusions of these type systems. It is one thing to say something about CRM or anything for that matter but actually backing up your statements with actual data is a more effective way to get people to listen. Hence, why I will continue to research and report my findings for those who are interested in this niche technological innovation and all others looking for answers that are credible.
Of course and like usual, I am always open to other opinions of the research that I report, so if you got a thought or want to chime in with some additional insight(s) please drop me a line; otherwise and until next time… Keep Smiling
1 Operational CRM involves functions such as sales, service, support, and marketing.
2 Analytical CRM technologies involve customer information that is used by all organizational departments to analyze data in order to improve business decisions and/or future actions.
References
Raman, P., Wittmann, C. M., & Rauseo, N. A. (2006). Leveraging CRM for sales: The role of organizational capabilities in successful CRM implementation. Journal of Personal Selling & Sales Management, 26(1), 39-53.
Friday, March 11, 2011
Measuring Customer Relationship Management (CRM) Effectiveness in Order to Reduce Costs and Increase Sales
There are a number of applications or systems that an organization can use evaluate their current market share, profit margins, customer relationships, loyalty, and satisfaction. One such application or technological system most commonly used to analyze these trends is referred to as Customer Relationship Management (CRM). According to (Ja-Shen, Yen, Li, & Ching, 2009) CRM systems are a major marketing and/or services tool that can help an organization take full advantage of its customers by identifying trends in their customers buying behaviors, needs, and future expectations in order to maintain and grow relationships. Although a number of studies have researched and proven that a CRM implementation can enhance an organizations performance with increases in sales, few have focused on how these same systems can further develop more customer relationships, while increasing a company’s market share. As a result of these findings (Ja-Shen, et al., 2009) recent study examined three other factors (marketing, operations, and human resources) of CRM, which they believed could help organizations improve or grow their customer relationships, thus creating more organizational profitability and market share.
When an organization improves its relationship between marketing, operations, and human resources, they become better equipped to disseminate CRM data, which can then lead the organization to make additional innovations, while taking responsive actions. (Ja-Shen, et al., 2009) refer to this dimension of CRM as the Information Technology (IT) or Customer-Focused Information Technology (CFIT) segment, which is the first of three dimensions of interest in their analysis that supports the operations of a company’s CRM processes. The second dimension of interest in (Ja-Shen, et al., 2009) study was referred to as Relationship Marketing (RM), which was identified as the root efforts of a CRM process that can help an organization manage and improve its new and existing relationships with its customers in order to increase customer satisfaction, all while creating additional long-term profitability. Finally, (Ja-Shen, et al., 2009) referred to the third dimension of interest in their study as Customer-Focused Organizational Climate (CFOC) or the human resource side, which deals with an organizations culture to accept, use, and build upon any CRM system in order to help the organization develop, maintain, and grow customer relationships.
(Ja-Shen, et al., 2009) empirical study found that together (marketing, operations, and human resources) with (CFIT, RM, and CFOC) the most common view of CRM as a marketing application or complement of a company’s information technology or CFIT should also include the other two dimensions (RM and CFOC). If an organization wants to excel in the global market it is imperative that more organizations focus not only on advancing their information technology through systems such as CRM but that they also need to use CRM system data to create additional programs that focus more on the retention of current customers (needs) and acquisition of new customers (expectations). Only then will more businesses develop deeper understandings of their customer bases, while being able to target and market more effectively, resulting in more value, satisfaction, and cross or up-selling possibilities.
While the concept of CRM is an increasingly popular and hot topic throughout the world, research into the systems effectiveness on increased market share, profitability, customer relationships, and satisfaction is rather limited. Therefore, (Ja-Shen, et al., 2009) analysis provide three important dimensions (1) RM, (2) CFIT, and (3) CFOC of Customer Relationship Management Effectiveness (CRME). In order to improve the understanding of CRM systems it is dimensions such as these that managers will need to consider as they are continuing to identify the strengths and weaknesses of these programs, so they can continue to retain, update, and analyze the mass amounts of data collected to develop a deeper understanding of customers needs and wants. More importantly, these factors are even more important for individuals that want to reduce costs, while finding new ways to increase sales, Return on Investments (ROI), or enhancing their business’s performance.
This analysis of CRM systems is yet another example of the type of benefits that this supply chain function can provide organizations that truly are looking to grow their business. Therefore, I will continue to provide additional updates into this niche market, as I continue to refine my research in hopes of finding the supply chain function that can contribute most to the additional growth of Small-to-Medium Enterprises (SMEs). Of course, your opinions are always welcome as I truly welcome any additional insights that you may be able to provide. Otherwise, keep smiling since it really does look good on you—Cheers!!!
References
Ja-Shen, C., Yen, H. J. R., Li, E. Y., & Ching, R. K. H. (2009). Measuring CRM effectiveness: Construct development, validation, and application of a process-oriented model. Total Quality Management & Business Excellence, 20(3), 283-299.
When an organization improves its relationship between marketing, operations, and human resources, they become better equipped to disseminate CRM data, which can then lead the organization to make additional innovations, while taking responsive actions. (Ja-Shen, et al., 2009) refer to this dimension of CRM as the Information Technology (IT) or Customer-Focused Information Technology (CFIT) segment, which is the first of three dimensions of interest in their analysis that supports the operations of a company’s CRM processes. The second dimension of interest in (Ja-Shen, et al., 2009) study was referred to as Relationship Marketing (RM), which was identified as the root efforts of a CRM process that can help an organization manage and improve its new and existing relationships with its customers in order to increase customer satisfaction, all while creating additional long-term profitability. Finally, (Ja-Shen, et al., 2009) referred to the third dimension of interest in their study as Customer-Focused Organizational Climate (CFOC) or the human resource side, which deals with an organizations culture to accept, use, and build upon any CRM system in order to help the organization develop, maintain, and grow customer relationships.
(Ja-Shen, et al., 2009) empirical study found that together (marketing, operations, and human resources) with (CFIT, RM, and CFOC) the most common view of CRM as a marketing application or complement of a company’s information technology or CFIT should also include the other two dimensions (RM and CFOC). If an organization wants to excel in the global market it is imperative that more organizations focus not only on advancing their information technology through systems such as CRM but that they also need to use CRM system data to create additional programs that focus more on the retention of current customers (needs) and acquisition of new customers (expectations). Only then will more businesses develop deeper understandings of their customer bases, while being able to target and market more effectively, resulting in more value, satisfaction, and cross or up-selling possibilities.
While the concept of CRM is an increasingly popular and hot topic throughout the world, research into the systems effectiveness on increased market share, profitability, customer relationships, and satisfaction is rather limited. Therefore, (Ja-Shen, et al., 2009) analysis provide three important dimensions (1) RM, (2) CFIT, and (3) CFOC of Customer Relationship Management Effectiveness (CRME). In order to improve the understanding of CRM systems it is dimensions such as these that managers will need to consider as they are continuing to identify the strengths and weaknesses of these programs, so they can continue to retain, update, and analyze the mass amounts of data collected to develop a deeper understanding of customers needs and wants. More importantly, these factors are even more important for individuals that want to reduce costs, while finding new ways to increase sales, Return on Investments (ROI), or enhancing their business’s performance.
This analysis of CRM systems is yet another example of the type of benefits that this supply chain function can provide organizations that truly are looking to grow their business. Therefore, I will continue to provide additional updates into this niche market, as I continue to refine my research in hopes of finding the supply chain function that can contribute most to the additional growth of Small-to-Medium Enterprises (SMEs). Of course, your opinions are always welcome as I truly welcome any additional insights that you may be able to provide. Otherwise, keep smiling since it really does look good on you—Cheers!!!
References
Ja-Shen, C., Yen, H. J. R., Li, E. Y., & Ching, R. K. H. (2009). Measuring CRM effectiveness: Construct development, validation, and application of a process-oriented model. Total Quality Management & Business Excellence, 20(3), 283-299.
Thursday, March 3, 2011
Customer Relationship Management (CRM) Software, Applications, and Business Performance
Many different products, services, processes, and systems offered across the globe have had their own unique trials and tribulations throughout their existence. Customer Relationship Management (CRM) systems are one of those products that have had success along with failure in many of the world’s markets. As more companies continue to collect and access more customer data through programs such as CRM they will continue to increase their capabilities of using this data in order to fragment it into more sophisticated client messages through web based supply chains, mobile messaging, and ecommerce technologies. As a result of these new abilities and this newly constructed dependence through CRM implementation, those companies that encourage and promote the benefits to its employees will be the ones that create a cultural climate that fosters even more client centric innovations, while increasing organizational profitability. However, I found in (Ang & Buttle, 2006) literature review that many of these same CRM systems also tend to focus too much on the software itself or “a one-size fits all approach” versus the actual use or implementation, which is or has caused many CRM implementations to add to the increases in problems or in functionality and flexibility.
Considering both the negatives and positives of a CRM implementation, (Ang & Buttle, 2006) conducted a study throughout the Australian economy that focused on customer retention, customer acquisition, and customer development. The results of their study yielded three major insights
(1) First was that less than 40% of those companies surveyed throughout Australia were found to not use any type of CRM system (i.e. market analysis, lead generation, or customer profiling) to support the their operations or clients in any way
(2) Secondly, if an organization uses a CRM system as part of their overall strategic plan, they are more likely improve their retention, acquisition, and customer development rates significantly resulting in more return on investments and increases in company profitability
(3) Lastly, an organizations overall size seemed to determine the success rates with a CRM implementation (i.e. the larger the organization the more dissatisfied they were versus the smaller organizations who most of the time seemed more satisfied with CRM software)
From (Ang & Buttle, 2006) analysis and study of CRM systems in the Australia market there are still many organizations out there that are still undeveloped or lack a clear understanding of the real benefits that CRM can provide their company and long-term strategies. It is no secret that a company’s relationship with its customers cannot only strengthen the organization internally but also externally by providing its customers with superior service and added benefits. Additionally (Ang & Buttle, 2006) show readers that those organizations that want to achieve higher customer retention, customer acquisition, and customer development are the companies that want their customers to be more satisfied, thus increasing the organizations revenues and profitability. However, in order for these systems to gain more credibility manufacturers and vendors of these programs will have to build different systems for different companies based on size and location. This is exactly what I am looking for, as I continue to look for the key elements in the research that customers are demanding, which will allow me the ability to bridge any gaps in the literature in order to see more growth, enhanced business performance, and return on investments through CRM or other technological system implementation. Therefore, this article much like the others reviewed in previous posts are providing me with all the pieces that I will require to conduct a study, make recommendations, and contribute additionally to a niche market such as customer relationship management or enterprise resource planning.
Of course, I am always searching for other opinions, so if you got one let me hear it, as I continue upon in my research. Until next time-- Keep Smiling
References
Ang, L., & Buttle, F. (2006). CRM software applications and business performance. Journal of Database Marketing & Customer Strategy Management, 14(1), 4 - 16.
Considering both the negatives and positives of a CRM implementation, (Ang & Buttle, 2006) conducted a study throughout the Australian economy that focused on customer retention, customer acquisition, and customer development. The results of their study yielded three major insights
(1) First was that less than 40% of those companies surveyed throughout Australia were found to not use any type of CRM system (i.e. market analysis, lead generation, or customer profiling) to support the their operations or clients in any way
(2) Secondly, if an organization uses a CRM system as part of their overall strategic plan, they are more likely improve their retention, acquisition, and customer development rates significantly resulting in more return on investments and increases in company profitability
(3) Lastly, an organizations overall size seemed to determine the success rates with a CRM implementation (i.e. the larger the organization the more dissatisfied they were versus the smaller organizations who most of the time seemed more satisfied with CRM software)
From (Ang & Buttle, 2006) analysis and study of CRM systems in the Australia market there are still many organizations out there that are still undeveloped or lack a clear understanding of the real benefits that CRM can provide their company and long-term strategies. It is no secret that a company’s relationship with its customers cannot only strengthen the organization internally but also externally by providing its customers with superior service and added benefits. Additionally (Ang & Buttle, 2006) show readers that those organizations that want to achieve higher customer retention, customer acquisition, and customer development are the companies that want their customers to be more satisfied, thus increasing the organizations revenues and profitability. However, in order for these systems to gain more credibility manufacturers and vendors of these programs will have to build different systems for different companies based on size and location. This is exactly what I am looking for, as I continue to look for the key elements in the research that customers are demanding, which will allow me the ability to bridge any gaps in the literature in order to see more growth, enhanced business performance, and return on investments through CRM or other technological system implementation. Therefore, this article much like the others reviewed in previous posts are providing me with all the pieces that I will require to conduct a study, make recommendations, and contribute additionally to a niche market such as customer relationship management or enterprise resource planning.
Of course, I am always searching for other opinions, so if you got one let me hear it, as I continue upon in my research. Until next time-- Keep Smiling
References
Ang, L., & Buttle, F. (2006). CRM software applications and business performance. Journal of Database Marketing & Customer Strategy Management, 14(1), 4 - 16.
Wednesday, March 2, 2011
Why you Should Develop a Customer Relationship Management (CRM) Strategy at your Company?
With changing global trends like outsourcing, consolidation, mergers, and acquisitions many organizations are looking for new ways to manage collected data in order to identify new clients, potential disruptions, and other selling opportunities. One such process that offers a company different analyses tools is through the implementation of a system such as Customer Relationship Management (CRM). (Lassar, Lassar, & Rauseo, 2008) explain that those leaders that develop a better understanding of CRM systems now, along with some of the things CRM systems can and cannot do will be the ones to build a “strategic vision that integrates people and processes with technology to maximize a firm’s investment” (p. 68). It is this type of strategic thinking that will then allow for more employee buy-in, and value within and outside the organization.
CRM has been around since the 90s in various forms and has continued to change with the introduction of new technology; however, its main focus has not changed too much and that is to help managers collect, share, and analyze customer data in order to make better strategic decisions on pricing, customer needs, and new services. Alternatively, a simpler definition is that CRM allows managers and employees a way to view data from multiple sources, in different angles, throughout the company. According to (Lassar, et al., 2008) CRM technology has four distinct features (1) contact data, (2) demographic data, (3) transactional data, and (4) relationship data.
(1) Contact data- often referred to as the simplest form of data, contact data includes items such as name, address, position, etc, which help employees build better relationships with their clients while providing a better way to identify anticipate their needs or concerns
(2) Demographic data- this feature is often described as a clients attributes or characteristics (i.e. entity, geography, size, requirements, etc), which help managers profile and predict a current or potential clients profitability
(3) Transactional data- this CRM feature helps outline historical event such as outcome of a meeting, interaction, and account history, which can help managers effectively manage client relationships, personalities, motivations, and expectations
(4) Relationship data- this feature allows managers to identify potential client problems or concerns, in order to generate more referrals and higher retention
If an organization uses a CRM system correctly, they will be able to recognize the importance of their client demographics and become more equipped to uncover problems faster, build better relationships, obtain new referrals, and gain a competitive edge over their competition as a result. However, often this strategy is easier said, than done, as a major challenge with any CRM implementation is employee participation and adoption. Therefore, much like any technological implementation encouraging employee buy-in or by designing the business strategy first, an organization will be more equipped to train its employees on the technology value, which will ultimately enhance the business processes (Lassar, et al., 2008).
As highlighted by (Lassar, et al., 2008) and others in my previous posts, CRM implementation can help an organization develop a deeper understanding of the industries they serve, their markets, and their clients needs, which can result in a major competitive advantage in a very competitive and global market. Although some CRM implementations require extra time, energy, and effort those companies that embrace CRM as a true business strategy will be the ones to use such a technological system as a true solution in order to identify additional opportunities, while continuing to grow. Regardless of the decision or process used, a company must continue to look for the best way to analyze customer data, in order to find new ways to satisfy its current and potential customers, which CRM clearly does. In addition, and as I again have mentioned in multiple other posts, CRM is a hot topic that offers many businesses the opportunity to collect and analyze customer data for future sales, marketing, and business development campaigns. If CRM implementation is taken seriously and is done correctly this system process can yield many positive effects throughout an organization, while continuing to increase sales, enhance a business’s performance, all while creating more return on investment. Over the last several weeks, my research has continued to allow me to continue analyzing this one niche in order to understand what effects CRM is truly having on a company’s long-term strategic plans. As they say research doesn’t lie and so far…so good… on the quest of discovering the best technological systems for SMEs and MNCs to implement alike!!!
Of course, I am always open for comments and would love to hear your thoughts on CRM, ERP, etc., or any other business processes that are continuing to change the landscape of your organizational development. Until next time, keep smiling—Cheers!!!
Reference
Lassar, W., Lassar, S., & Rauseo, N. (2008). Developing a CRM strategy in your firm. Journal of Accountancy, 206(2), 68.
CRM has been around since the 90s in various forms and has continued to change with the introduction of new technology; however, its main focus has not changed too much and that is to help managers collect, share, and analyze customer data in order to make better strategic decisions on pricing, customer needs, and new services. Alternatively, a simpler definition is that CRM allows managers and employees a way to view data from multiple sources, in different angles, throughout the company. According to (Lassar, et al., 2008) CRM technology has four distinct features (1) contact data, (2) demographic data, (3) transactional data, and (4) relationship data.
(1) Contact data- often referred to as the simplest form of data, contact data includes items such as name, address, position, etc, which help employees build better relationships with their clients while providing a better way to identify anticipate their needs or concerns
(2) Demographic data- this feature is often described as a clients attributes or characteristics (i.e. entity, geography, size, requirements, etc), which help managers profile and predict a current or potential clients profitability
(3) Transactional data- this CRM feature helps outline historical event such as outcome of a meeting, interaction, and account history, which can help managers effectively manage client relationships, personalities, motivations, and expectations
(4) Relationship data- this feature allows managers to identify potential client problems or concerns, in order to generate more referrals and higher retention
If an organization uses a CRM system correctly, they will be able to recognize the importance of their client demographics and become more equipped to uncover problems faster, build better relationships, obtain new referrals, and gain a competitive edge over their competition as a result. However, often this strategy is easier said, than done, as a major challenge with any CRM implementation is employee participation and adoption. Therefore, much like any technological implementation encouraging employee buy-in or by designing the business strategy first, an organization will be more equipped to train its employees on the technology value, which will ultimately enhance the business processes (Lassar, et al., 2008).
As highlighted by (Lassar, et al., 2008) and others in my previous posts, CRM implementation can help an organization develop a deeper understanding of the industries they serve, their markets, and their clients needs, which can result in a major competitive advantage in a very competitive and global market. Although some CRM implementations require extra time, energy, and effort those companies that embrace CRM as a true business strategy will be the ones to use such a technological system as a true solution in order to identify additional opportunities, while continuing to grow. Regardless of the decision or process used, a company must continue to look for the best way to analyze customer data, in order to find new ways to satisfy its current and potential customers, which CRM clearly does. In addition, and as I again have mentioned in multiple other posts, CRM is a hot topic that offers many businesses the opportunity to collect and analyze customer data for future sales, marketing, and business development campaigns. If CRM implementation is taken seriously and is done correctly this system process can yield many positive effects throughout an organization, while continuing to increase sales, enhance a business’s performance, all while creating more return on investment. Over the last several weeks, my research has continued to allow me to continue analyzing this one niche in order to understand what effects CRM is truly having on a company’s long-term strategic plans. As they say research doesn’t lie and so far…so good… on the quest of discovering the best technological systems for SMEs and MNCs to implement alike!!!
Of course, I am always open for comments and would love to hear your thoughts on CRM, ERP, etc., or any other business processes that are continuing to change the landscape of your organizational development. Until next time, keep smiling—Cheers!!!
Reference
Lassar, W., Lassar, S., & Rauseo, N. (2008). Developing a CRM strategy in your firm. Journal of Accountancy, 206(2), 68.
Monday, February 28, 2011
Are e-Technologies such as Customer Relationship Management (CRM) changing how Organizations Market, Sell, and Provide Customer Service for their Products and/or Services?
Are e-Technologies such as Customer Relationship Management (CRM) continuing to change the ways that organizations market, sell, and provide customer service for their products and services? According to (Ross, 2005) Yes! In fact, (Ross, 2005) describes and provides some of the main functions of most CRM programs. CRM has three essential responsibilities (1) Marketing; (2) Sales, and (3) Service and collectively these three functions can help an organization improve on the best ways to provide its customers with better and/or expanded relationships, which in turn usually result in additional company profits. CRM has been around for quite some time but over the last several years, CRM programs have continued to be one of the hottest segments, as they continue to evolve due to the growing popularity of the internet and new computerized toolsets. As a result of these advances organizations are continuing to use new CRM programs to create even more visibility of their products and services, while attracting, retaining, and enhancing new and/or existing customer bases.
It can be argued that sales is the most important function of a CRM program but how can this be when the program is not the one who actually makes the sale? Thus, (Ross, 2005) suggests that a salesperson’s role should become even more important than before, as CRM programs advance and more sales professionals develop more defined and mutually supportive relationships between their companies, with suppliers, and customers. This now changing sales force paradigm, assisted by CRM programs will more than likely continue to broaden both selling and buying habits of all small to large organizations in the years ahead. For that reason (Ross, 2005) further defines the major components and functionalities of CRM and Sales Force Automation (SFA)
(1) Contact Management- one of the first components of CRM, which enables a company to manage prospect information, while providing follow-up and tracking information
(2) Account Management- this segment allows employees and managers useful ways to effectively market products to that of customer wants
(3) Sales Management- this tool was designed to help employees keep track of a set of sales activities in order to promote sales, while providing reminders and greater productivity
(4) Opportunity Management- this segment is often referred to as the pipeline of potential customers that highlights a new opportunity, those involved, potential revenue, and proposed closing date for a product or service
(5) Quotation Management- this component assists individuals in the configuration of pricing, inventory, and process availability for a prospective customer
(6) Knowledge Management- tools that assist in the standardizing and automation of the sales process where information such as policies, presentation materials, contracts, etc. can be stored and used for further analysis and reporting
Once a company understands some if not all of these segments, which are important to their continued long-term growth they will be more equipped to handle any problems that may occur after a sale. Once considered a drain on profitability of a company’s revenues, customer service through investments in programs such as CRM has now become a necessity that creates growth, hence a vital link between an organization and other supply chain processes. (Ross, 2005) leaves readers with six metrics developed by (Giffler, 1998; Pechi, 2000):
• On average a company will lose half its customers over a 5-year timeframe
• If a company reduces defections by 5%, then they could boost profits from 25-85%
• An organization typically spends 5x more on customer acquisition than on retention
• 65-85% percent of customers who defect do so without being dissatisfied with their former supplier
• A completely satisfied customer is 6x more likely to make an additional purchase than a satisfied customer
• Happy customers tend to tell five people about their experience versus a dissatisfied customer who will tell at least 9
Over the last few weeks, I have continued my examination of CRM, which is an important element of SCM, enhanced business performance, and long-term growth. Much like the previous works examined (Ross, 2005) does an excellent job at defining some of the main reasons that leaders need to consider and develop this element when constructing a long-term strategic plan. In the changing landscape of business and supply chain processes technology that assists employees with buying, selling, etc. will do nothing but improve organizational efficiency and effectiveness, while providing additional resources that allow more interaction with customers and the marketplace. Therefore, CRM has and will continue to be my emphasis of analysis over the next several weeks, as I continue to develop a niche subject for business leaders to consider in finding a better way to manage and utilize collected data to their advantage, which is part of the larger part of my Doctoral research.
Of course any opinions, suggestions, or thoughts as to the importance of this or other supply chain concepts is also appreciated, as I continue to look for the most effective ways to build sales, increase awareness, and create additional long-term growth for SMEs and MNCs alike!
References
Ross, D. F. (2005). E-CRM from a supply chain management perspective. Information Systems Management, 22(1), 37.
It can be argued that sales is the most important function of a CRM program but how can this be when the program is not the one who actually makes the sale? Thus, (Ross, 2005) suggests that a salesperson’s role should become even more important than before, as CRM programs advance and more sales professionals develop more defined and mutually supportive relationships between their companies, with suppliers, and customers. This now changing sales force paradigm, assisted by CRM programs will more than likely continue to broaden both selling and buying habits of all small to large organizations in the years ahead. For that reason (Ross, 2005) further defines the major components and functionalities of CRM and Sales Force Automation (SFA)
(1) Contact Management- one of the first components of CRM, which enables a company to manage prospect information, while providing follow-up and tracking information
(2) Account Management- this segment allows employees and managers useful ways to effectively market products to that of customer wants
(3) Sales Management- this tool was designed to help employees keep track of a set of sales activities in order to promote sales, while providing reminders and greater productivity
(4) Opportunity Management- this segment is often referred to as the pipeline of potential customers that highlights a new opportunity, those involved, potential revenue, and proposed closing date for a product or service
(5) Quotation Management- this component assists individuals in the configuration of pricing, inventory, and process availability for a prospective customer
(6) Knowledge Management- tools that assist in the standardizing and automation of the sales process where information such as policies, presentation materials, contracts, etc. can be stored and used for further analysis and reporting
Once a company understands some if not all of these segments, which are important to their continued long-term growth they will be more equipped to handle any problems that may occur after a sale. Once considered a drain on profitability of a company’s revenues, customer service through investments in programs such as CRM has now become a necessity that creates growth, hence a vital link between an organization and other supply chain processes. (Ross, 2005) leaves readers with six metrics developed by (Giffler, 1998; Pechi, 2000):
• On average a company will lose half its customers over a 5-year timeframe
• If a company reduces defections by 5%, then they could boost profits from 25-85%
• An organization typically spends 5x more on customer acquisition than on retention
• 65-85% percent of customers who defect do so without being dissatisfied with their former supplier
• A completely satisfied customer is 6x more likely to make an additional purchase than a satisfied customer
• Happy customers tend to tell five people about their experience versus a dissatisfied customer who will tell at least 9
Over the last few weeks, I have continued my examination of CRM, which is an important element of SCM, enhanced business performance, and long-term growth. Much like the previous works examined (Ross, 2005) does an excellent job at defining some of the main reasons that leaders need to consider and develop this element when constructing a long-term strategic plan. In the changing landscape of business and supply chain processes technology that assists employees with buying, selling, etc. will do nothing but improve organizational efficiency and effectiveness, while providing additional resources that allow more interaction with customers and the marketplace. Therefore, CRM has and will continue to be my emphasis of analysis over the next several weeks, as I continue to develop a niche subject for business leaders to consider in finding a better way to manage and utilize collected data to their advantage, which is part of the larger part of my Doctoral research.
Of course any opinions, suggestions, or thoughts as to the importance of this or other supply chain concepts is also appreciated, as I continue to look for the most effective ways to build sales, increase awareness, and create additional long-term growth for SMEs and MNCs alike!
References
Ross, D. F. (2005). E-CRM from a supply chain management perspective. Information Systems Management, 22(1), 37.
Saturday, February 19, 2011
Advanced Planning Systems (APS) as a Supply Chain Optimization Tool?
Throughout the last decade, organizational leaders have continued to look for the best solutions to help solve many organizational procurement, production, marketing, administration, sales, etc. problems. As a result of such exploration, many technological systems have been developed to help organizational leaders plan strategically for many unknown future occurrences. In a recent article (Jonsson, Kjellsdotter, & Rudberg, 2007) discussed one such process termed “Advanced Planning Systems (APS)” (i.e. often referred to as supply chain optimization software, as it helps create near optimal organizational plans); which, in turn, helps solve some of the organizational problems and supply chain issues mentioned earlier and in previous posts. By explaining the importance of advanced planning systems and/or software (Jonsson, et al., 2007) focused their analysis on five specific variables (1) Complex planning environment, (2) Design and planning model, (3) Data planning, (4) Organizational planning, and (5) Effective planning. From the five identified variables, a framework developed and a conclusion followed, which highlighted the effects these variables played on the long-term functionality of an organization and different supply chain channels. From the empirical evidence gathered, the identified variables, their relation to supply chain optimization, and the model, (Jonsson, et al., 2007) recommended, several further directions researchers could take in expanding upon their work in order to fill any potential gaps, which are as follows. (1) What possibilities do advanced planning systems play in different organizational planning activities? (2) How does the developed model optimize organizational performance? (3) Can the data collection process effect advance planning systems, what other methods might be implemented? (4) How can an organization achieve positive planning throughout the supply chain and integrate these positive approaches into their daily structures?
It is no secret that in today’s rapidly changing business environment, organizations are continuing to examine different ways that they can grow relationships and improve efficiency with suppliers, their customers, and employees. (Jonsson, et al., 2007) purposed Advanced Planning Systems as a concept and analyzed its effects in three model companies. Although the study focused mainly on supply chain effectiveness and procurement, after the research the authors were able to conclude that this concept is easily transferable and can be used as a support tool, or help solve other issues in other parts of most organizations. Therefore, it only makes sense that when leaders discuss the different ways to enhance organizational systems (i.e. SCM, CRM, ERP, EDI, etc) that they should consider tactical or strategic systems such as APS. In turn, those researchers that are interested in a model that will help develop strategic and/or tactical planning processes in software implementation throughout an organization they should also consider APS.
APS is yet another important tool available to organizational leaders in order to make better purchasing decisions, or forecasts, while developing better ways to plan and schedule throughout the supply chain. This is my first report on APS but like the other concepts (i.e. SCM, ERP, CRM, and EDI) that I have been discussing is an important topic for me to expand upon, as I continue to seek the most effective methods for supply chain optimization through technological innovations. Therefore, in the weeks and months ahead I will continue to dive into this topic more, well reporting my findings in hopes of other expert opinions. Nevertheless, if you have some please share, as this is the best way to learn! Until then and as usual keep smiling!
Reference
Jonsson, P., Kjellsdotter, L., & Rudberg, M. (2007). Applying advanced planning systems for supply chain planning: three case studies. International Journal of Physical Distribution & Logistics Management, 37(10), 816.
It is no secret that in today’s rapidly changing business environment, organizations are continuing to examine different ways that they can grow relationships and improve efficiency with suppliers, their customers, and employees. (Jonsson, et al., 2007) purposed Advanced Planning Systems as a concept and analyzed its effects in three model companies. Although the study focused mainly on supply chain effectiveness and procurement, after the research the authors were able to conclude that this concept is easily transferable and can be used as a support tool, or help solve other issues in other parts of most organizations. Therefore, it only makes sense that when leaders discuss the different ways to enhance organizational systems (i.e. SCM, CRM, ERP, EDI, etc) that they should consider tactical or strategic systems such as APS. In turn, those researchers that are interested in a model that will help develop strategic and/or tactical planning processes in software implementation throughout an organization they should also consider APS.
APS is yet another important tool available to organizational leaders in order to make better purchasing decisions, or forecasts, while developing better ways to plan and schedule throughout the supply chain. This is my first report on APS but like the other concepts (i.e. SCM, ERP, CRM, and EDI) that I have been discussing is an important topic for me to expand upon, as I continue to seek the most effective methods for supply chain optimization through technological innovations. Therefore, in the weeks and months ahead I will continue to dive into this topic more, well reporting my findings in hopes of other expert opinions. Nevertheless, if you have some please share, as this is the best way to learn! Until then and as usual keep smiling!
Reference
Jonsson, P., Kjellsdotter, L., & Rudberg, M. (2007). Applying advanced planning systems for supply chain planning: three case studies. International Journal of Physical Distribution & Logistics Management, 37(10), 816.
Wednesday, February 16, 2011
Supply Chain Management (SCM) and other Technological System Relationships (i.e. CRM, ERP, eCommerce, etc)
Over the last decade, organizations and researchers have been looking at and evaluating the entire supply chain network in hopes of being able to predict future trends within the industry. As such,(Giunipero, Hooker, Joseph-Matthews, Yoon, & Brudvig, 2008) are part of those researchers that have chosen to evaluate past literature in hopes of determining what future development(s) may occur within the network. In fact, in their latest study they offer readers an extensive review of 405 articles, focused around current and/or existing trends along with the identification of any gaps in the literature. From this analysis, the authors hoped too later conceptualize the most studied categories, along with the identification of any relationships or links for later researchers to expand upon.
From the research Giunipero, et al. (2008) were able to identify a five year peek period from 2002-2006 that contained the most frameworks, challenges, and trends within the supply chain. From these identified frameworks, challenges, and trends the authors were then able to draw a correlation between two other variables (1) information technology and (2) e-commerce. It is this correlation between the (frameworks, challenges, and trends) and (information technology and e-commerce) that then becomes that much more important in helping solve global supply chain issues heading into the future.
Additionally, the conducted research also offered Giunipero, et al. (2008) a historical analysis of some of the shortcomings within the evolution of the supply chain network. The identified shortcomings or “gaps” and recommendation(s) for future studies fell into the following five categories
(1) Most of the reviewed research sample sizes were too small- the authors were able to determine that most of the studies had small sample size(s) and recommend that future studies examine multi-tier relationships, which then will increase future sample sizes.
(2) Most of the research studies were one-tie investigations- like small sample sizes, one-tier investigations between multiple suppliers, was not completely addressed, which means that future studies could place additional emphasis on examining internal and external multi-tier relationships to fully understand supply chain efficiencies and inefficiencies.
(3) There were limited methodologies used- several of the evaluated studies limited their data analysis through qualitative research and non-descriptive analysis, when perhaps a more practical approach would have been to use multiple regression or ANOVA, thus the authors recommend quantitative studies in future research.
(4) There was a lack of longitudinal research studies- several of the studies were conducted at a specific point in time, where it might have been more beneficial to spread the research out over different industries. The authors noted that although this type of research was more expensive it could help develop megatrends throughout the supply chain.
(5) Most of the studies were limited in International reach- upon review the authors were able to determine that most authors lacked the element of globalization. As companies in different countries continue to operate with one another this area will be one of the major avenues for future supply chain studies.
Giunipero, et al. (2008) extensive review of literature combined with several conceptual maps and a study showed several potential relationships that might exist between different variables throughout the supply chain network, which are invaluable for those researchers interested in this subject matter. In addition, Giunipero, et al. (2008) were able to clearly point out in this article any “gaps” in the literature and give recommendations and advice for the identification of feature trends, research, and analysis, which are of particular interest to me in my continued analysis of the supply chain and technological systems. Of which, several possible combinations and correlations were identified that would help contribute to additional work of past-future frameworks, challenges, and trends along with the continued advancement of information technology with e-commerce (some of the same variables of interest for my Dissertation). Finally, Giunipero, et al. (2008) stated that this topic should continue to “receive increased attention from academics” now and later, as information technology and e-commerce continue to revolutionize the supply chain. This is exactly the type of opinion; I seek, as I continue to examine the supply chain, along with other technological systems (i.e. CRM, ERP, etc) that I have/am continuing to report on in my BLOG, as well as in my other Doctoral work.
This is my first report on SCM but a very important one as CRM, ERP, and other information technology systems are key drivers in long-term growth and management of the supply chain. Of course, I am always seeking other opinions and advice, so if you got any, please drop me a line and let me know your thoughts, until then keep smiling.
Reference
Giunipero, L. C., Hooker, R. E., Joseph-Matthews, S., Yoon, T. E., & Brudvig, S. (2008). A decade of SCM literature: Past, present, and future implications. Journal of Supply Chain Management: A Global Review of Purchasing & Supply, 44(4), 66-86.
From the research Giunipero, et al. (2008) were able to identify a five year peek period from 2002-2006 that contained the most frameworks, challenges, and trends within the supply chain. From these identified frameworks, challenges, and trends the authors were then able to draw a correlation between two other variables (1) information technology and (2) e-commerce. It is this correlation between the (frameworks, challenges, and trends) and (information technology and e-commerce) that then becomes that much more important in helping solve global supply chain issues heading into the future.
Additionally, the conducted research also offered Giunipero, et al. (2008) a historical analysis of some of the shortcomings within the evolution of the supply chain network. The identified shortcomings or “gaps” and recommendation(s) for future studies fell into the following five categories
(1) Most of the reviewed research sample sizes were too small- the authors were able to determine that most of the studies had small sample size(s) and recommend that future studies examine multi-tier relationships, which then will increase future sample sizes.
(2) Most of the research studies were one-tie investigations- like small sample sizes, one-tier investigations between multiple suppliers, was not completely addressed, which means that future studies could place additional emphasis on examining internal and external multi-tier relationships to fully understand supply chain efficiencies and inefficiencies.
(3) There were limited methodologies used- several of the evaluated studies limited their data analysis through qualitative research and non-descriptive analysis, when perhaps a more practical approach would have been to use multiple regression or ANOVA, thus the authors recommend quantitative studies in future research.
(4) There was a lack of longitudinal research studies- several of the studies were conducted at a specific point in time, where it might have been more beneficial to spread the research out over different industries. The authors noted that although this type of research was more expensive it could help develop megatrends throughout the supply chain.
(5) Most of the studies were limited in International reach- upon review the authors were able to determine that most authors lacked the element of globalization. As companies in different countries continue to operate with one another this area will be one of the major avenues for future supply chain studies.
Giunipero, et al. (2008) extensive review of literature combined with several conceptual maps and a study showed several potential relationships that might exist between different variables throughout the supply chain network, which are invaluable for those researchers interested in this subject matter. In addition, Giunipero, et al. (2008) were able to clearly point out in this article any “gaps” in the literature and give recommendations and advice for the identification of feature trends, research, and analysis, which are of particular interest to me in my continued analysis of the supply chain and technological systems. Of which, several possible combinations and correlations were identified that would help contribute to additional work of past-future frameworks, challenges, and trends along with the continued advancement of information technology with e-commerce (some of the same variables of interest for my Dissertation). Finally, Giunipero, et al. (2008) stated that this topic should continue to “receive increased attention from academics” now and later, as information technology and e-commerce continue to revolutionize the supply chain. This is exactly the type of opinion; I seek, as I continue to examine the supply chain, along with other technological systems (i.e. CRM, ERP, etc) that I have/am continuing to report on in my BLOG, as well as in my other Doctoral work.
This is my first report on SCM but a very important one as CRM, ERP, and other information technology systems are key drivers in long-term growth and management of the supply chain. Of course, I am always seeking other opinions and advice, so if you got any, please drop me a line and let me know your thoughts, until then keep smiling.
Reference
Giunipero, L. C., Hooker, R. E., Joseph-Matthews, S., Yoon, T. E., & Brudvig, S. (2008). A decade of SCM literature: Past, present, and future implications. Journal of Supply Chain Management: A Global Review of Purchasing & Supply, 44(4), 66-86.
Sunday, February 13, 2011
Customer Relationship Management (CRM) as an Important Business Process in Supply Chain Management (SCM)
As mentioned in my previous post on Feb. 12th, 2011 (Wu, 2010) described some of the ways CRM has/is becoming a critical part of organizational and/or strategic planning, as competitive pressures increase and customers continue to defect from large and small organizations alike. Expanding on some of these same principles (Lambert, 2010) also examined some of the reasons why some organizations succeed while others continue to fail at managing this business process, especially in regards to Supply Chain Management (SCM). In fact, (Lambert, 2010) explains that CRM and SCM provide four important linkages (See Figure 1.3) within and throughout the supply chain, which all result in increased profitability of one or multiple customers over any given time.
(Figure is Omitted from this post but available at http://www.image.seventimesseven.com/CRM-and-Supplier-Relationship-Management.jpg) Figure 1.3. CRM and Supplier Relationship Management
As noted in Figure 1.3, the success or failure of a CRM process is growth and/or profitability and if harnessed correctly then CRM software could provide managers within a company the ability to gather more data from more customers, while providing customized products and/or services that should increase customer relationships and loyalty. On the other hand, (Lambert, 2010) also explains that there are also four main reason that CRM implementation could fail or decrease growth and/or profitability. The first is implementing a CRM system before a clear strategy is created. The second is implementing a CRM system before preparing and/or embracing the organization for such an advancement. The third is assuming that a CRM system is the answer (i.e. the more is better approach) and finally not understanding how to build relationships correctly or with the wrong clients. As far as creating a strategy for CRM implementation success (Lambert, 2010) identified five strategic sub-processes that are extremely valuable.
(1) Review corporate and marketing strategies- The CRM team should consistently review the corporate and/or marketing strategies to make sure that the company now and later continues to target the correct markets.
(2) Identify criteria for segmenting customers- This sub-process of CRM should help identify the criterion that is used to segment different customers in different markets.
(3) Provide a clear set of guidelines for product and/or service agreements- In this sub-process the CRM team should develop a set of guidelines that identify the revenue and/or costs associated with certain product or services.
(4) Develop a set of frameworks or metrics- This sub-process involves identifying the main areas of interest in regards to specific customers on the company’s profitability.
(5) Develop a set of guidelines to share- The CRM team should use this sub-process to develop specific processes that are being ignored, which could create win-win solutions for both the company and customer if solved.
In addition, to the five sub-processes (Lambert, 2010) also discusses seven operational sub-processes that closely relate to the first five discussed strategic processes, however Lambert adds (1) the need to continue monitoring customer accounts internally for any abnormal trends and (2) the additional need to measure performance by generating profitability reports for both internal and external analysis.
If an organization prepares properly by following some if not all of these strategic and operational steps described by Lambert in a CRM system implementation, then the chances of growing profits, relationships, and effectiveness in a Business-to-Business (B2B) or Business-to-Customer (B2C) setting are greatly increased. However, the ultimate measure of success in a CRM implementation across the enterprise and throughout the supply chain is the financial growth of the entire network as CRM systems should be a more effective way to migrate everyone to the most successful and efficient structures.
As discussed by (Lambert, 2010) there are many reasons that CRM implementation succeeds as well as many reasons why CRM implementation fails. Although the main people responsible for a success (i.e. information technology, sales, marketing, etc), there is no reason to suggest or believe that other organizational leaders in finance, logistics, research, administration, etc should not contribute to a successful launch or re-invention. As with any successful process, usually it is not only one person responsible for success but also the entire team as a whole. If more companies embrace this frame of thinking, then more companies will likely benefit from a CRM implementation or any technological advancement that an organization is considering in order to build, grow, and cultivate relationships that will last a lifetime. Relying on technology alone is not enough and those who embrace this frame of thinking will ultimately end up looking at the project in the end as what went wrong. Therefore, in order to avoid that thinking later, remember to strategically plan the work and work the plan. This is what I am doing now, as I continue to research and analyze the best and most efficient ways or systems such as CRM that organizations can utilize in order to create better Return on Investment (ROI), enhanced business performance, or additional long-term growth as I prepare to enter the applied research phase of my Doctoral work. This is my second report on CRM analysis, which is in agreement with the findings of (Wu, 2010), thus making this another important piece of my Dissertation, and as always I warmly welcome any comments, questions, or suggestions
References
Lambert, D., M. (2010). Customer relationship management as a business process. The Journal of Business & Industrial Marketing, 25(1), 4.
Wu, Y. (2010). Applying the strategic approach to assess customer relationship management. International Journal of Organizational Innovation (Online), 2(3), 186.
(Figure is Omitted from this post but available at http://www.image.seventimesseven.com/CRM-and-Supplier-Relationship-Management.jpg) Figure 1.3. CRM and Supplier Relationship Management
As noted in Figure 1.3, the success or failure of a CRM process is growth and/or profitability and if harnessed correctly then CRM software could provide managers within a company the ability to gather more data from more customers, while providing customized products and/or services that should increase customer relationships and loyalty. On the other hand, (Lambert, 2010) also explains that there are also four main reason that CRM implementation could fail or decrease growth and/or profitability. The first is implementing a CRM system before a clear strategy is created. The second is implementing a CRM system before preparing and/or embracing the organization for such an advancement. The third is assuming that a CRM system is the answer (i.e. the more is better approach) and finally not understanding how to build relationships correctly or with the wrong clients. As far as creating a strategy for CRM implementation success (Lambert, 2010) identified five strategic sub-processes that are extremely valuable.
(1) Review corporate and marketing strategies- The CRM team should consistently review the corporate and/or marketing strategies to make sure that the company now and later continues to target the correct markets.
(2) Identify criteria for segmenting customers- This sub-process of CRM should help identify the criterion that is used to segment different customers in different markets.
(3) Provide a clear set of guidelines for product and/or service agreements- In this sub-process the CRM team should develop a set of guidelines that identify the revenue and/or costs associated with certain product or services.
(4) Develop a set of frameworks or metrics- This sub-process involves identifying the main areas of interest in regards to specific customers on the company’s profitability.
(5) Develop a set of guidelines to share- The CRM team should use this sub-process to develop specific processes that are being ignored, which could create win-win solutions for both the company and customer if solved.
In addition, to the five sub-processes (Lambert, 2010) also discusses seven operational sub-processes that closely relate to the first five discussed strategic processes, however Lambert adds (1) the need to continue monitoring customer accounts internally for any abnormal trends and (2) the additional need to measure performance by generating profitability reports for both internal and external analysis.
If an organization prepares properly by following some if not all of these strategic and operational steps described by Lambert in a CRM system implementation, then the chances of growing profits, relationships, and effectiveness in a Business-to-Business (B2B) or Business-to-Customer (B2C) setting are greatly increased. However, the ultimate measure of success in a CRM implementation across the enterprise and throughout the supply chain is the financial growth of the entire network as CRM systems should be a more effective way to migrate everyone to the most successful and efficient structures.
As discussed by (Lambert, 2010) there are many reasons that CRM implementation succeeds as well as many reasons why CRM implementation fails. Although the main people responsible for a success (i.e. information technology, sales, marketing, etc), there is no reason to suggest or believe that other organizational leaders in finance, logistics, research, administration, etc should not contribute to a successful launch or re-invention. As with any successful process, usually it is not only one person responsible for success but also the entire team as a whole. If more companies embrace this frame of thinking, then more companies will likely benefit from a CRM implementation or any technological advancement that an organization is considering in order to build, grow, and cultivate relationships that will last a lifetime. Relying on technology alone is not enough and those who embrace this frame of thinking will ultimately end up looking at the project in the end as what went wrong. Therefore, in order to avoid that thinking later, remember to strategically plan the work and work the plan. This is what I am doing now, as I continue to research and analyze the best and most efficient ways or systems such as CRM that organizations can utilize in order to create better Return on Investment (ROI), enhanced business performance, or additional long-term growth as I prepare to enter the applied research phase of my Doctoral work. This is my second report on CRM analysis, which is in agreement with the findings of (Wu, 2010), thus making this another important piece of my Dissertation, and as always I warmly welcome any comments, questions, or suggestions
References
Lambert, D., M. (2010). Customer relationship management as a business process. The Journal of Business & Industrial Marketing, 25(1), 4.
Wu, Y. (2010). Applying the strategic approach to assess customer relationship management. International Journal of Organizational Innovation (Online), 2(3), 186.
Saturday, February 12, 2011
Customer Relationship Management (CRM) as a Strategic Approach
Throughout the last decade, organizations have continued to look for ways to create new strategies in order to retain customers, while improving service quality based on new competitive measures. One such way these organizations are creating, these new strategies are through advancements in technological programs such as CRM. (Wu, 2010) describes CRM as “a 360 degree projection which requires not only technology implementation but also strategic making and other integration in an organization” (p. 187). Additionally, CRM can be defined as those tools or technological advancements that help organizational leaders manage, develop, or assist employees in the day-to-day interactions with customers, suppliers, and other business partners. Wu quotes Giga (2001) who discovered that only 30.7% of companies worldwide actually consider CRM as a strategic tool that can help their respected organizations achieve some of their long-term goals, which in turn makes it very difficult for others to adopt this as a strategic initiative, hence why some 70% of companies overall fail to implement or utilize CRM correctly. However, if CRM is used correctly within an organization the research shows that companies are better able to build relationships (internally or externally), target new customers more effectively, and assist others by providing consultative solutions for a distinct product or service. There are four characteristics of a well-defined CRM system
(1) A CRM system that provides a 1-to-1 solution to a customer’s needs which will enhance communication, relationships, satisfaction, and service.
(2) A CRM system that provides a company’s sales force with a better way to track client interactions while providing useful information for follow-up, repeat, or future sales.
(3) A CRM system that allows employees to warehouse, mine, and customize data, which helps a company, stay ahead of its competitors.
(4) A CRM system that provides predictable sales demand, growth, and prospects in order to meet the needs of a company’s current and future clients.
(Wu, 2010) found that those organizational leaders, which understood the four main characteristics of CRM systems, would be the ones that could take advantage of its competitors, thus creating a competitive advantage within any given industry. However, before any CRM system implementation (Wu, 2010) suggests that these same organizational leaders also carefully analyze five important aspects referred to as “Porter’s Five Forces (1) Bargaining power of customers, (2) Threat of substitutes, (3) Threat of new entrants, (4) Extent of rivalry between existing competitors, and (5) Power of suppliers” (p. 195).
(Wu, 2010) provides readers with some of the reasons that CRM system implementation succeeds, while at other times fails because of the lack of understanding about what CRM actually is. The fact of the matter is many CRM system implementations fail because organizational leaders lack experience, knowledge, and a clear strategic vision of what they can or cannot do with such a system. Therefore, before a company decides to invest or re-invest in a CRM system it is clear that more organizational leaders need to develop a clear-cut strategy to adopt in order to avoid any potential risks that such a system implementation may cause. Although there are tremendous, amounts of benefits that CRM systems can provide organizations (i.e. reduced costs, increased customer satisfaction, along with gaining new and retaining other customers) a proper system implementation will only occur if leaders strategically plan for its integration and use. This is the beginning of my in depth analysis of one of the most important variables that make up the foundation of my Dissertation and I look forward to exploring this concept more and reporting my results in the weeks if not months ahead.
Reference
Wu, Y. Applying the strategic approach to assess customer relationship management. International Journal of Organizational Innovation (Online), 2(3), 186.
(1) A CRM system that provides a 1-to-1 solution to a customer’s needs which will enhance communication, relationships, satisfaction, and service.
(2) A CRM system that provides a company’s sales force with a better way to track client interactions while providing useful information for follow-up, repeat, or future sales.
(3) A CRM system that allows employees to warehouse, mine, and customize data, which helps a company, stay ahead of its competitors.
(4) A CRM system that provides predictable sales demand, growth, and prospects in order to meet the needs of a company’s current and future clients.
(Wu, 2010) found that those organizational leaders, which understood the four main characteristics of CRM systems, would be the ones that could take advantage of its competitors, thus creating a competitive advantage within any given industry. However, before any CRM system implementation (Wu, 2010) suggests that these same organizational leaders also carefully analyze five important aspects referred to as “Porter’s Five Forces (1) Bargaining power of customers, (2) Threat of substitutes, (3) Threat of new entrants, (4) Extent of rivalry between existing competitors, and (5) Power of suppliers” (p. 195).
(Wu, 2010) provides readers with some of the reasons that CRM system implementation succeeds, while at other times fails because of the lack of understanding about what CRM actually is. The fact of the matter is many CRM system implementations fail because organizational leaders lack experience, knowledge, and a clear strategic vision of what they can or cannot do with such a system. Therefore, before a company decides to invest or re-invest in a CRM system it is clear that more organizational leaders need to develop a clear-cut strategy to adopt in order to avoid any potential risks that such a system implementation may cause. Although there are tremendous, amounts of benefits that CRM systems can provide organizations (i.e. reduced costs, increased customer satisfaction, along with gaining new and retaining other customers) a proper system implementation will only occur if leaders strategically plan for its integration and use. This is the beginning of my in depth analysis of one of the most important variables that make up the foundation of my Dissertation and I look forward to exploring this concept more and reporting my results in the weeks if not months ahead.
Reference
Wu, Y. Applying the strategic approach to assess customer relationship management. International Journal of Organizational Innovation (Online), 2(3), 186.
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