Introductory paragraph that defines “strategic CRM
Strategic CRM describes a form of customer relationship management where businesses prioritizes customer’s needs over everything else. Strategic CRM designs superior value proposition for the customer base while relying on information collected and segregated relating to customer’s market trends and preferences (Nykamp, 2019). CRM recognizes the customer as an important element for businesses survival and competitive edge. In strategic CRM, the businesses pursues information about customers consistently to understand the dynamic customer requirements and develop agile strategies that enables the organization to adapt to them. Strategic CRM is a form of customer orientation that concentrates its attention on knowing the customer and utilizing the acquired knowledge to improve and customize customer interactions with the end goal of maintaining a long term business-customer relationship.
CRM strategy articles
The first article addresses the CRM in respect to its ability to create dynamic capabilities in business and innovation. The reading articulates that businesses which aspire to be competitive and achieve superior performance ought to integrate strategic CRM system into its processes. The authors allude that strategic CRM ought to be an organization’s overall strategy. Organizations that have implemented CRM principles realize optimized profitability, and achieve superior customer satisfaction (Pedron, Picoto, Colaco & Araújo, 2018). According to the reading, strategic CRM realizes value creation not only to an organization but also to the pool of customers. As the article explains, businesses today have increasingly adopted CRM to improve operational performance, broaden market share and boost profits. The article however expresses concerns that businesses despite investing in expensive CRM systems have not managed to exploit its full potential. Some of reasons behind the failure include lack of understanding of dynamism of CRM strategy and businesses processes (Pedron et al., 2018). Organizations ought to immerse themselves in a learning process to leverage on the adoption of strategic CRM. Doing so exposes the businesses to benefits such as improved innovation capability.
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The second article explores the strategic CRM adoption in terms of value focussed objectives. The research undertaken intend to offer a theoretical basis for strategizing the incorporation of CRM system in a business processes. According to the article, approximately 60% of CRM adoption by organizations fail below company expectations. Among the businesses that had attempted to adopt strategic CRM, 70% of them realized no visible improvement. Some even noted a decline in businesses productivity after adoption of the CRM system. The article cites several reasons behind the failure to realize CRM benefits. They include limited strategic planning spectrum and unclear organization objectives for CRM integration into an organization’s processes (Pedron eta al., 2016). The article authors claim that adoption of strategic CRM improves shareholder’s value and results to creation of appropriate relationships a businesses’ customer segments. CRM according to the reading improves a company’s bottom line and makes customer relationships efficient and effective.
Why CRM strategies are iterative processes
Customer Relationship Strategies are thought to be iterative since CRM principle elements are linked to each other. The tenets that form the CRM strategies can be developed from each other hence iterative. For example, technology can drive strategy and the processes influences outcomes on skill sets while the tactics can be designed to make use of technology. The CRM strategy links together to form a web of iterative interaction. The five areas which are the foundations of CRM, that is, strategy processes, tactics, technology and skill sets ought to be allowed to work together and drive one another hence can be said to be iterative. CRM strategies ought to consider CRM implementation as a series of interlinked small CRM projects that should include continuous refinements.
Why Customer Relationship Management strategy must be aligned to the organization's mission, purpose and business strategies
CRM strategy ought to be aligned to an organization’s mission and purpose to enable the strategy produce consistent results about an organization. Aligning the CRM strategy to businesses strategies allows a seamless and successful implementation of CRM tenets. Aligning the CRM to an organization mission helps eliminate potential problems down the line. An aligned CRM strategy enables workers in the entire organization to relate to it better and work towards realizing a common gaol (Skoumpopoulou & Franklin, 2019). The likelihood of realizing CRM end objectives is high due to joint efforts and shared objectives which the entire organization works towards.
Why strategic CRM is important to small business owners and entrepreneurs
CRM is an important element in client management. Businesses and entrepreneurs can utilize CRM to acquire an improved client base visibility and therefore come up with tactics necessary to realize businesses profitability. CRM is key in tracking businesses profitability. The strategy can for example ease up the accountant’s work since they would not need to follow the revenue trail (Skoumpopoulou & Franklin, 2019). CRM helps entrepreneurs automate internal businesses processes previously handled manually. This would enable the businesses to comply with federal and industry standards. Adoption of CRM enables businesses owners to improve customer service. Integration of strategic CRM puts a company’s workers at a better position to address customer grievances and concerns such as tracking customer complaints leading to overall customer satisfaction.
Conclusion
I have acquired insights that strategic CRM entails putting customer needs first and having the urge learn more about the customer changes. I have learned that to exploit the full potential of strategic CRM, business have to align the businesses stagey and an organization mission to the CRM principles. Strategic CRM platforms focus on improving customer relationship by tracking and analyzing customer’s interactions which ought to include all departments in an organization.
References
Nykamp, M. (2019). The Customer Differential the Complete Guide to Implementing Customer Relationship Management . American Management Association.
Pedron, C. D., Picoto, W. N., Dhillon, G., & Caldeira, M. (2016). Value-focused objectives for CRM system adoption. Industrial Management & Data Systems , 116 (3), 526-545.
Pedron, C. D., Picoto, W. N., Colaco, M., & Araújo, C. C. (2018). CRM System: the Role of Dynamic Capabilities in creating Innovation Capability. BBR. Brazilian Business Review , 15 (5), 494-511.
Skoumpopoulou, D., & Franklin, B. (2019). Implementing a Customer Relationship Management (CRM) System. In Advanced Methodologies and Technologies in Digital Marketing and Entrepreneurship (pp. 57-69). IGI Global.
