Customer Relationship Management (CRM)   Term Paper ID:39748 Click to get this paper

Essay Subject: This paper examines customer relationship management CRM systems including their operational analytical and collaborative ...... More...

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Paper Abstract: This paper examines customer relationship management (CRM) systems, including their operational, analytical, and collaborative aspects, technology, and how they relate to the hospitality industry and improving customer relations. Paper Introduction: Customer Relationship Management CRM Customer relationship management CRM creates a comprehensive pictureof customer needs expectations and behaviors by analyzing information fromevery customer transaction Customer Management Although CRM canbe leveraged to improve various aspects of ordering and fulfillment Theintent of CRM is to create a dynamic environment of continuously improvingcustomer relationships Beck Summer CRM is in part aninformation-gathering protocol that creates the customer intelligencenecessary to develop customer relationships Customer Management By collecting storing and analyzing customer information companies candevelop and maintain better relationships Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Underestimating"costs, timeframes, and organizational commitment," the stalling ofcustomer information exchange due to "political friction," and a lack ofaccountability are just a few of the reasons for CRM failure (Travers,2 1). Harrah's is looking to"expand and integrate its CRM channels using software from vendors such asTeradata, a division of San Mateo, Calif.-based Siebel Systems Inc., orE.piphany Inc., also in San Mateo" (Songini, 2 1, p. 2 1, 'Hospitality Players Check Out CRM,' Computerworld, June 25, p. Customer Management 2 7, Wikipedia. Virtually anyone given a choice between searchinghelp menus, FAQs pages, and solution databases or talking to a live personwho can provide immediate help would choose the latter. Retrieved May 19, 2 7 from http://www.dmreview.com/article_sub.cfm?articleId=3956Collaborative CRM 2 7. Microsoft's CRM software suite is intended to "providebusinesses with role-based access to analytical capabilities normallyconsidered beyond their sphere of knowledge, using the tools to make thempart of the everyday Dynamics CRM work environment" (Microsoft bringsanalytics to the desktop, 2 7, p. 6). Collaborative CRMhas a side benefit, as well; it helps the company develop a relationshipwith the customer, something that cannot be done when there are no humansinteracting with him. Harrah's plans to install anear-real-time "automated campaign- and contact-management application,"according to its CIO John Boushy, and the system will "electronically tietogether Web and e-mail campaigns, front desk services and even slotmachines" (Songini, 2 1, p. Hilton's project has a $1 million price tag and asix-month completion schedule but will "help users navigate more quicklythrough the tens of thousands of pages of Web content on Hilton's sites"(Songini, 2 1, p. These components put together are a CRMsolution that covers all the bases. 12, p. In a hotel, forexample, some of the most pertinent information that the system mustdisplay prominently is the customer's name and room number, while a toyvendor's CRM system would be more interested in name, address, and purchasehistory. Retrieved May 19, 2 7 from InfoTrac OneFile, Thomson Gale, University of Phoenix http://find.galegroup.com/ips/infomark.do?&contentSet=IAC- Documents&type=retrieve&tabID=T 3&prodId=IPS&docId=A1621 35 1&source=g ale&srcprod=ITOF&userGroupName=uphoenix&version=1. Retrieved May 19, 2 7 from http://en.wikipedia.org/wiki/Customer_relationship_managementCustomer Management 2 7. The hospitality industry, asone that is dedicated to customer support, convenience, and satisfaction,is particularly a propos as a user of CRM technology and software. Customer interactionsfor a toy vendor differ markedly from those for a hotel, and the softwaremust be developed with these distinctions in mind. 6). The biggest vendor, however, is SAP, which "still brings home moredollars from its CRM software business than anyone else" (Duvall, 2 6).SAP was "the top vendor by revenue in the customer relationship managementcategory with about 26 percent of the market, followed by Siebel with 17percent and Oracle with 6.5 percent," but since Oracle bought SiebelSystems in January 2 6, it "now controls 23 percent of the market"(Duvall, 2 6). 18). Analytical CRM is simply "the analysis of customer datafor a broad range of purpose" (Customer relationship management, 2 7). Because it adds the "people" dimension to whatwould otherwise be strictly automated support or people-less self-help,collaborative CRM adds flexibility to customer assistance in terms oftaking orders and finding solutions for customer problems (CollaborativeCRM, 2 7). Having recently decided touse software that "analyzes a customer's purchase while it is being rungup," making its recommendations "based on the type of goods that arechosen" and suggesting one or two additional products prior to the end ofthe sale," Aguilera relates that: a Skymall representative was on the phone with a customer who was purchasing six items, the company's system suggested that he might be interested in a lithograph of a golfer--even though none of his purchases had anything to do with golf. Once analytical CRM has enabled thecompany to determine what makes its customers happy, it can then "enhanceor change [its] service delivery model accordingly," as well as influencing"product development, pricing, agent support, and even such things asgeographical presence" (Travers, 2 1). Analytical CRM is "the use of customer data for analysis, modeling andevaluation to create a mutually beneficial relationship between the companyand the customer" (Beck & Summer, 2 1). 49. It fosters a much more responsive relationship with thecustomer and makes the customer's experience with a company moreconvenient. Technology considerations are paramount with CRM, because the softwareprograms that "perform the magic," such as Christine Aguilera's software atSkymall, cannot be duplicated outside of the technology. ReferencesBeck, B; J. 49). Interactive chat software for providing live help and support to web site visitors (Customer Relationship Management, 2 7). In addition, software to accomplish data mining and personalizationenhances the benefits of the other components by targeting each customerpersonally and providing the types of merchandise he or she is most likelyto be interested in purchasing. Analytical CRM includes the use of automated data mining techniquesthat track customer browsing and buying habits to predict what types ofproducts customers may be interested in buying. 6). 6). "To our shock, the man said that he had thought about buying it while he was shopping," said Aguilera, Skymall's vice president of business development (Sandoval, 1999). The way the information is laid out on the screen should beintuitive, also. Retrieved May 19, 2 7 from: http://news.com.com/21 -1 4 -232512.htmlSongini, M.L. CRM has three aspects(operational, collaborative, and analytical CRM(thatcan be implemented alone or in combination with one another (Customerrelationship management, 2 7). The company can then offerproducts of interest to phone buyers by suggesting them, or over theInternet by displaying them for the customer's review. CRM is a portable technologythat can be used in a variety of industries. Grouping all of the customer's personal data in one areaand all of the purchase history in another makes it easier to find theneeded information, although the customer's name should be on every screenof the system while the customer is being helped. 6). Retrieved May 19, 2 7 from http://www.crm2day.com/library/EpFkZllEukyaVsPcfF.php Sandoval, G 1999, 'Letting technology do the shopping,' CNETNews.com. Retrieved May 19, 2 7 from InfoTrac OneFile, Thomson Gale, University of Phoenix http://find.galegroup.com/ips/infomark.do?&contentSet=IAC- Documents&type=retrieve&tabID=T 3&prodId=IPS&docId=A714 4232&source=ga le&srcprod=ITOF&userGroupName=uphoenix&version=1. Inaddition, it boosts customer satisfaction, because it saves the customertime and aggravation. Retrieved May 19, 2 7 from http://www.bettermanagement.com/topic/default.aspx?f=488Duvall, M. Vendors included under the TMCSeal of Approval 2 7 Recommended Vendor List are, among many others,Amcat, CosmoCom, Co-Nexus, Inc., etalk, Symon, Stratasoft, Teleformix, andVerint Systems (The TMC Seal of Approval (2 7 Recommended Vendor List),2 7). Collaborative, or self-service CRM "covers the direct interaction withcustomers," including interaction through the Internet by web site, e-mail,or automated phone systems (Customer relationship management, 2 7).Operational CRM's goal should be to "integrate people, processes andtechnology using the customer's perspective and expectations as the keydriver" to "deliver customer-centric business processes and operations"(Travers, 2 1). The three components of CRM "feed each other in a continuous cycle"(Beck & Summer, 2 1). The customerservice department can use the information to provide assistance to thecustomer, as when a customer would like to know what accessories wouldmatch a handbag that was already purchased. Statistical analysis software to support analytical CRM . 49). The partnership "will allow hotels, resortsand hospitality corporations to outsource their data management,warehousing and CRM application development efforts" (Companies Partner forHospitality CRM Offering, 2 , p. A database for storing customer information . Collaborative CRM refers to"direct communication with customers not involving sales or servicerepresentatives," otherwise known as "self service" (Customer relationshipmanagement, 2 7). From this standpoint, collaborative CRM is anoptimal solution for the Internet customer. While collaborative CRM enables customers to makecontact with the company, operational CRM "handles the customer contact andprocessing, and analytical CRM enables the contact to be highlypersonalized through the company's knowledge of the user" (Beck & Summer,2 1). Boushy expects the system to anticipatecustomers' needs, as for example, "if a customer played a slot machine forfour hours in the afternoon, the system could advertise a lunch special onthe machine's screen" (Songini, 2 1, p. For Hilton, the next step is a "reservation and information-accesssystem based on OpenGrid software, plus Broad Daylight software that will"speed up and enhance its Web site for answering customer questions"(Songini, 2 1, p. 6). At a minimum, abasic CRM strategy needs to include: . Summer 2 1, 'Data Warehousing Horizons: CRM: Not Just Operational and Collaborative,' DM Review Magazine, September 2 1. Collaborative CRM is "people-based customer support," including "allthe interactive options for serving customers, including regular phonesupport, Web-based text chat and voice chat, application sharing, desktopsharing (remote control), file transfer and collaborative browsing"(Collaborative CRM, 2 7). 11, no. Retrieved on May 19, 2 7 from: http://www.eweek.com/article2/ ,1895,1976286, .aspMicrosoft brings analytics to the desktop 2 7, CRM Magazine, vol. Furthermore, it is expected to pay for itselfwithin a year by "weaning customers off the phone and getting them to usethe lest costly Web site" (Songini, 2 1, p. One of the hospitality companies already expanding its CRM systemsis the Las Vegas-based gaming and hotel giant Harrah's Entertainment, Inc.,"which already has $75 million worth of Web, direct mail, telephone andcustomer-analysis systems" (Songini, 2 1, p. Retrieved May 19, 2 7 from InfoTrac OneFile, Thomson Gale, University of Phoenix http://find.galegroup.com/ips/infomark.do?&contentSet=IAC- Documents&type=retrieve&tabID=T 3&prodId=IPS&docId=A1621 4188&source=g ale&srcprod=ITOF&userGroupName=uphoenix&version=1. It also costs more than computer-generated helpbut is far more responsive in assisting a customer with a particularproblem, especially if it is unusual (Collaborative CRM, 2 7). in Beverly Hills, California began investing in CRMsystems (2 1, p. Among the many vendors who offer CRM-related software is Microsoft,with its Dynamics CRM software and its free add-on, Dynamics CRM AnalyticsFoundation (Microsoft brings analytics to the desktop, 2 7, p. As Travers points out, "Soon'cross selling' becomes 'cross buying' and in the end both parties benefitfrom a long-term relationship" (2 1). Retrieved May 19, 2 7 from InfoTrac OneFile, Thomson Gale, University of Phoenix http://find.galegroup.com/ips/infomark.do?&contentSet=IAC- Documents&type=retrieve&tabID=T 3&prodId=IPS&docId=A76398429&source=ga le&srcprod=ITOF&userGroupName=uphoenix&version=1. Although CRM canbe leveraged to improve various aspects of ordering and fulfillment, "Theintent of CRM is to create a dynamic environment of continuously improvingcustomer relationships" (Beck & Summer, 2 1). This aspect of CRM allows acompany to gain insight into its customers' needs and wants to enable it tokeep them satisfied (Travers, 2 1). This aspect of CRM is critical; it is "typically highprofile because it cuts across so many organizational boundaries," so it isalso "where most CRM initiatives fail" (Travers, 2 1). 25, no. 4, p. This scenario shows each of these components as being of equalvalue and as depending on the others, but companies are coming to see thatanalytical CRM should really "drive strategic and tactical customeracquisition, retention and optimization decisions," because "without thecapability to analyze customer data, a company cannot effectively listen toits customers (Beck & Summer, 2 1). 13, no. The down side, though, is that since there are peopleinvolved, collaborative CRM requires more people and more time to implement(Collaborative CRM, 2 7). Each of these types of CRM interacts differently with the customer andprovides a different form of customer support. TheAnalytics Foundation allows customers and partners to "use the tools out ofthe box or create customized BI applications, including dashboards, to runon top of Dynamics CRM 3. " (Microsoft brings analytics to the desktop,2 7, p. Every time an interaction takes place with a customer, theinformation related to that interaction is appended to the customer'shistory, giving the staff a useful reference for ongoing customer support(Customer relationship management, 2 7). From anticipating customer needs to ensuring customer satisfactionto demonstrating to the customers that your company is the go-to place forgetting what they want, CRM is mutually beneficial for both customers andcompanies. Retrieved May 19, 2 7 from: http://www.answers.com/topic/collaborative-crmCompanies Partner for Hospitality CRM Offering 2 , Customer Interface, vol. Christine Aguilera,the owner of the online merchant Skymall, discovered that analytical CRMcan be highly useful in customer interactions. Travers, R 2 1, 'Why Is CRM So Difficult,' CRM Today. 6). Customer Relationship Management (CRM) Customer relationship management(CRM("creates a comprehensive pictureof customer needs, expectations and behaviors by analyzing information fromevery customer transaction" (Customer Management, 2 7). The TMC Seal of Approval.(2 7 Recommended Vendor List) 2 7, Customer Interaction Solutions, vol. Operational CRM, forexample, "provides support to 'front office' business processes/teams,including sales, marketing, and service" (Customer relationship management,2 7). The layout for CRM software screens needs to be specific to theindustry and application for which it will be used. Hospitality CRM is the specific application of CRM software andtechnology to the hospitality industry. Hilton uses CRM systems "to help them consolidatecustomer information so it can be used to develop expanded serviceofferings and mined for target-marketing campaigns" (Songini, 2 1, p. The information recorded in thedatabase can be used by the corporate offices to determine profitabilityand the demographics of its customers, while the marketing arm can use itto figure out how and what to market to particular customers. The salesdepartment can use the customer's purchase history to predict what productsthe customer might be interested in purchasing in the future. 6). Even though customers may realize that the company is usingsoftware to keep track of their preferences and purchases, it is still acomforting feeling to know that the company "understands" their needs andconcerns and cares about their convenience. One such vendor is Opal Sky, adata mining and CRM consultant firm that also markets software, has teamedwith IDT Hospitality Group to develop "what may be the first CRM systemexclusively for the hospitality sector" (Companies Partner for HospitalityCRM Offering, 2 , p. 6). Operational CRM is "the automation orsupport of customer processes involving sales or service representatives"(Customer relationship management, 2 7). 6. 18). A CRM system for helping an Internet customer with a purchaseshould include e-mail address and telephone number as well as purchasehistory, in case the session becomes interrupted by technical problems;this allows the agent to call or e-mail the customer back after the problemis resolved. There are many CRM vendors, but fewer vendors that offer softwarespecifically for the hospitality industry. As Songini points out, "For anindustry that's so dependent on delivering good customer service, it'sironic that the hospitality sector has been so slow to adopt customerrelationship management (CRM) tools," but in 2 1 the hospitality giantHilton Hotels Corp. Right there, the shopper plunked down $2 for it. Customer interaction systems to support collaborative CRM . 18). 1 , p. 18. Everycustomer wants an easy buying experience, and every company wants happycustomers; CRM can help ensure both. 2 6, 'SAP Fights Off Oracle in CRM Market,' e-week.com, June 13. 19. CRM is in part aninformation-gathering protocol that "creates the customer intelligencenecessary to develop customer relationships" (Customer Management, 2 7).By "collecting, storing and analyzing customer information," companies candevelop and maintain better relationships with their customers and do abetter job of meeting their needs (Customer relationship management, 2 7). Answers.com. Customer agent support software for operational CRM . 6). CRM in all of its forms from operational to analytical is becomingincreasingly important in the customer relationship dynamics of today'smarket. Operational CRM is not a plug-and-play solution; it must beintegrated into the organization with support from every department and afocus on customer satisfaction. Hilton Hotelsuses E.piphany as well (Songini, 2 1, p. 6).CRM has offered substantial advantages to hotels and hospitality companiesas the industry has taken a downturn due to a slow economy (Songini, 2 1,p. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.