Customer Relationship Management Research Assignment - 825 Words

Customer Relationship Management Research Assignment (Essay Sample) Content: Importance of Customer relationship managementStudents NameInstitution Importance of Customer relationship managementOne of the key features of modern society is the increased influence that consumers have over the production and delivery of products and services. Contrary to the traditional concept of business, customers have grown to express interest in the operationalization of company objectives and values. Therefore, it is imperative that organizational management understands the needs, perceptions, and preferences of their customers. The importance of creation and maintaining customer relationships is undeniable. This essay seeks to establish some of the core reasons behind the fundamentalism of customer relationship management in business. First, customer relationship management creates a readily available database of customer information. Thus, companies can track consumer development, as well as gradual and abrupt changes in consumer preference. The data is o f particular importance for strategic planning because managers can assess the past and present data to forecast and anticipate what customers may want. For instance, users in the hospitality sector have emphasized their value for sustainability and green production. Therefore, they are more likely to seek out companies that hold similar values on sustainability. Through a CRM system, managers within the hospitality sector can view customer trends indicating their preference for green companies; thus altering their strategies to support environment sustainability. Secondly, effective CRM systems are directly related to organizational brand dominance. The main purpose of customer relationship management is to evaluate the needs of the consumer, identify where they want to get and provide the required goods or services to get them there. Through CRM, managers can identify some of the main consumer concerns by establishing feedback channels. For instance, major brands such as Nutella a re dominant because the company offers a sense of belonging to its customers. Nutella's establishment of an online brand community provides consumers with a one on one communication set up with the company. Therefore, they get to own the product because they contribute to its continual improvement and strategy development. Consequently, Nutella consumers are increasingly loyal towards the brand. Similarly, managers in the hospitality sector can use customer relationship management to develop communication channels between their companies and the customers. Organizations can acquire much-needed consumer input which not only improves the product but also creates a lasting brand loyalty effect among consumers. Another way to expound on brand loyalty is discussing the relationship between CRM and customer satisfaction. Customer relationship management is a two-way street of communication between users and organizations. Therefore, the existence of feedback channels provides the basis fo r product improvement to meet the needs of the customer. Further, the available data on specific customers is incredibly detailed; so much so that companies can anticipate their needs. Thus, customers' level of satisfaction is elevated; further increasing the chances of brand loyalty development. Thirdly, the creation and maintenance of existing customers directly translate to higher profits. Companies go through an increasingly cumbersome process to acquire new customers. The process includes steps such as market research, new product development; product test runs among other very expensive and time-consuming processes. However, it is easier and less costly for companies to maintain customers whose interests they already know. Therefore, while penetrating new markets is a fundamental concept in business growth and expansion, the maintenance of existing clients is the basis on which growth is founded. Thus, customer relationship management works towards maintaining the old customer s while trying to inspire new ones. Therefore, customer relationship management is a crucial factor of productivity for managers in the hospitality sector. Finally, CRM systems are extremely convenient for organization data processing ventures. Customer relationship management systems hold an enormous amount of information that is segmented ...