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The Basics of Customer Relations Management
Every company has cliental so, at a minimum, they should maintain basic information
about their customers such as a name, an address and all past purchases. So basically,
every company has already created a basic CRM database to better understand and serve
their customers.
This paper will first identify the concept of the CRM concept; find comparative advantages
for CRM in-house and outsourcing functions; and will spotlight a company and how they
effectively use CRM techniques to meet operational requirements.
CRM Concept
Whether it sales, customer service or just gathering statistical data; CRM covers all
interactions between a company and its customers. Emerging technology and the ease of
self-service has changed the methods in which companies employ CRM strategies but the
concepts still remains the same; knowing what the customer wants and what their habits
are going to be. "Organizations are therefore looking for ways to personalize online
experiences (a process also referred to as mass customization) through tools such as
help-desk software, e-mail organizers and Web development apps."“ [1]
"CRM helps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers."“ [2]
In-House and Outsourcing CRM - Comparative Advantages
Even though each CRM method (in-house and outsourcing) can function independently
and provide a different management strategy to better understand clientele, they often
share similarities and/or advantages. Table 1 below illustrates the comparative advantages
associated between in-house and outsourced CRM methods.
" Provide better customer service " Improved Responsiveness to gain Loyalty
" Ability to personalize relationships " Cross sell/Up Sell products more effectively
