Defining Customer Relationship Management System

2.2.1 Defining Customer Relationship Management

As described in the previous chapter Customer Relationship Management is considered as strategy, process, philosophy or system. It is an integrated approach of people, process and technology that seeks to understand a company’s customer. It is a comprehensive approach to managing relationship by focusing on customer retention and relationship management .Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth.

In today’s

High-quality meals prepared by talented chefs are delivered directly to customer’s home, office, or any other location. By delivering delicious ready to eat food at the door step of a customer helped them to increase their business. As their customer base grew, catering to existing as well as new customers proved to be a challenge. A CRM solution that involved an integrated proprietary app used by their drivers made it possible for last minute order changes to be implemented at a moment’s notice, resulting in happier customers and better returns. As CTO and Co¬founder of Munchery, Conrad Chu, explains, “Our goal is to go above and beyond, so that ultimately we can turn someone from a frustrated customer into an evangelist.” Additionally, Munchery uses CRM to monitor performance, measure customer satisfaction, track the ordering process, and share feedback with their

The Strategy Development process

It is concerned with the integration of the business and customer strategy designed by the organization to select their customers. The Value Creation process helps to analyze the value the customer adds to a business and also vice-versa. The Multichannel integration consists of all the virtual and physical channels with which the firm plans to interact with. The primary objective in this process is to create an experience that is uniform and also common irrespective of the channel cost..

The Information Management process

In this process data from different repository IT systems, such as back and front office applications and analytical tools are monitored to determine customer satisfaction and standards.

According to Buttle (2001) a CRM value chain is a system that identifies a series of ‘primary stages’ as mentioned above. These are helpful as it considers implementation issues. Therefore both Buttle and Payne identify five CRM processes including: strategic development; value creation; multi-channel integration; information management; and performance