Customer Resource Management Outline


CustomerResource Management


Abstract 2

Introduction 2

CRM Systems in Customer Contact and Satisfaction 3

  • The use of CRM systems to track the customer’s transaction history such as data and purchasing behaviors

  • The use of CRM as a cost cutting measure besides amplifying performance rate. This implies customer loyalty that leads to profitability

  • CRM systems employed in Business-to-Business (B2B) settings. This is with the aim to restructure and enhance customer management.

Conclusion 6

References 8


Thecurrent paper has focused on how properly implementing and utilizinga customer resource management (CRM) system enables a business to seeimproved quality in customer contacts and satisfaction. CRM systemsare efficient platforms which enable companies to relate to theirclients anytime and anywhere. They generate individualizedassociations which enable companies to understand their customersbetter. It has been evidenced that these systems help in managing andanalyzing customer interactions all through the lifecycle in order toenhance relationships, and in turn improve customer contacts andsatisfaction.


Inthe current time, the concept of customer resource management hasobtained much attention from scholars in the business field. Mostorganizations are increasingly adopting programs, technologies, andstrategies that are customer focused to ensure effectiveness andefficiency (Piskar &amp Faganel, 2009). The demand for integratedand thorough customer knowledge has risen to facilitate closeassociations and cooperation. The development of new technologieshas modified how organizations relate and communicate with theircustomers. It has resulted in a greater degree of incorporation amongdifferent functions including sales, marketing, and customer service.Practitioners believe that CRM systems represent a platform fordeveloping strategies and programs beneficial in encouragingcustomers to improve their relationship with the organization(Davenport, Harris, Kohli, 2001).

CRMis defined as a system that enables organizations to manage theirinteractions and relationships with customers (Davenport, Harris,Kohli, 2001). It entails the employment of strategies, practices, andtechnologies to automate, organize and synchronize customer service,sales and technical support. Managing and analyzing customerinteractions all through the lifecycle in order to enhancerelationships, and in turn improve customer satisfaction andretention. The current paper analyzes the claim that when properlyimplementing and utilizing a customer resource management system, abusiness sees improved quality in customer contacts and satisfaction.

CRMSystems in Customer Contact and Satisfaction

Companiesuse CRM systems to track their customer’s transaction history. Tracking is significant as it helps in growing the client’saccount. They also use these systems to amass customer informationacross diverse channels such as the organization’s website, directmail, telephone, and social media platforms. They also providecomprehensive information regarding customer’s purchase history,personal information, concerns, as well as buying preferences. Somestudies have evidenced that CRM results in enhanced quality incustomer contacts and satisfaction (Nguyen &amp Mutum, 2012). Thesignificance of customer satisfaction in any environment cannot beignored. Happy customers are compared with free advertising as theyact as channels to reach new clients. With the heightened competitionin the present time, companies have adopted strategies whichguarantee customer satisfaction while modifying their staff to bemore service-oriented and customer-centered.

Organizationsuse CRM to analyze customer data and purchasing behaviors. It helpsin distinguishing customers in terms of the value they add to theorganization. It also helps understand the needs of differentcustomers. The information can be used in offering better customerservice thus enhance satisfaction.

Companiesuse CRM systems in different ways including tracking, recording,storing in databases, and determining the information in a mannerthat amplifies customer relations (Nguyen &amp Mutum, 2012). Theyalso codify communication between the company and its customerstherefore enabling sales and profits maximization. This is achievedthrough the employment of analytics which gives organizations moreinformation on how to plan their customer service and marketing.Through this, they optimize revenues and increase productive contactwith their customers (Davenport, Harris, Kohli, 2001). Contactscenters are the operational techniques used by contact channels. Inhere, they assist in directing customers to self-empoweringinformation or appropriate agent. They also classify and recompenseloyal clients after a certain period. This makes sure that customers’needs are met in the best way possible. They also become fulfilledwhile obtaining a higher degree of motivation. Recently, various CRMsystems have been initiated for commercial use. Most of these systemsindividualize associations with clients by offering essentialinformation at each point of interface (Winer, 2001). Methods such asartificial intelligence, joint filtering, relational databases, andrule-based specialist systems have become more and more functional indeveloping business level solutions. They help in managinginformation related to customer relationships.

Accordingto Bhattacharya (2011), effective and efficient management ofcustomer interfaces improves customer contact as well assatisfaction. The author argues that most companies implement CRM tocut costs besides amplifying performance rate. It implies customerloyalty lead to profitability. Certainly, a thriving CRMimplementation entails collecting data both from external andinternal sources including customer service, procurement, sales andmarketing department among others. The importance is that it assistsin acquiring holistic scrutiny of every customer’s need, thusunderstanding them better. When employees are acquainted with suchinformation they make correct and fast decisions while handlingcustomers in diverse areas (Bhattacharya, 2011). The result of thestudy indicated that how an organization treats and perceives everycustomer helps in solving numerous issues related to clients. Theimplication of this is that effective implementation of CRM aids inattaining customer loyalty and satisfaction (Bhattacharya, 2011).Therefore, companies should discover customer needs and requirementsand consequently modify their policies in accordance with such needsto amplify satisfaction.

Asput forth by Wang and Lo (2004), CRM model is founded on twoviewpoints. To begin with, it evaluates factors linked with customerbehavior including customer purchase rate, repurchasing, and upselling (Wang and Lo, 2004). Secondly, it determines relationshipquality encompassing customer loyalty and satisfaction. In order todetermine how the application of CRM systems improves satisfaction, astudy was carried out in two security firms in China. A sample of 400customers who were chosen randomly was utilized (Wang and Lo, 2004).The results indicated that client’s functional and emotionalbehavior has positive effect on satisfaction founded on CRMcomponents.

Customerloyalty is determined by various factors including customer serviceand product quality (Dyché, 2002). Customer service shouldparticularly stand out considering that companies offer differentproduct options which clients can choose from when doing purchase.The car industry for instance is characterized by different dealerswho sell similar cars. The dealers differentiate themselves bytreating and serving their customers in the best way possible. Whatmatters most is how they sell their products. CRM systems enabledealers to differentiate themselves in terms of service offering.They enable them show their commitment to customer service, a movesthat helps in amplifying customer contact and satisfaction. This iswhat guarantees them return customers.

CRMsystems are also employed in Business-to-Business (B2B) settings torestructure and enhance customer management (Nguyen &amp Mutum ,2012). It indicates that CRM is not only meant for customer focusedbusinesses. B2B associations last for a long time meaning that theimplementation of CRM systems should be individualized and deliveredat personal levels (Nguyen &amp Mutum , 2012). Businesses relatewith each other through various platforms including the web. By usingCRM systems, they manage and enhance relationships with customers aswell as business partners.

Ina nutshell, CRM systems leverage different departments in anorganization such as customer service, marketing and sales, and humanresource among others to optimize customer contact and interaction.Customers benefit from these systems as they enable them completetransactions in a customized, convenience and simple manner in spiteof the channel employed. This gives them greater satisfaction as theyfeel that their needs are being met in a superior way. CRM systemsare customer driven or customer centric. When completely andeffectively implemented, they maximize relationships betweenorganizations and their customers. As put forth by Winer (2001), mostcompanies which have implemented CRM systems have evidenced highercustomer satisfaction. This has been evidenced by return of existingclients leading to increased sales and profitability.


CRMsystems are one of the most important aspects that most companies inthe contemporary time are implementing in order to stand out. Thecurrent paper has focused on how properly implementing and utilizinga customer resource management system, a business will see improvedquality in customer contacts and satisfaction. It has been evidencedthat the development of new technologies has modified howorganizations relate and communicate with their customers. CRMsystems help companies to manage their interactions and relationshipswith customers. Organizations employ CRM systems to amass customerinformation across diverse channels such as the organization’swebsite, direct mail, telephone, and social media platforms. Inaddition, they provide ample information concerning customer’spurchase history, personal information, concerns, as well as buyingpreferences. Effective and efficient management of customerinterfaces enhances customer contact as well as satisfaction Itassists in attaining holistic scrutiny of every customer’s need,thus understanding them better. When the staffs are acquainted withsuch information they make correct and fast decisions while handlingcustomers in diverse areas. In short, CRM systems are a key platformthat can aid organizations in knowing and serving their customersbetter. Understanding customers needs and requirement is one way ofmaximizing their satisfaction.


Bhattacharya,A. (2011). Preeminent analysis of customer relationship management(CRM). InternationalJournal of Research in Management &amp Technology,1(1), 45-51.

Davenport,T.H., Harris, J.G. &amp Kohli, A.K. (2001). How do they know theircustomers so well? MITSloan Management Review,42. (2):63-73.

Dyché,j. (2002). TheCRM handbook: A business guide to customer relationship management.Addison-Wesley Professional.

Nguyen,B. &amp Mutum, D. S. (2012). A review of customer relationshipmanagement: successes, advances, pitfalls and futures. BusinessProcess Management Journal,18 (3): 400-419.

PiskarF. &amp Faganel, A. (2009). A successful CRM Implementation Projectin a Service Company: Case Study. Organizacija,42: 199-208.

Wang,Y., &amp Lo, H. P. (2004). An integrated framework for customervalue and customer-relationship management performance: acustomer-based., perspective from China. ManagingService Quality,14(2/3).

Winer,R. S. (2001). A framework for customer relationship management.CaliforniaManagement Review.