Managing Relationships through Information System(CRM)(wy15)

Abstract

Customer relationship management (CRM) is “a combination of people, processes and technology that seeks to understand a company’s customers”(Injazz and Karen, 2003). CRM is “an organizational strategy not a solution. Some of the factors behind this renewed interest in customer relationships include advances in information technology and data warehouses, the increasing c, a high level of market dynamism, intense competition, and disintermediation”(Lawrence, 2002). Furthermore, according to the ‘4:1’ theory (i.e.80% of a company’s profits comes from 20% of its customers), companies must focus on managing customer relationships in order to increase the retention of customers. The successful implementation of CRM strategy leads to efficient revenues maximization, customer satisfaction which is the most important way to gain customer loyalty and organizational competitive advantages. The implementation of CRM will change the business relationships, and at the same time, only if people in the organizations can understand IS roles and contribution, facilitating and managing business process is redesigned accurately, and data resource is used effectively, the implementation of CRM will be successful.

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