School of Business
Master of Business Administration
BRMM575 – Business Research Methods
Fall 2018 – 2019
Impact of CRM on Organizational Profit
Instructor: Chukri AkhrasCampus: Beirut
Course Section: D
Date of submission: 09-11-2018
By endorsing my signature, I hereby certify that the outcome of this research proposal is purely and entirely my own work.
Student Name Student ID Signature
Wael El Hajj 11230708
Table of Contents
TOC o “1-3” h z u I.Introduction PAGEREF _Toc526697565 h 3II.Research Question PAGEREF _Toc526697566 h 4Overview PAGEREF _Toc526697567 h 4Problem Statement PAGEREF _Toc526697568 h 4Hypothesis PAGEREF _Toc526697569 h 4III.Objectives and Outcomes PAGEREF _Toc526697570 h 5Research Objectives PAGEREF _Toc526697571 h 5Expected Outcomes PAGEREF _Toc526697572 h 5IV.Preliminary Literature Review PAGEREF _Toc526697573 h 6V.Research Methodology and Approaches PAGEREF _Toc526697574 h 7Overview PAGEREF _Toc526697575 h 7Research Methodology PAGEREF _Toc526697576 h 7Research Approaches PAGEREF _Toc526697577 h 7VI.References PAGEREF _Toc526697578 h 8VII.Appendices PAGEREF _Toc526697579 h 9
IntroductionThe Management Information System describes a relevant concept with a man, devise and purchasing methods for gathering data from both domestic further extrinsic sources and treating this information to facilitate judgment making.
A Management Information System is a complete set of elements or objects that communicate to perform a particular function, goal or purpose. Therefore, it is a software-based system that grants data for decision-making on the planning, organization, and monitoring of the performance of the company’s subsystem and the provision of a synergistic organization in the process.
increase the practice of analyzing profit limits for the organization and to achieve its potential goals like its effect on employees and customers while listing the search for the future.
Successful implementation and control of the CRM project depend on effectively identifying and addressing constraints through master planning.
CRM looks at the whole process of what an organization is involved in, whether it is a product or a service-driven the organization and it must involve every aspect of what they do – from suppliers through to the end application, from their internal staff through to their customer’s customer Kim Jenner, (2008).
Customer satisfaction is a vital CRM variable that must not evade our empirical scrutiny. Indeed, customer satisfaction is central to the successful application of the marketing concept. Many company mission statements and marketing plans are designed around the goal of increasing customer satisfaction. (Claudia et al. 2001)
Research QuestionOverviewHow does excellent customer service effect organization productivity?
What strategies should organizations take in pursuing a successful and effective customer relationship?
Should CRM be included in the organization’s strategies?
Problem StatesmentAs the primary objective of the organization is to meet the needs of customers leading to increase its profits. This shows that without the presence of business activities for customers will be useless.
Business owners often focus on improving their products, and this is one of the essential features of the production concept. They often ignore customer care and their relationship; as a result, many of their clients transfer their purchasing interests to organizations that can better serve them.
The problem is that managers do not understand that the value of the customer, care and interests is much higher than the quality of the product. Therefore, organizations tend to do their utmost to retain their customers and attract even more of them.
H0: CRM does not affect organizational Profit.
H1: CRM affects organizational Profit.
H0: Good customer relations service does not have a positive impact on organizational Profit.
H1: Good customer relations service have a positive impact on organizational Profit.
Objectives and OutcomesResearch ObjectivesThe intention of this research is to discover and provide a comprehensive review of literature and organization practices if there is any correlation or relationship between CRM and organizational profits and outline The result of the conceptual CRM.
CRM is defined herein as the process of identifying, classifying, modeling and resolving constraints to achieve organizational profit.
To find out what pays interest to customers.
To highlight the distinction between the customer relationship and the organization’s profits.
To show that CRM is an appliance for acquiring high organizational profit.
Expected OutcomesThis research task concentrates on the impact of customer relationship management organizational profit. A good CRM system is very vital and of utmost importance in every business organization, but for this research, the concern of the researcher aims towards the Impact of Customer Relationship Management in the profit sector of the organization.
This study will be useful for consumers, producers, managers, and government. This work is carried out because recent research findings show that customers still complain of ill-treatment by company attendants and those entangled in service deliveries. it means that in some organizations, the customer is not yet the king as the saying goes that “the customer is always the King.” This study intends to show the effect of customer relationship management on organizational profit so the organization aims and objectives can be accomplished with a minimum error.
Preliminary Literature Review4.1 The evolution of Customer Relationship Management
Customer Relationship Management evolved from business processes like relationship marketing (RM) and a great amount of attention given to improving customer retention through the effective management of customer relationships. Winer S. (2001). He gave three developmental stages of customer relationship management, which are:
1980: Database Marketing.
1990: Foundation of Customer Relationship Management
Present: The Future of Customer Relationship Management
1980: Database Marketing
The 1980s saw the emergence of database marketing, which was simply a catchphrase to determine the practice of creating customer service groups to speak individually with all customers of the company. In the case of larger clients, it was a valuable tool for keeping the lines of communication open and tailoring service to customer needs. However, in the case of smaller clients, it was intended to provide survey-like information similar to databases and did not provide such statistics. When companies started tracking database information, they realized that bare bones (what customers want) are all that is required in most cases, and what they buy regularly, what they spend, and what they do. Database marketing promises to speak individually to countless customers. The reality was that it is too costly, too difficult, and doesn’t pay out on the bottom line, except in the case of business-to-business key account marketing. The compromise: a little database marketing goes a long way which is good news for everyone except for technology vendors.
1990: Foundation of Customer Relationship Management
The 1990s saw the introduction of advances in this system. It was during this time that the term of CRM was introduced. Unlike previous CRM Systems, CRM was a dual system, instead of Data collection for their use, they began to return to their customers not only regarding the public Activity and expenditure patterns. CRM is now used as a way to increase sales negatively as well as continuous ongoing improvement of customer service. CRM is the system that is responsible for introducing things such as frequent flyers, gifts, and credit card points. Before CRM evolved, this was rarely done, customers would buy from the company, and little was done to maintain their relationship. Before the introduction of CRM, many companies did not feel the need to cater to their customers. In the minds of executives, they have enormous resources, and they can replace customers whenever it became necessary. While this may have worked before in the 1980s, the application of the information age allowed people to make better decisions about the companies they would buy, and made global competition It is easier for them to switch if they are dissatisfied with the service they received. As of now, Lebanon has up to two telecommunication companies which are facing intense competition. Each one of them is offering almost the same service and charging almost the same rate, and each of them knows that for them to survive, they must collect necessary information from customers as well as giving the customer information back in return too.
PRESENT: The Future of Customer Relationship Management
Today, Customer Relationship Management They are used to achieve the best of both worlds. Companies want to maintain strong relationships with its customers while increasing their profits at the same time. Today CRM systems can be called TRUE CRM systems. They have become the systems originally conceived by the pioneers of this model. Software companies have continued to produce advanced software programs that can be tailored to the needs of companies competing in a variety of industries. Rather than static, the information processed in modern CRM systems is dynamic. This is necessary because we exist in a constantly changing world, and organizations that want to succeed must continuously be ready to adapt to these changes. Real customer relationship management as we see it today began earnestly in the early years of this century. When software companies launched more innovative and customizable solutions in different industries, it became possible to do so use the information dynamically. Instead of feeding the information in a static database, for future reference, CRM has become a way to update understanding of customer’s needs and behavior continuously. Branching of information, sub-folders, and custom-tailored features enabled companies to break down information into smaller subsets so that they could evaluate not only accurate statistics but information on the motivation and reaction of customers. Today, CRM is still being utilized most frequently by companies that rely on two distinct features: customer service or technology. According to Anderson (2000), The three sectors of business that rely most heavily on CRM and use it to great advantage are:
• Financial services sector.
• A variety of high tech corporations
• Marketing industry.
The Marketing industry, in particular, tracks the level of customer satisfaction and what customers are looking for regarding changes and personalized features.
4.2 OVERVIEW OF CUSTOMER RELATIONSHIP MANAGEMENT
CRM is widely described as strategy, processes, practices or methodology. CRM is not just something that is done once for new customers. It is a continuous process. CRM is a major part of modern business management. As pointed out by Claudia et al (2001), “customer relationship management can be seen as the association of business tactics, organization structure, culture, and customer knowledge and technology so that all customer interplays can be conducted to the long-term satisfaction of the customer and the benefit and increase in performance of the organization”. Newell (2000), viewed Customer Relationship Management as one of the newest innovations in customer service today. Customer relationship management helps management and customer service staff to cope with customer concerns and issues. The strategy involves gathering many data about the customer, data obtained are used to help customer service activities by making the information needed to resolve the issue or interest readily available to those dealing with the customers. This will often lead to more customer satisfaction and, a better business operation regarding profit and performance. In essence, Customer Relationship Management systems are of great help to the management in deciding on the future course of the organization. (Gummesson, 2004) An ordinarily cited definition of CRM is that by Anton ides et al. (1999), which goes thus as:
“Customer Relationship Management is the establishment, improvement, preservation, and optimization of long-term mutually valuable relationships between customers and organizations.” Greenberg (2001), noted that Customer Relationship Management (CRM) includes the methodologies, strategies, software, and web-based abilities that help an initiative organize and maintain customer relationships. It is the combination and distribution of all customer data to different areas of the business. Customer Relationship Management (CRM) is a concept to enhance a company’s ability to retain customers and gain strategic advantage over its competitors. It is focused on creating and managing relationships with customers more effectively through detailed and accurate analysis of consumer data using various information technologies, (Gosney G. et al. 2000). Customer relationship management helps to achieve the organizational goal as well as improve the experience that customers get from the organization.
4.3 COMPONENTS OF CRM
The CRM method is a continuum that doesn’t end when a customer is gained. Instead, it should remain throughout the time that the customer will last in the organization. So with this in mind, Barnes (2002), once further gives slight information on what the components of customer relationship management are:
The customer is the only cause of the company’s direct profit and future growth. However, a good customer, who produces more profit with less resource, is always scarce because customers are aware and the competition for them is fierce. Sometimes it is difficult to distinguish who the real customer is because the purchasing decision is frequently a collaborative activity between participants of the decision-making process. (Wyner 1999). Information technologies can accommodate the abilities to distinguish and manage customers, CRM is more of a marketing strategy that is based on customer knowledge.
The relationship between a company and its customers includes a continuous bi-directional.
The relationship can be short-term or long-term, continual or separate, repeated or one-time. The relationship can be in attitudes or behavior. Although customers have a positive attitude towards the company and its products, their buying behavior is highly situational. For example, the buying pattern of airline tickets depends on whether the person buys it for a family vacation or corporate business trip. CRM involves managing relationships that exist among customers and business owners so that it will be profitable and mutually beneficial to both parties. Customer lifetime value (CLV) is a tool for measuring such a relationship.
CRM is not only activity within the marketing department. Instead, it involves a constant change of companies in culture, attitudes, and processes. The customer’s detail that is obtained is being transformed into corporate knowledge that leads to activities that take advantage of the details and market opportunities. CRM requires an inclusive change in the organization and its members. (Ngai, 2005).
4.4 PURPOSES OF CRM
CRM, in its popular sense, it means managing all interactions and business with customers. This includes, but not limited to, improve customer response and service. A reliable CRM model will enhance business to get customers, customer service increases the appreciation of the customer to the organization, retain good customers, and determine which customers can be retained or given a higher level of service. Wyner (1999), explained that a reliable CRM model could improve customer service by simplifying communication in several ways:
Provide information about the product and use the product information and technical assistance on websites that can be accessed at any time.
Identify how each customer determines the quality, after that a service and design strategy created based on these requirements and expectations to be implemented.
Provide a quick mechanism to manage and schedule follow-up sales calls to assess post-purchase cognitive confusion, repurchase prospects, repurchase times, and repurchase indecision.
Provide a technique to track all points of contact between the customer and the company, and to do so in an integrated manner so that all sources and types of communication are included, and inform all users of the system on the same customer’s perspective (reduces confusion).
Helps to detect and solve possible problems quickly, before it exists.
Provide a user-friendly mechanism for enrolling customer complaints (unregistered complaints cannot be resolved by the company, which is an essential source of customer dissatisfaction).
Research Methodology and ApproachesOverviewThis part focus on the analysis of the methods and procedures that would be used in researching the impact of customer relationship management on organizational profit. It also outlined the methods and sequences by which data for this study is collected, and to be analyzed to test the hypothesis for this research work. The collection of data for this research study is done through the use of primary data source. (questionnaire).
Research MethodologyRESEARCH DESIGN
The importance of design in a research study cannot be overemphasized, and this is because it is used to guard against possible chances of failure in a study, this implies that when an inquiry is conducted, it is necessary and important to anticipate each research problem and decide on what to do, the primary research method for this study is literature review. This study will first review various types of constraints in management and their characteristics. And then one can increase the chances of controlling the research procedures.
Research ApproachesIn this sense, research is deductive approach, and correction is made into the conduct of inquiry the relationship between CRM and Organizational profit using statistical analyses (SPSS) after collecting data from the questioners leading to the improvement and perfection of an integral part of the research effort.
ReferencesGummesson E. (2004). Return on Relationships (ROR): The value of relationship marketing and CRM in business- to – business, contexts. Journal of Business. Ind. Marketing, 19(2), pp 136-148.
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