After 1990, the business world began to change, the emergence of the Internet, e-commerce and Web technology led companies to rethink their strategic approach (hitherto product-oriented), for a customer-oriented approach, which Look for a long-term relationship with this one, to guarantee, at the same time, your loyalty.
Summary
Customers, for their part, become more demanding and the marketing process consequently changes, now the customer's need must first be discovered, before generating the product or service that satisfies him, and then this product must be sold. In order to achieve these changes, technological tools are needed, which handle enormous volumes of information and provide very high-quality services. As a result, CRM (known by its acronym in English as “Customer Relationship Management”) emerges as a response.
Methodology
To carry out this article, sources from the Tecnológico de Monterrey digital library were consulted in the Emerald and ProQuest databases, some “journals” obtained from Blackwell Synergy and some electronic magazines.
Introduction
This article outlines the changes that have taken place in recent years, in the focus of business, from being to products or transactions, now looking for a relationship with the customer. The importance demanded by the client, how it is necessary to know their needs and satisfy their high service requirements are displayed. This marks a drastic change in Marketing, from being mass-oriented, you must now shift your focus to more personalized marketing.
However, to achieve this, personalize marketing and build close relationships with customers, it is necessary to rely on information technologies, systems that are designed to handle large volumes of data and manage information throughout the business process. One of the technologies that satisfies this need is CRM, a software that provides applications that integrate marketing, sales, e-commerce and customer support services for the company. CRM is itself a business strategy that is fully customer oriented.
New tendencies
Anh et al. (2003) cites Wayland and Cole (1997) expresses that before 1990, the main interest of companies focused on the performance of business transactions with customers, however, after 1990, companies began to focus on their interests in aspects of how to have a positive relationship with the customer, how to maintain their loyalty and how to add value.
The emergence of e-commerce changed many aspects of existing businesses and created new companies with innovative business models, with different opportunities and processes. The challenge for existing companies is to rethink their key business relationships - between the organization and its customers (Pan and Lee, 2003).
The environment is increasingly competitive and the differentiation by product is denoted more complicated, so companies must direct their efforts towards differentiation in service (Soluciona, nd); This is stated by Pan and Lee (2003): most companies confront a growing and sophisticated portfolio of clients who demand high levels of service and very short response times through multiple access channels.
CRM
Galbreath and Rogers (1999, p. 162) cited by Law et al. (2003) defines CRM as the set of activities that a business performs to identify, qualify, acquire, develop and retain customer loyalty and its advantages for delivering the requested product or service, to the right person, in an increasing and constant way. through the right channel, in the promised time and at the right price.
According to Deck (2001), CRM is a strategy to learn more about customers' needs and behaviors, and with that information, develop a close relationship with customers, which guarantees business success.
CRM collects a large volume of information about customers, sales, marketing effectiveness, responses, and market trends.
Soluziona (sf) states that the CRM concept proposes to align the organization's resources and make use of all its capacity in each contact with the client, in order to understand, anticipate and respond to the needs of the same, to transform simple transactions in small steps to build a close relationship between the client and the company.
For his part, Law et al, (2003) states that CRM integrates sales, marketing, customer service, company resource planning and some functions of the supply chain throughout the business automation process, with technological solutions. and information resources to maximize each contact with the client. CRM facilitates relationships between the company and its customers, partners, suppliers and employees, but its goal, according to Deck (2001), is to simplify sales and marketing processes.
However, CRM is not a new marketing concept, although it is based on three aspects of its administration (Verhoef and Langerak, 2002): Customer-oriented, relationship marketing and marketing databases.
Figure 1. The essence of CRM. Verhoef and Langerak (2002). Business Strategy Review.
CRM is a management process that seeks to develop and maintain the relationship with clients individually and thus generate value for both the client and the firm, with the use of the client database, with support tools for the decision and interactive communication techniques (Verhoef and Langerak, 2002). However, Sheth and Parvatiyar (1995) cited by Hamind and Kassim (2004) indicate that the objective of relationship marketing is to facilitate and support the customer's consumption and their treatment (use) processes within the relationship.
Ahn (2003) summarizes CRM as a process designed to know the characteristics of clients and apply these characteristics to "Marketing" activities. It differs from the classic "Marketing" in the point in which your marketing has the client in mind. The main reason for the appearance of CRM is the changes in the “marketing” environment and the advances in Web technology.
Marketing
Companies are shifting to customer-oriented strategies, and the marketing media is suddenly changing. Mass marketing from the past is now shifting to one-to-one marketing via “target marketing”, “niche marketing”, “database marketing,” and “Internet marketing” (Anh et al., 2003):
- Mass marketing: It presents promotions for the sale of materials for an unspecified general public and its means of transmission is massive, such as newspapers, magazines, television and radio, where anyone can receive the message. Product oriented. A product for many clients. Target Marketing: Presents marketing strategies for a specific group of clients to solve the problem of mass marketing and increase efficiency. One-to-one marketing. He has an individual relationship with the client and presents marketing strategies. Her style is customer oriented. Many products for a customer.
However, marketing managers who had traditionally been trained to get new customers with established marketing tools, such as price, promotions, and mass warnings; they are now shifting their focus to customer retention and developing a relationship with them. The goal is to maximize the customer's lifetime value by maximizing their benefits from discreet transactions with customers. To achieve this, administrators have turned to CRM. (Verhoef and Langerak, 2002).
However, Internet technology is essential for CRM and from a marketing perspective, the Internet is a tool that can help companies better understand customers, provide personalized service and retain them (Hamind and Kassim, 2004).
Marketing within CRM
The concept of electronic CRM is designed to understand who the customers are and the products they are interested in - then it is possible to provide them with the products and services they want. Equipped with an infrastructure that enables the company to create customer value and automate the "who, what, when, where and how" of sales and marketing (Pan and Lee, 2003).
CRM has to be designed to efficiently support the following factors: data analysis results, campaign management, real-time decision support, integration and data mining (Ahn et al., 2003). Figure 2 shows the process business with the help of CRM and the location of the Marketing stage within the same process.
Figure2. Business process with the help of CRM. Conceptual relationship between the key applications of CRM. Communications of the ACM 2003.
Information integration application consolidates customer data and information from different sources - transaction systems, call centers, Web sites, and ERP systems - into integrated, customer-focused information. This application allows companies to identify and respond in many ways and accurately to their customers wherever customers purchase their products (Pan and Lee, 2003).
Costumer analysis application, predicts and interprets customer preferences, enables companies to understand the effectiveness of e-CRM efforts across both internal and external channels. This is where the Marketing process takes place and the integrated customer information is used to build a campaign strategy for the business and evaluate results. There are generally three broad types of customer analytics applications: online analytical processing, data mining, and statistics (Pan and Lee, 2003). The most important function of customer-oriented marketing is to collect and accumulate information about customers and provide services to them. It is very difficult to obtain information without taking advantage of IT and rapid advances such as databases, data warehousing,and data mining as a central part of the change in marketing paradigms (Ahn et al., 2003). Data analysis / mining. Lee and Siau (2001) noted that success in applying data mining techniques can be a huge buffer for organizations. One purpose of data mining and its analysis in CRM is to extract the information necessary to provide efficient customer service (Cooley et al, 1997). To improve, various techniques are used, which are classified as: pattern discovery techniques, clustering, classification, customer evaluation (RFM, ROI), etc. (Ahn et al., 2003).Lee and Siau (2001) noted that success in applying data mining techniques can be a huge buffer for organizations. One purpose of data mining and its analysis in CRM is to extract the information necessary to provide efficient customer service (Cooley et al, 1997). To improve, various techniques are used, which are classified as: pattern discovery techniques, clustering, classification, customer evaluation (RFM, ROI), etc. (Ahn et al., 2003).Lee and Siau (2001) noted that success in applying data mining techniques can be a huge buffer for organizations. One purpose of data mining and its analysis in CRM is to extract the information necessary to provide efficient customer service (Cooley et al, 1997). To improve, various techniques are used, which are classified as: pattern discovery techniques, clustering, classification, customer evaluation (RFM, ROI), etc. (Ahn et al., 2003).2003).2003).
Campaing management application: uses the data warehouse to plan and execute multiple campaign objectives over time, using a trigger that responds to scheduled events and customer behavior (Pan and Lee, 2003).
Real time decision application, coordinate and synchronize communication through the different point of contact systems with clients. It contains the business intelligence to determine and communicate the most appropriate message, to offer, and to release channels in real time, and to support a two-way dialogue with the client (Pan and Lee, 2003).
Personalized Messaging Application, distributes text or html pages, scaled to support some volumes, using automated mechanisms to answer questions and manage recipients of Web pages (Pan and Lee, 2003).
conclusion
Effective CRM has become a dominant strategy for companies, companies are moving close to their customers, striving to find new ways to create value for their customers, and transform the relationship with them into a trusted solution (Park and Kim 2003).
The CRM that meet the following characteristics (Soluziona, sf):
They are conceived as a tool that supports the complete cycle: marketing, sales, personalized campaigns, etc.
They support the integrated management of contacts through different channels and facilitate the incorporation of new channels.
They require the establishment of integration mechanisms with Data Warehouse Systems, Data Mining and Marketing Systems, as well as with other corporate transactional systems, facilitating in an integrated way all the information available from the client.
In addition to these characteristics, its main attribute lies in the support it gives to applications for customer analysis and the help it provides to establish a close relationship between the organization and the customer.
Bibliography
Ahn, Jeong Yong, Kim Seok Ki & Han Kyung Soo. (2003). "On the design concepts for CRM system". Industrial Management & Data Systems 103/5.
Deck, S. (2001, May) "What is CRM?"
Hameed, I. "CRM Turnaround - Making it Happen". Internet Technology. Recovered on May 13, 2004 from:
Hamid, NR & Norizan, K. (2004, March). "Internet Technology as a Tool in Customer Relationship Management". Journal of American Academy of Business, Cambridge. Hollywood; Volume 4 (1/2)
Law, M., Lau, T. & Wong, YH (2003) “From customer relationship management to customer-managed relationship: unraveling the paradox with a co-creative perspective”. Marketing Intelligence & Planning; Vol. 21 (1
Pan, Shan L. & Lee, Jae-Nam. (2003, April) "Using e-CRM for a Unified View of the Customer". Communications of the ACM. Vol. 46 (4).
Park, C. & Kim, Y. (2003). "A framework of dynamic CRM: linking marketing with information strategy". Business Process Management Journal; Vol. 9 (5).
Schneider, L. "Why Should I Outsource My Marketing Functions?"
Soluziona (2004, January). "The CRM system in the new company".
Verhoef, Peter C. & Langerak, Fred. (2002) "Eleven misconceptions about customer relationship management". Business Strategy Review Vol. 13 (4) 70-76.
