Академический Документы
Профессиональный Документы
Культура Документы
Nesela Bojadzic
Table of contects
Introduction 3
Purpose statement 4
Developing a Customer Relationship Management Model for Better Health
Service 5
Description of the process 8
Conclusion 19
1. Introduction
Consumer Relationship Management is becoming more and more used by firms and
organizations, so most of the companies nowdays focuses on the implementation of consumer
relationship management with the aim of promotion and competition of their businesses
(Kavosh, 2011).Considering that day-to-day technology is developing and serving in many
jobs CRM packed software has become a main supporter in business activities and many IT
strategies in the modern world (Light, 2003). By definition, Consumer Relationship
Management (CRM) represents technology aimed to manage and maintain all internal and
external relatioships of the company with the main objective of successful building more of
those relationships, fast and easy connecting to the consumers, facilitating activites and
procesess as well as earning higher profit (Sales force, 2017). Furthermore, important role of
the CRM is generating comparative advantage by being better in communication, delivering,
and improving relationships with existing consumers, and in that way attract the new ones
(Hunt, n.d.)
Since more and more firms understand how relationship with their costumer is important,
combining CRM with the enterprise resource planning becomes a critical topic. Even if many
studies have shown advantages of using those two systems individually, they are still limits in
communication among those two IT resources to reach its full potential and value (Ruivo,
2014). Consumer relationship management is considered one of the most significant parts in
about 60% of the business projects in the whole world due to grand progress in the technology
which allows smoothier and better organized flow of information. One of the evidence how
CRM is important is the recent study entitled - Best Practices of Sales Administration made
by De Paul University. The study shows how 50% of the firms with the sales exceed one
million dollars practiced crm, and more than a half companies indorse that their crm programs
supported relationship with consumers to the great extent. By all means, it is predicted how
CRM systems would be successfully implemented and performed in the future at the higher
level under the one condition - it has to be simple for usage and carrying out (IJBSS, 2013).
2. Purpose statement
In addition to explaining what CRM really is and why it is important, the purpose of this
paper is not just to present a broader image of the CRM and its implementations but to
explain it through its application, process, importance, activities as well as some of its
software solutions. In addition to the introduction and the definition of CRM, a model for
better health service model is discussed in the paper through 8 steps, then the process is
explained in more detail in Figures 1.3. The third section disserted is the importance of CRM
in business and after that a diagram of activities and a variety of 3 different software solutions
is explained. The main sources are: journals, scientific papers, e-books, case studies, and
reports.
Nesela – Introduction, Model for Better Health Service, description of the process, diagram of
CRM activites, and CRM software solutions
Abdullah -
Since the health is the topic which is always important, and people have need and desire to
obtain more information about their health conditions examination of consumer relationship
management will be described through example of health service using so called soft system
dynamics methodology (SSDM). It is a combination of soft (Soft System Methodology, SSM)
and system dynamics which focuses on evaluation, and development of eight steps intended
to introduce implementation of CRM in health care industry. Even if the CRM is commonly
used by most successful companies, it is still rarely implemented by hospitals, and in the
about 70% of the cases operations has failed. The reason behind failure lies in the poor
management, lack of communication and appropriate implementations (Lung Lyu, 2012)
Stage 1 – health check service
In this stage, the need for creating costumized options occurs in order to facilitate access to
the consumers and exchange of information as well as reduce costs for hospital itself. Firstly,
due to better organization, health check is divided into pre-process, and daily health check
with the difference in which package consumer will choose. So the process is simple. Patient
needs to type personal date such as name, surname, and unique code, access the program with
that code, choose the section (abdomenal, cardiology..) and see information he/she needs
(Lung Lyu, 2012).
Stage 2 – structured health check process
If costumers do not dispose with enough information about equipment and machinery that
could lead to the time spent in explaining the process by doctors and costumer unpleasantness.
So there is need for making more accessible adjustments. Since the costumers are most
worried about process of health check they need to be created to decrease waiting time of both
costumers, and pysicians, and nurses, well integrated information about old, and new
equipments, hospitals environment, and similar information that will contribute to building
trust between doctors and patients (Lung Lyu, 2012)
Stage 3 – health screening service factors – In the third stage, 5 factors will be clarified
(CATWOE) in the case of health examination which are used in crm projects.
Table 1.1 – definitions of CATWOE, and their purpose in health care (Lung Lyu, 2012)
Figure 1.1 - Dynamic simulation model of the case high-end health examination service
(Lung Lyu, 2012)
Stage 5 - establishing implementation program
In this step, relationships with costumers are highlighted in the case of health checkup. The
goal is to set, and later improve programs for enhancing and maintaining those relatioship as
well as fulfilling their expectations (Lung Lyu, 2012)
All decisions made concerning activities which involves individuals or groups of costumers
with whome firm is willing to collaborate is called formation process. To complete this
process successfully, company needs to have an ability to recognize and discern costumers
individually. Three areas are covered in this process, and those are; explain the objective or
purpose of activating CRM; choosing suitable partners or parties for existing programs;
developing activity chemes or programs. The general purpose of CRM is advancment of
marketing productivity as well as enhancement of all involved parties where they all have
some benefit. Marketing productivity is increased by being efficient, and effective. Efficiency
is achieved as their operational goals are achieved as well, and some of them are; inventory
management, streamlining order processing, decreasing distribution costs etc while
effectivness is achieved by choosing costumers, satisfying their needs by building healthy
loyal relationship with them or developing new products. Setting the objectives, and
understaning the purpose companies are able to recognize suitable partners matching with
them in expectance, and ability to participate in mutual tasks. Also, it facilitate assessment of
CRM performance. After perfomance is done, objectives such as operational, organizational,
strategic, marketning or financial are compared with results (Parvatiyar, 2001).
Parties and partners
Another important decision company need to make is choosing suitable parties or parnters to
collaborate with. In the first phase, companies have to determine what type of costumers are
their target or which groups are important for them. Afterwards, once company becomes
experienced, and rehearsed, additional programs or costumers can be included as the part of
firm's activities. How company will choose their partners differs from firm to firm which
means that not all company has same criteria, habits, requirements or regulation policies
(Parvatiyar, 2001)
Strategies and programs
According to the literature it can be observed that there are several CRM program types, and
in general they are ranked in three categories: continuity, one-to-one marketing, and
programs of partnership. Based on what they mean to costumers, distributors or b2b
costumers they can occur in different forms. In order to create relationship in which everyone
has benefit marketers explore new and innovative ideas in differents forms and
combinations.However, the pillar of CRM is understanding how to select its costumers. It is
also of great significance to make differentiate among programs, and costumers with the aim
of matching desired revenue with service offers which in the essence need to result in being
better than competitors (Parvatiyar, 2001).
CRM is the most powerful approach in reaching, mantaining, and building healthy
relationship with costumers, and if it is well organized it is not difficult for companies to
recognize what costumers need. Some of the commonly used tools which have proved useful
in the most of organizations are: Sugar, Buzzstream, Salesforce, BatchBook etc.In crm
system, various aspects are taken into account when groupation of costumers is made and
those are: pyhisical location or what business they do. Except maintaing existing relationship,
CRM plays important role in attracting the new ones. After recognizing costumers companies
infrom them about CRM system entitled ‘Business Oportunity’ whereupon sales sector
observe and decide are they gold target. All of mentioned above can be smoothly and
correctly done when CRM is well integrated. The most powerful feature of CRM is cost-
efficiency which means less need for manual work, papirology which results in less
personnel to operate with, and less of resources. Great advantage is not expensive technology
needed in comparison with traditional ones as well as accesibility and centralization of data in
the system. The main goal is actually constumer satisfaction which later leads to increase in
companies profit. Satisfied costumers are always loyal which reduces risks of loosing them. In
a nuteshell, installing crm system helps in facing challenges and definitely leads to
improvement in all business fields (Tessier, 2018).
From the figure illustrated above no._ activities of CRM process will be explained. The model
begins with costumer strategy development in which potential market is recognized.
Profitability is used to divide constumers into segments by different company's strategies.
After that, there is turn on setting objectives such as: loyalty, satisfaction, value of costumers
and their achievment. The third step is measure how company is ready to handle all of the
mentioned above by focusing on costumers instead of products, management, data, and
technology. The step after, as illustrated, is alignment where company uses its change
managements by adding what is still necessary or remove unnecessary. This step can vary
from details about costumers to the change in the fundamental process or organization's
culture. Once changes are made, execution of CRM programs starts with the point on carrying
strategies for each of costumers segments. At the end, company has to effectively measure its
developed program using specific metrics criteria. As it can be seen measurement is intented
for attatainment of costumers goals, how costumer strategy contributed, improvement of data
capacity, and finally measurement of potental for programs in the future. Simply, this diagram
represents what actually CRM requires in order to reach its goals. Eventual proposal for this
model could be including of costumer- oriented culture, as the additionnal requirement which
would, as the literature suggest, purify importance of crm characteristics, and rise awareness
of its usage. Collection, and interpretation of feedback in another suggestion which could be
helpful in the future. Good feedback can recognizes potentially needed changes in some of
steps in the future. Basically, understanding crm leads to greater success related to CRM
programs for every company (Rababah, Mohd, Ibrahim, 2011).
CRM should be ensure simple-to-use forms, and capability even by firms with most complex
processes of sales (NextCorp, 2006). The stronger the relationship, the simplier it is to operate
business as well as earn revenue. Therefore technology is unquenchable factor in
improvement of CRM in business procesess. Generally, CRM solutions can be divided into
following four broader categories: outsourced solutions, off-the-shelf solutions, custom
software and managed solutions (ACCLR, 2009)
- Outsorced solutions -
Web basis as the CRM solution for the business can be provided through application service.
This method of implementation is appropriate in the case firm needs a quick soluton. Also,
this approach is useful when the company is not skilled from the start of the business as well
as when the focus of the company is on the online trade (ACCLR, 2009).
Some of the software firms bid CRM applications which becomes integrated with already
available packages. Smaller businesess consider cut-down software versions more acceptable
for their companies. The benefit of this solution is cheapness because of funding components
that are standard. The drawback is - possible compensation of functionallity of price and
convenience because software may not always does what is imagined. The major point is
- Costum software-
This solutions is considered high-quality software due to integration with existing one by
professional consultants and engineers. On the other hand, explicit and implicit costs can be
high so it is crucial for company to determine, and specify excatly what is needed. This is for
sure most expensive solutions in which software design quotes will dictate the price (ACCLR,
2009).
- Managed solutions-
In between the costum, and first mentioned, outsourced solution is managed solution.
package. Definitely, it can be effective but also may requires compromise in functionallity
(ACCLR, 2009).
CRM software is designed to provide a system that businesses use to manage how they
interact with their current client base and potential clients. Software products such as CRM
software have unique advantages which is the fact that they are digital, CRM developers can
sell their products digitally online, which means they don’t encounter distribution cost, or per-
unit production costs. According to (simplilearn.com) the market for CRM can be classified
into two categories, first is the big five well established market leaders, and the second
category is a huge number of smaller specific products. In 2015 the top 5 CRM vendors
controlled approximately 45% of the market and has been increasing over the years.
(gartner.com) says that at the end of 2017 global customer relationship management software
added up to $39.5 billion overtaking database management systems (DBMSs) revenue, which
added up to $36.8 billion in 2017, making CRM the biggest software market in the world.
The biggest players in the market who account to almost half of the market have been
increasing their overall share each year. In 2015 the five market leaders were Saleforce with a
total market share of 19.7% which is the most dominant player in the market, next in line is
SAP with 10.2% market share, and followed by Oracle (7.8%), Microsoft (4.3%), and Adobe
(%3.6).
(simplilearn.com)
1. Salesforce: salesforce provides a huge package that includes many applications for
provides updates with new features on a regular basis, their system is cloud-based, and
they provide the most user-friendly interface. Other advantages are their excellent
support and developer ecosystem, and their advanced sales and marketing strategies.
2. SAP Digital for Customer Engagement: SAP offers a CRM that is considered
enterprise level for a small business price point. Major features of SAP’s CRM
is that they provide lead, contact, and opportunity management and powerful
collaboration potential. The software is designed for small businesses but can
3. Oracle Sales Cloud: Oracle Cloud CRM includes standard CRM capabilities such as
digital tracking, lead scoring, fostering campaigns and sales ready lead distribution. It
offers a powerful business intelligence (BI) solution with easy reporting and data
storage and OLAP (online analytical processing). Either cloud - based single / multi-
several installation options, such as cloud, local or a combination of both. A plus for
existing Microsoft office users is the ability to integrate the software with Office 365
for even greater productivity. Its first version was launched in Jan 2003 and has been
developing rapidly since day one. Microsoft has launched Dynamics CRM as an XRM
relationship management platform with features such as data - driven marketing, data
newsletters and other content distribution, targeted advertising management, social media
marketing and digital content evaluating and targeting. The Adobe Marketing Cloud is
available as a cloud or on-site platform. The pricing is determined on a case - by - case basis
and the factors in the number of solutions used, user requirements and constant use.
(simplilearn.com)
to successfully deploy and maintain a CRM system there are more things to take into account
besides choosing the right or best software system, a good strategy of implantation is needed.
According to (Tareen, 2018) a company as a whole needs to be ready for their first CRM
system, some of the things you might want to consider are how it affects current resources,
what changes the company will make, what you need to get out of the CRM to improve and
automate your current processes, and what type of system do you need. Whatever choices you
make, the whole company needs to be synchronized as the implementation of a CRM is not
only about dealing with new technology and more about getting used to new and different
First step before implementing is finding out why a CRM system is needed; the firm will have
the highest cost to benefit ratio by discovering which areas of the process you want to
optimize or what issues need to be fixed. The second step is choosing which CRM system
would best fit in your firm, reviewing many vendors and finding a CRM vendor with a
cooperate image that best fit with the buyers cooperate image. Create a formula to evaluate
the benefits system for your company. It is relatively easy to promote intangible benefits such
as increased productivity, but it requires some planning to estimate tangible payoffs, such as a
million dollar increase in revenues. Knowing the benefit calculation of the system is
important because it benchmarks your customer strategy's success and indicates the
importance of the system. Determine the processes of your organization that will implement
the system, plan for future expansion’s, and lastly implement the project from top
Management (CRM) solution is best treated as a six - stage process, from the collection and
processing of information about your customers to the use of this information to improve
identify the behaviour of your customers and categories them. The advantage of
companies with a website and online customer service is that customers can enter and
2. Storing information: The most efficient way to store and manage your customer
that enables you to operate all your systems via the same source, ensuring that
3. Accessing information: all the information which has been collected and stored is
then made available to firms workers in format that is useful to them according to
sales strategies using data mining tools in spreadsheet programs that analyse data to
5. Marketing more effectively: Many companies find that a small percentage of their
customers generate a high profit. Using CRM to better understand the needs, desires
and behavioural patterns of your consumers, you can reward and target your most
valuable customers.
6. Enhancing the costumer experience: Just as a small group of customers is the most
other customers.
These are the most common features for the average company, but some may not be
important to know what your company needs. The following are the typical requirements of
Marketing Automation
CRM and marketing automation go hand in hand, so the majority of CRMs offer automation
marketing modules. Or, if your CRM requirements are more rigorous, there are plenty of
automation marketing platforms that connect seamlessly to the top CRM solutions. Solutions
for customer relationship management enable users to create, deliver and track multi - channel
marketing. They allow easy managing of all appointments with prospects, leaders, colleagues,
vendors and other people. Your integration with marketing automation takes place in your
CRM interface and dashboard with all website and campaign activities. Software’s that should
included
Campaign Design
Customer Targeting
Campaign Delivery
Campaign Analysis
Batch Email Marketing
Lead Generation
Sales Tracking
It is important to know how well your CRM manages opportunities and how marketing and
sales teams are able to work together. Better contact management, quicker proposals and more
can be ensured now by the best systems. Users of CRM systems can manage sales
opportunities from first contact to closure of sales by assigning the most qualified customer
service representative to each lead. CRM solutions offer robust online case management
Opportunity/Contact Management
Business Intelligence
The system provides features of business intelligence (BI) that can accurately monitor and
measure customer service factors. CRM needs to provide insight into customer satisfaction
for better retention of consumers. BI also allows new customer acquisitions to be monitored
Conclusion
CRM is an extremely useful management system that has many applications and provides
companies with vital information about their costumers, how they feel about a product and
provide feedback to marketers and sales. CRM is now considered the largest software
industry in the world, with application for medical patient care to small business
References