The alignment of customer relationship management (CRM) strategies with overall organizational forces and strategies

Berhane Ogbamichael, Hermon (2005-03)

Thesis (MPhil)--Stellenbosch University, 2005.

Thesis

ENGLISH ABSTRACT: Customer Relationship Management (CRM) systems are increasingly becoming strategic business imperatives to organizations. This thesis states that many companies do fail to get the intended returns from CRM infrastructures simply because they see CRM as merely technological solutions to attracting and retaining customers while failing to see it as a business strategy and integrated into the business model or concept. In the first chapter, the review of literature about CRM, the aims, specific objectives, and methodology used to finalize this paper, problems and challenges surrounding CRM systems are discussed. The second chapter consists of the definition of CRM systems from various multi-disciplinary perspectives as taken from different authors. Besides, the nature, potential benefits and costs to both customers and organizations, and the different types of CRM programs are discussed in detail. In chapter three, the need to integrate CRM strategies into organizational corporate strategy and competitive strategies of various functions of an organization are discussed. Besides, the customer segmentation strategies and market segmentation strategies are explained. In chapter four, the relationships between CRM strategies and the various organizational forces such as organizational culture, structure, business processes, and measuring process re-engineering are discussed. In chapter five, the alignment of support technologies with CRM strategies is discussed in detail. The sections in the chapter include the role of ICTs in CRM systems, the use of Customer Knowledge Management (CKM) in CRM strategies, Customer data analysis, the role of data marts in CRM projects, computer system architecture and data storage management, data sources for CRM purposes, the role of database management systems in CRM systems, the role of customer contact points in CRM systems, database structures for CRM infrastructure, and the use of data mining for data analysis and information delivery. In Chapter six, the need to establish value-adding processes and the creation of value in CRM systems to both customers and organizations are mentioned as the main requirements in CRM strategies. Such sub-topics in this chapter include the customer value proposition, determination of acquisition and retention strategies and customer net value, customer service excellence, the relationship between value-adding services and personalized treatment of customers, and loyalty programs. In Chapter seven, the reasons for customer defection and the mechanisms to prevent the defection possibilities are discussed. Then, the thesis is summarized and concluded.

AFRIKAANSE OPSOMMING: Klanteverhoudingsbestuurstelsels - hierna verwys as CRM-stelsels - word toenemend belangrik vir die strategiese besigheidsbelang van organisasies. Hierdie tesis sal poog om te toon dat baie maatskapye CRM bloot as 'n tegnologiese oplossing beskou en derhalwe nie daarin slaag om met hul CRM-infrastruktuur beoogde organisasie doelwitte te behaal nie. CRM word meesal beskou as 'n tegnologiese hulpmiddel om kliente te bekom en te behou, en nie as 'n besigheidstrategie wat in die besigheidsmodel en -konsep geintergreer behoort te word nie. Die eerste hoofstuk, dek 'n literatuur-oorsig oor CRM, stel sekere spesifieke doelwitte met die studie, bespreek die metodologie wat vir die studie hieroor gebruik is en stel die probleme en uitdagings rondom CRM stelselimplementering. Die tweede hoofstuk handel oor die definisies van CRM-stelsels gesien vanuit die perspektiewe van verskillende outeurs. Verder word die aard, potensiele voordele en koste vir beide kliente en organisasies tov die implementering van CRM, asook die verskillende tipes CRM programme wat beskikbaar is, bespreek. In hoofstuk drie, word die belangrikheid om CRM strategiee met die van die organisasie se kooperatiewe en mededingende strategie te intergreer en te belyn, beklemtoon. Verder word verskeie mark-segmentasie strategiee bespreek. In hoofstuk vier gaan die bespreking oor die verband tussen CRM strategiee en die verskillende organisasie faktore soos organisasiekultuur, organisasiestruktuur, besigheidsprosesse. Die meting en beheer van die interverwantskappe van hierdie faktore word op grond van besigheidsprosesheringeneurings- (BPR) beginsels bespreek. In hoofstuk vyf word die inlynstelling/belyning van ondersteuningstegnologiee met CRM strategiee deeglik bespreek. Die afdelings van hierdie hoofstuk behels die bespreking van die rol van Inligtings Kommunikasie Tegnologie (ICTs) in CRM stelsels, die gebruik van Kliente Kennisbestuur (CKB) in CRM strategiee, klient-data analisering, die rol van data-marts in CRM projekte, rekenaarstelsel argitektuur en databergingsbestuur, data bronne vir CRM doeleindes, die rol van databasisbestuurstelsels (DBMS) in CRM, die rol van klient kontak punte, databasis-strukture vir CRM infrastruktuur, en die gebruik van datadelwings- (data-mining) tegnieke vir data analisering en inligtingsontdekking. Hoofstuk ses bespreek die behoefte om waardetoevoegende prosesse te implementeer, en om die skepping van waarde uit CRM stelsels vir beide die klient en die organisasie as die vernaamste doelwitvereiste vir 'n CRM stategie te vestig. Verder behels die onderwerpe in hierdie hoofstuk, die klient waarde-aanbod/proposisie, die bepaling van klientwerwing en -behoud strategiee, die bepaling van klient se netto-waarde, die vestiging van 'n klientediens uitnemendheidsprogram, die verband tussen waardetoevoegende dienste, die verpersoonlike hantering van kliente, en laastens die vestiging van lojaliteitsprogramme. In die finale hoofstuk word die redes vir klientedros/defeksie en die meganisme om die moontlikheid daarvan te verhoed bespreek. Daarna volg 'n opsomming en word sekere gevolgtrekkings gemaak.

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