Customer relationship management solutions in organisations

Ligthelm, Verina (2002-12)

Thesis (MBA)--Stellenbosch University, 2002.

Thesis

ENGLISH ABSTRACT: "Globally, businesses invested about $8 billion in hardware, software and external services in 1999 to design and implement eCRM solutions. And these investments will grow to over $38 billion by 2003. We also see that it is happening everywhere from New York City to Sydney and Frankfurt to Seoul and Rio de Janeiro." Stanley A. Brown (2000:xiii). The ever-changing global environment brings new challenges and opportunities to the business environment. These rapid changes in the marketplace force companies to reconsider the ways in which they do business. Companies will not be able to avoid macro-environmental scanning and scenario planning. Companies that will survive in this unpredictable arena must develop skills to become faster and more efficient. The most significant changes and challenges will be in new competition faced by companies (for example, from previously unexpected sectors) and in changes in customer demands. Recent rapid technological developments have created new methods of doing business, resulting in new markets and new business practices. The world-wide market place now allows customers to obtain price and quality information readily and reliably - 24 hours a day, 7 days a week. Companies will not be able to gain and retain competitive advantage by developing skills in only one area. 'Customers are increasingly difficult to satisfy and require quality, promptness and realistic prices for products and services. Customers prefer to be treated as individuals with individual needs and requirements, and not as part of the mass-market. Segmentation alone will not assist companles per se - implementation of the segmentation supported by specific business processes and technologies will result in the required shift from a product-orientated approach to a market-orientated approach. A business objective for companies in the New Economy must be to increase customer retention, leveraged by a customer-driven focus. An increase in customer retention will benefit the company - it is more expensive to acquire new customers than retain an existing customer base. This study argues that a customer-driven focus supported by the latest ecommerce processes and technology will assist companies in gaining and retaining a competitive advantage. The study will focus on the successes, and factors contributing to these successes, of Customer Relationship Management (CRM) software implementation. In addition to the above, the study will focus on the reasons why ROl (Return on Investment) on CRM implementation projects is inadequate in many cases. A further objective of this study will be to describe the main reasons why up to 60% of CRM implementations fail at first pass, and examine how to reduce this percentage significantly. The study will finally demonstrate that the critical question for managers is not whether a CRM system is necessary, but which products to implement and which factors to take into account before implementing the project.

AFRIKAANSE OPSOMMING: "Globally, businesses invested about $8 bill/ion in hardware, software and external services in 1999 to design and implement eCRM solutions. And these investments wil/ grow to over $38 billion by 2003. We also see that it is happening everywhere from New York City to Sydney and Frankfurt to Seoul and Rio de Janeiro." Stanley A. Brown (2000:xiii) Die deurlopend veranderende wêreld veroorsaak dat daar gedurig nuwe uitdagings en geleenthede in die besigheidswêreld ontstaan. Hierdie skielike veranderinge dwing besighede om in diepte te kyk na die manier waarop hulle besigheid doen. Dit sal onwys wees vir besighede om makro-ekonomiese vooruitskatting en scenario-beplanning te vermy. Besighede wat in hierdie onvoorspelbare omgewing wil oorleef, sal vaardighede moet ontwikkel om ratser en meer effektief te wees. Die ingrypendste veranderinge en uitdagings sal wees in die vorm van nuwe kompetisie waardeur besighede bedreig sal word - byvoorbeeld uit voorheen onverwagte sektore - asook veranderinge in verbruikersbehoeftes. Snelle tegnologiese ontwikkeling het nuwe besigheidsmetodes tot stand gebring, met gevolglike nuwe markte en nuwe besigheidspraktyke. Die wêreldmark maak dit nou vir verbruikers moontlik om inligting vinnig en betroubaar in die hande te kry - 24 uur per dag, 7 dae per week. Besighede sal nie 'n kompeterende voorsprong kan realiseer deur vaardighede in slegs een area te ontwikkel nie. Verbruikers is toenemend moeiliker om tevrede te stel, en dring aan op kwaliteit, flinkheid en realistiese pryse vir produkte en dienste. Verbruikers wil behandel word as individue met individuele behoeftes en nie as deel van 'n gesiglose massa nie. Segmentasie alleen kan besighede nie in hierdie verband help nie - die noodsaaklike skuif van 'n produkgeorienteerde benadering na 'n markgeorienteerde benadering sal teweeggebring moet word deur segmentasie wat ondersteun word deur spesifieke besigheidsprosesse en tegnologieë. Besighede in die Nuwe Ekonomie sal hulle ten doel moet stel om verbruikers te behou. Hierdie doelwit moet onderlê word deur 'n verbruikergedrewe fokus. 'n Toename in die behoud van verbruikers is voordelig vir die besigheid, aangesien dit duurder is om nuwe kliënte te werf as om 'n bestaande kliëntebasis te behou. Hierdie studie maak die aanspraak dat 'n verbruikergedrewe fokus, ondersteun deur die mees moderne e-handel prosesse en tegnologieë, besighede sal ondersteun in die verkryging en behoud van 'n kompeterende voorsprong. Die studie sal fokus op die suksesse, en die bydraende faktore tot sukses, wat kan volg op die implementering van spesifiek sagteware vir Kliënteverhoudinge Bestuur (Customer Relationship Management of CRM). Die studie sal verder fokus op die redes waarom die Opbrengs op Belegging (Return on investment of ROl) vir CRM implementasie projekte dikwels ontoereikend is. Die studie sal ook die hoofredes aangee waarom soveel as 60% van alle CRM implementasies met die eerste poging misluk, en ondersoek sal gedoen word na stappe om hierdie persentasie aansienlik te verminder. Die studie sal uiteindelik aan die hand doen dat die kritiese vraag vir bestuurders nie is óf 'n CRM stelsel noodsaaklik is nie, maar watter produkte geïmplementeer moet word, en watter faktore in ag geneem moet word voor implementasie.

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