D

DATE :10 TH JULY 2022

Management
Information System
Assignment
GROUP MEMBERS:

K M ABDULLA AQDUS: FM-2088

MEGHANA D: FM-2019

NIDHEESH S: FM-2038

RONY PETER: FM-2079

SRETHA HARIDAS: FM-2112

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
A tool known as customer relationship management (CRM) is used to handle all interactions
and relationships between your business and its clients. The objective is straightforward: to
strengthen business ties. CRM systems assist businesses in maintaining contact with clients,
streamlining procedures, and boosting profitability. Platforms designed to manage
marketing; sales, customer care, and support are examples of CRM systems. These
platforms are interconnected to aid businesses in operating more efficiently. Businesses can
evaluate customer interactions and enhance their customer relationships with a CRM system.

CRM PROCESS:

There are mainly five steps involved in the process of customer relationship management
and they are:

1. Generate brand awareness:

To attract new clients, you must first present them to your enterprise. The marketing team
often undertakes this activity using the following methods:
 a. Gaining knowledge of your target audience: Marketers will carry out research to
determine the target demographics, interests, preferred means of communication;
types of messaging that are most effective with them, and the issues that are important
to them.

b. Segmenting your target market: Based on comparable interests or demographics,

audience personas are developed to divide a brand's target market into like-minded
groups. This aids marketers in determining the target demographic for their
campaigns and the demographics most likely to become consumers.

c. Designing marketing initiatives that appeal to the target market: What works
can be found through marketing automation and A/B tests.

2. Acquire Leads:
The moment a potential consumer is introduced to your brand, the CRM process does
not actually begin. After that, you must inspire them to learn more about and engage
with your business. The task of acquiring leads may come within the purview of the
marketing team, the sales team, or possibly both depending on how your firm is set
up. For instance, to encourage website visitors to submit their email address, your
marketing department might utilise a CTA for a social media giveaway or a CTA for
newsletter signup. On the other hand, sales may use their CRM system to set up live
chat on your website. Your team will be able to get in touch with website visitors who
might end up becoming customers with the aid of this feature.

3. Convert Leads into Customers:

The leads are intrigued because they are engaged successfully. Then it’s time to
convert those leads into paying clients now. Sales representatives must first be adept
at assessing the level of interest of leads, and more precisely, if they are interested
enough to make a purchase, in order to do this. Here, a CRM is highly beneficial. To
determine lead-qualification criteria, one can refer to historical data from prior
profitable transactions. To assist reps in locating chances with the best chance of
closing a deal, these criteria can be added as "attributes" to the lead-scoring feature of
your CRM.Reps must be able to nurture leads further and gain their trust sufficiently
for them to convert if they do appear likely to make a purchase. Reps can do this by,
among other things
4. Provide superior customer service :
The lead has been successfully turned into a customer. Then, they must retain their
consumers if they want their business to expand. According to Zen desk’s 2020
Customer Experience Trends Report, a consumer's loyalty to a brand is largely
influenced by the level of customer service. On the other hand, offering subpar
customer service might cost you clients and damage your reputation. The ability to
provide exceptional service whenever, wherever, and however their clients require it
is a requirement for support teams. A speedy resolution of their problem, according to
 49% of customers, is what makes for a positive customer service experience. Using
CRM software, assistance.

5. Drive Upsells :

When they think of a returning client, they picture a shopper who frequently visits the
same store to buy the goods they are familiar with and love. Existing customers can
also provide value by upgrading to more expensive models, which is another
important way. How can you persuade consumers to switch brands? Email
recommendations that are specifically tailored are a fantastic place to start. Based on
comparable purchase histories, you can group clients into smart lists using your CRM.
Then you can develop unique email templates to distribute pertinent product releases
to large client groups at once. You can be certain that the promotional offers or
releases you send are reaching the customers who are most inclined to purchase them
in this way.

ANALYSIS OF CRM PROCESS

PEST ANALYSIS

1. Political Elements

CRM for e-government focuses on the needs of users of online government services.
Public organizations provide a variety of substantial services to their clients. A variety
of online alternatives, including passport processing and tax filing.

CRM application providers should pay greater attention to the security element while
building the CRM applications because acquiring customer data is one of the key
purposes of CRM and can pose security problems when utilized for e-government.
Particularly sensitive information comes from governments.

With technology advancements, global competitors from all over the world are
influencing CRM applications to better grasp the needs of global customers for
building strong relationships with them. Relationships of this kind are distinct from
those in the local market; therefore, CRM may be impacted by diverse cultural norms,
vast amounts of data, and other factors.

2. Economic Elements

In lower economic performance, organizations or governments need CRM more than

others.With technology advancements; global competitors from all over the world are
influencing CRM applications to better grasp the needs of global customers for
building strong relationships with them. Relationships of this kind are distinct from
 those in the local market; therefore, CRM may be impacted by diverse cultural norms,
vast amounts of data, and other factors.

When creating CRM applications, the organization's budget should also be taken into
account; more expensive programs can only be employed in extremely large
businesses, therefore different types of applications are required for different budgets.
Low or high foreign exchange position can reduce or raise the purchasing power,
which has immediate effects on market conditions, particularly on the global market.

Social Elements

Lifestyles: Different lifestyles can be used to create marketing campaigns, position

products, and create market segments. Consequently, it affects CRM both directly and
indirectly.

Purchasing patterns: Organizations should understand their consumers' purchasing

patterns and needs in order to predict future purchasing trends and identify new
opportunities to strengthen existing relationships.

Employee’s business knowledge: Organizations should motivate their employees to

be absolutely customer centric. CRM problems come from employee’s hesitance to be
more customers focused so the result is an expensive customer strategy to retain
customers.

Technological Elements

IT for data warehouses: Data is stored in a data warehouse. Data warehousing

converts customer-related data into customer intelligence to determine the behaviour
of the customers.

Enterprise resource planning (ERP) systems: CRM seeks to connect front and back
office applications to sustain the customer relationship and create devoted customers.
ERP systems act as a strong foundation for CRM. ERP systems combine all business
functions with suppliers and clients.

Internet: Because customers may contact businesses via the internet whenever they
want to, it has the potential to change how customer care is provided.

Telecommunication and media technologies: CRM requires social media to more

effectively service consumers, provide support, improve the customer experience,
assist customers in their preferred channels, and collaborate with customers.

HOW CRM FITS IN INFORMATION SYSTEM?

CRM is made up of various parts that work together to improve how well businesses manage
their clients, leads, and partners. These elements consist of:
1. Management of leads- Companies use this element to manage leads or data about
potential consumers.

2. CRM typewriting- Businesses employ this element to ensure that their strategies are
targeted at the appropriate markets or customers.

3. Management of marketing- Companies employ this element to guarantee that the

marketing of their goods and services to their target markets is effective.

4. Sales Administration- Businesses utilize this element to ensure that their sales efforts are
focused on the proper leads or clients.

5. Management of customer service- Businesses employ this element to ensure that they
can provide top-notch customer service to all of their clients, leads, and partners.

As a result, the fundamental tools utilized by organisations to enhance their client

connections are the CRM components. Additionally, the elements of CRM work together to
assist businesses in developing a system that enables them to better understand their
consumers and provide excellent customer service.

PURPOSE OF CRM IN MANAGEMENT INFORMATION SYSTEM

CRM is a tool used by organizations to manage relationships with leads, partners, and current
and potential clients. To collect and analyse data about their interactions with clients, leads,
and partners, some companies have developed CRM-compatible systems. By examining this
data, businesses can ascertain how well they are now able to serve those customers, leads, or
business partners. CRM offers numerous advantages to businesses as well. Businesses must
discover more about their customers. Customers have different needs from one another
depending on their wants. Therefore, in order to effectively change their offerings to satisfy
their needs, businesses must fully understand their customer base. CRM components are
frequently included in systems that assist other business processes like marketing, sales,
service management, etc.

Advantages of CRM

1. It allows for more effective sales and marketing.

Having huge amounts of data on customer interactions enables an organization to build up a
clearer picture of its customers. It allows for deep insights to identify what the company is
doing right as well as where it’s weak when it comes to managing its customers. With a CRM
system, the most profitable customers can be identified, with the view to more time being
spent targeting them. The CRM software also lets a business tailor its marketing
communications to achieve more effective results and, hence, a greater return on investment
in sales and marketing.

2. It can speed up the sales conversion process.

A CRM system integrated within a marketing campaign allows insights into the interests of
prospective customers. Once the client enters the sales funnel, qualification and conversion
can be full or partly automated making it much faster. This, whilst enhancing the sales
experience, also frees up the sales team’s time, enabling them to focus on closing high
probability and/or high-value deals.

3. It increases staff productivity, lowers time costs and boosts morale.

Quaint as it may seem, paperwork is still a significant part of many businesses’ day-to-day
operations. A lot of that paperwork could be eliminated with a CRM system. Cutting down
on wasted time increases the ability of the employee to get on with the kind of work that
brings real value to the organisation. Slashing busy-work means that profit per employee
rises, all the while increasing morale as staff feels that their work is more essential and
rewarding. All of this fits neatly in with the kind of lean management practices that high-
performing businesses utilize.

4. It enables widely dispersed teams to work closely.

Companies often have parts of their operations away from their home base for a multitude of
reasons—cheaper operating costs, proximity to clients, or greater ease in providing on-site
technical support. A remotely accessible CRM software allows a company to exploit the
efficiencies and benefits of multiple geographical locations. This is a huge advantage for
sales teams in the field as it gives them the facility to spend more time with prospects and
clients. Most importantly though, an organisation fully integrated by means of a CRM system
can respond far more effectively to customer queries and issues.

5. Can improve customer loyalty through exceptional experience.

The hallmark of excellent customer service is being able to intelligently and quickly address
queries and problems. This can only be achieved by being able to efficiently access
customers’ data and transactional history allowing for instant familiarization with their
context and needs. A CRM system helps speed up processes, enabling employees to deal with
more queries and providing a generally better customer experience. An investment in a CRM
system is an investment in customer loyalty and the return on that investment comes in the
form of an increase in customers’ lifetime value and word-of-mouth referrals.

CHALLENGES
1. Cost: Cost is one of the biggest obstacles firms encounter when deploying a CRM
solution. Yes, if done hastily and without thorough planning, it could end up being an
expensive affair. Here, it's wise to consider why your company needs a CRM. This should
provide a clear image of the kind of CRM system needed and the implementation methods
that will be used, ultimately assisting in the establishment of a budget for the system.
Therefore, blindly adopting your competitors' CRM techniques is like to shooting in the dark
and could end in total failure. Therefore, it is wise to talk to all of the selected CRM providers
about the total cost of ownership, IT resources, hardware or software, etc.
2. Set clear objectives: One of the secrets to a successful CRM setup is clearly defining
the goals a company wants to accomplish with the system. Additionally, it is a good idea
to work on making these goals into quantitative measurements. Failure to do so could
make it challenging to assess the system's ROI or fundamental benefits. Next, it's time to
consider the system's expected functionalities. Do you intend to use it for sales,
marketing, customer service, or all of these purposes? What issues do you hope to solve
with the system? The first step to a successful CRM implementation is having a clear
understanding of the goals and essential system functionality that are needed.
3. Deployment Type: On-premises vs. cloud is the main topic here! Before choosing
between on-premises and cloud, it's a good idea to compare the set budget with the total cost
of ownership, which should take into account costs for all the resources needed, maintenance,
updates, infrastructure, etc. This comes down even more to business preferences, the industry
that the business is in, etc. Create a specialized CRM team within the company with
representatives from top management, the IT department, senior executives, customer
service, and end users to discuss their daily challenges, the causes of their inefficiencies at
work, suggestions for increasing productivity, etc. This ought to paint a clear image of the
deployment type that is most appropriate for your company.
4. Training: The company-wide training it requires is another common issue with CRM
deployment. This necessitates involving all possible consumers from the very beginning.
In fact, it is advisable to include all potential system users from the beginning of the
decision-making process, if at all possible. Choose essential employees from each
department who can receive comprehensive training. Eureka is these employees become
the newly launched CRM system's advocates, which greatly aids in educating their
fellow team members.

5. Plan out Integration Needs In Advance: For the majority of firms choosing CRM
solutions, integrating CRM system with other company administration solutions like
ERP, payroll, etc. is at the top of their "wish list." To minimize CRM implementation
overkill and information overload for your staff, it is advised to prepare any integration
needs well in advance. Planning a phase 2 for integration requirements once the
organization has adopted the CRM system would be a wise move in this situation.

6. Hire the right crm solution provider: The key to a successful implementation is
bringing in the appropriate CRM system provider or partner. Pick a partner who can
assist with pre- and post-implementation plan if possible. And before you sign on the
dotted line, it's crucial that your partner lays out all the implementation risks on the table.
CRM Implementation is an important and a crucial step in the CRM buying process. It is
a make or a break situation where it can totally go kaput or be seamless. It is in this stage too
that all the data is migrated to the new platform and since the data is of a crucial nature,
utmost care needs to be taken during the migration.