Type: Definition Essays
Sample donated: Marguerite Newton
Last updated: December 26, 2019
Abstract. In this papers, I’m going to continue discussing a previous topic which is related to assignment number 4, and the article was about “The Internet of Things Is Changing How We Manage Customer Relationships” by Ric Merrifield. I’ve chosen this topic because of Dr.FRED KOHUN’s comment which was “Very interesting point–maybe explain a bit more.
” And the point was “big data and IoT made the CRM more complicated and needed for skillful people that can make small changes that have an enormously positive influence on the customers.” I’ll try to talk about big data and internet of things that made customer relationship management more complicated, but more beneficial and needed to skilfull people. Moreover, I will discuss CRM software, tips for choosing the right CRM software, and provides some interesting examples. And I’ll talk about the impact of bad data on the business. Then, I’ll discuss an interesting topic to me which is small and medium enterprises and how they exploit CRM software. In the previous papers, I mentioned that CRM could help both big companies and small and medium enterprises, and its an excellent way to do more with less cost.
Also, things become more complicated with big data; However, it’s an opportunity to improve customer services through social media to find patterns that help to improve services. Further, I mentioned that IoT technology could involve customers via their phones as a new channel for digital services as well as customers support. It is essential to exploit the current technology right to have a competitive advantage because technology is available for every company whether big or small firms, but to get something competitors don’t have is determined by the way that technology used by owners. For example, what social media can provide to increase revenue? That’s a good question, but it would be better if we ask how we can take advantage of social media to understand customers needs better to increase revenue. Therefore, CRM software has tools that help to gather data and analyze it in an advanced way, and then analysts can interpret these data to real action decisions.
To understand how CRM now is complicated but not elusive. I prefer to start with the definition of complications, so what does complicated mean? It means “composed of elaborately interconnected parts “(Dictionary.com) In other words, consisting of many interconnecting parts or elements. However, I think lead (Potential buyers) management is a good example of that. Lead management is a set of philosophies, technologies, applications and best practices designed to turn leads into customers. (Nadeau, 2015) Also, it provides an accurate tracking of all customers through their marketing and sales activities.
Further, Lead management is like a bridge that connects between marketing and sales. And CRM is the gateway to an efficient lead management. Via CRM applications company can get a comprehensive picture of the potential buyers by data-driven lead intelligence. However, The critical advantage of data-driven lead management is stronger and marketing and sales productivity. (Vaughan, 2017) Moreover, CRM provides stronger marketing analytics by automates the process of managing, tracking, marketing and selling to whether new or existing customers through calls, emails, or social media. And that is complex because we must use a big number of data from different sources to see the market or the business process from more than one angle to make the right decisions.
For example, a Financial Services Company Scores New Clients, after incurring low win rates for new client acquisitions, a financial services firm turned to big data to better identify which new client opportunities warrant the most investment. The company supplemented its customer demographic data with third-party data purchased from eBureau. The data service provider appended sales lead opportunities with consumer occupations, incomes, ages, retails histories and related factors. The enhanced data set is then applied to an algorithm which identifies which new client leads should receive additional investment and which should not. The result has been an 11 percent increase in new client win rates while at the same time the firm has lowered sales related expenses by 14.5%.
(Schaeffer) hence, Big data with CRM software can make organization smarter than it is as well as it provides a strong “secret weapon” to compete in markets. These days, the way buyers evaluate items and services have expanded to the virtual world through social media and other buyers review. For example, if you walk into a store to purchase an item you have had your eye on. You know that another store sells a very similar product, so you immediately get onto your smartphone or tablet to compare the store prices and product reviews. The opinion of a sales associate is helpful to know, but it is also important to hear from real-life users of the products. Some researchers have reported that the second most trusted source of brand information and messaging are online customer reviews.
Furthermore, Buyers’ trust in online discussions is projected to increase from 70% to 85% within the next few years.(Socius, 2015) Thus, CRM software allows companies to stay connected to online social media, and that makes companies take steps forwards than the other competitors. Organizations must have social connectivity because as some research provides that 61% of buyers read online reviews before making a purchase decision.(Socius,2015) In fact, an online review can be a simple recommendation, sharing of images, and either a positive or negative comments. Nonetheless, CRM has helpful tools like Social Listening, by this integration tool enterprises can quickly scan what customers are saying about the company, products or services on social media. (TrackMaven.com) Another good solution With CRM is that organizations can create a central location for a companywide look at each consumer.
And that helps to ensure that questions or concerns answered in time. As can be seen, focusing on customer relationships management should always be a number one priority. Having a stable existence online where consumers are talking and exchanging opinions will help companies to understand their needs better to build stronger relationships.
Also, never underestimate the consequences of just one bad review. Although CRM can provide many benefits to organizations, yet many enterprises are not succeeding, one of the reasons is that because they rush into CRM and social integration without giving it the necessary considerations. There are some mistakes organizations are making regarding social CRM such as they don’t have a complete understanding of what social CRM is, they do not know how to leverage social CRM to enhance customers engagement to increase sales. Moreover, many organizations fail to have a comprehensive social CRM roadmap and action plan. (Myron, 2015) Therefore, it doesn’t matter what the technology is, but it does matter how to use it to make money.
Whether a large enterprise or an SMB, they need to take advantage of the CRM software solutions. Investing in CRM product required research. Firms must evaluate the various tools, and determine there strengths and weaknesses, to help organizations choose the best CRM software.
However, the 11 market-leading vendors are Act-On, Adobe Software, HubSpot, Infusionsoft, Microsoft, Oracle, Salesforce, SAP, SugarCRM, Zendesk, and Zoho.(Leary, 2015) After understanding the needs and evaluating the options, companies can implement the CRM software into the current processes. Nevertheless, CRM software should save employees’ time, increase productivity as well as provide firms with data to help them run the business more effectively. The decisions maker should think about few things before whether agree or reject invest on CRM, such as what are the goals? How long will it take to implement? What information do I need to collect to find actionable insights? Is it easy to use? And How can I motivate my staff to use a CRM?(Oetting, 2015) These questions are critical to making the right decision. Also, CRM includes customer management system, marketing automation software, and sales database software. The current features will cover most of the needs, but some organizations need to use more tools, and that depends on the business processes. Moreover, The advantage of utilizing a CRM is to put everybody in one place.
Not only that but then you can keep a log of all the conversations you’ve had with each customer or contact.(Soffront Software, 2015). I used to think that the CRM failure factors would be in implementation process or staff adaptation to a new software.
However, After I’ve read an article titled “How Much is Dirty Data Costing You?” by Larisa Bedgood. I understand the critical impact of bad data. On the other hand, I start to think about big data, and how it contains millions of data some of it good and other bad, it depends on the company needs. In this case, the critical factor is not the data by itself, but the analytics processes, analytics software, and how skillful people could customize the business needs. Nevertheless, bad data refers to information that can be erroneous, misleading, and without general formatting. Unfortunately, no industry, organization, or department is immune to it.(Vasudev, 2015).
Larisa Bedgood mentioned interesting statistical facts about bad or dirty data. For example, Inaccurate data also has a direct impact on the bottom line of 88% of companies, with the average company losing 12% of its revenue. Also,86% of companies admitted that their data might be inaccurate in some way. 44% of businesses said that missing or incomplete data is the most common problem with outdated contact information (41%) being the second biggest problem.(Bedgood, 2015). The low-quality data can have a critical and direct impact on the decisions of any firms. Nonetheless, CRM systems are the most systems affected by bad data, so how does the bad data occur? And how to increase the data quality? First, dirty data occur when there are missing data, wrong or inaccurate data, inappropriate or duplicate data, and poor data entry like a misspelling.
(Vasudev, 2015) For example, a Retail company found over 1m records contained a home telephone number of “000000000” and addresses containing flight numbers, or Healthcare company found nine different values in gender field.(Bedgood, 2015). Second, to boost data quality companies should focus on all channels that used to collect data such as branch locations, sales teams, website, call center, and apps. Moreover, study results about the channels used to collect contact data, 73% of companies collect data from their website, 60% gather data from face-to-face sales teams, 54% raise data from call centers, and 47% receive contact data via mobile sites or apps.(Bedgood, 2015) However, the RingLead Inc provides some steps to improve data quality. In the beginning, Identify data entry points by determining how the information enters the system and which channels show excessive errors. Then, Train staff -with an initial focus on staff members that work in high volume channels as well as Provide education regarding the importance of information, together with quality control checks.
Otherwise, Automated tools by use tools to prevent the entry of inaccurate data and to maintain high data quality. Inaccuracy is unavoidable, whether due to human error or due to data migration which is the process of transferring data from one system to another while changing the storage, database or application (dataintegration.info), so the use of the CRM services and tools is necessary to avoid unpleasant issues. Even though CRM is a perfect solution for small and medium enterprises, yet many SME’s have not used it maybe because of a false idea that CRM software designed for prominent organizations.
Thus, this is keeping many SME’s away from investing on CRM and enhance their customer’s services; as a result, they have bad customers management. Some experts have predicted that by the year 2020, customer service will beat price and product quality and become the first brand differentiator.(Chaudhuri, 2015) In other words, who will be able to understand the customers throughout CRM and provides extraordinary customer services, will survive. CRM systems can provide many benefits to SME’s for example, Customer Data Management, Lead Management, and Sales & Marketing Automation also many other services. Therefore, Once small businesses have CRM by their side, they will automatically develop a tight grip over their business process. Customer relations will improve which will result in a better and continuous flow of ROI.(Chaudhuri, 2015). CRM is for all businesses whether small businesses like a little restaurant or big firms like Amazon, following is an interesting example of a small company called Munchery that provides a delicious alternative to standard food delivery.
High-quality meals created by talented chefs are delivered directly to a customer’s home, office, or any other location. By supplying customers with food that was ready to eat, whenever and wherever a customer was in the mood, Munchery soon discovered that managing their growing number of repeat customers while also catering to new ones was becoming overwhelming. A CRM solution that involved an integrated proprietary app used by their drivers made it possible for last minute order changes to be implemented at a moment’s notice, resulting in happier customers and better returns. As CTO and Cofounder of Munchery, Conrad Chu, explains, “Our goal is to go above and beyond so that ultimately we can turn someone from a frustrated customer into an evangelist.
” Additionally, Munchery uses CRM to monitor performance, measure customer satisfaction. Track the ordering process, and share feedback with their chefs.(Salesforce.com).