Customer relationship management in information technology

customer relationship management in information technology

The Integration of Technology in Customer Relationship Management (CRM) It gathers information from the customers through the use of internet that makes. It uses modern information technology tools as input to collect useful data from This concept is called a customer relationship management (CRM) system [2]. Information technology and information systems have a significant role in CRM . of CRM, we will describe the technology factors such as data.

It would also help companies to be more updated so that they would be able to beat the competition and make their company one of the best. Technology integration has many effects for the betterment of CRM. CRM cannot survive without technology. Technology serves as the partner of CRM in order to cater the needs of the customers. It makes their relationship meaningful in a way that the company understands what the customers need.

They become aware if the customers are satisfied enough on their products and services if not, it would be easy for them to look for strategies to make them satisfied.

customer relationship management in information technology

Databases serve as the soul of CRM. It would not become functional without the use of technology. Databases help collect data and make it organized before using it to serve its purpose. It gathers information from the customers through the use of internet that makes communication faster. Online services for the customers.

Since there is no impossible when it comes to technology, the relationship between the company and the customers would become stronger through the use of media technology such as the social media.

Even though they are far from each other, negotiating is not that hard to achieve. Researchers and professionals often assume that investment in IT will lead to gains in both profits and productivity [6]. Accordingly in large industries, accomplishments caused by usage of IT are assessed in saving, more variant performance and proficiency frameworks and in smaller organizations its advantages are more obvious.

The Integration of Technology in Customer Relationship Management (CRM)

Also more investment on IT has positive correlation with cost reductions. As other results of IT, it can be mentioned reduction in new product development and manufacturing time, utilizing corporative skills of employees, expanding organization activity areas by creating closer relationship with customers, distributors and partners.

Different functions of IT are mentioned by different researchers, and generally IT plays a key role in business of organizations, Fig. Communication improvement, coordination and interaction Customer services improvement [7,12] Stable growth with customers, colleagues, and suppliers [7,8,9] [14,15] Achieving competitive advantages and Efficiency increase and direct opportunities and competitiveness and indirect cost reductions IT benefits and functions power increase [7, 9, 12, 16] [7,9,10,11,12] Sales increase in national and Marketing improvement [9] Expanding current market and tendency and international class [7, 9, 11, 13] intend to new markets [7, 9, 12] Figure 1.

CRM and Information Technology

Customer relationship management Customer relationship management is based on customer's data and is facilitated by usage of IT. In fact, CRM is a modern and developed tool for data mining of customer's data which is supported by using of various communication points in system and create comprehensive point of view from customers.

Customer relationship department acts as watcher in a ship. This watcher enhances quality of products by understanding needs and expectations of consumers and reflecting them to producer. CRM is an example of relationship marketing that aims to retain customers, build lasting relationships, and maximize customer value for the company [16]. Customer management itself is not a new concept.

The development in the mids of customer management techniques using IT termed CRMwith the IT being used to track multiple activities of customers, distinguishes CRM from earlier approaches to customer management [17].

In fact, it can be said IT is necessary and vital factor in CRM but is not sufficient factor and it needs using other tools too. In some enterprises, CRM is only a technology which is caused organizational activity improvements by developing databases and sales automation tools and as well as connecting sales and marketing duties. This comprehensive strategy strives to achieve knowledge by customer's data collection and analyze them with regarding to customers through effective utilizing of IT and thereby, establish effective relationship with customers and make common customer-oriented culture and eventually conduct organizations in achieving long-term benefits.

CRM is a designed process to collect data related to customers, to grasp features of customers, and to apply those qualities in specific marketing activities [18]. Early in the conceptualization of CRM in the field of marketing, Parvatiyar and Sheth explored the conceptual foundations of CRM based mainly on the relationship marketing concept.

Compared with the relatively simple database marketing approach, CRM requires more complex and company-wide systems [16].

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Such programs may be directed at loyalty building, but other uses are also in evidence [17]. New technologies in supporting of CRM IT advancements have changed different field of marketing and business environment. It helps companies improve the effectiveness of their interaction with customers while at the same time making the interaction intimate through individualization [20]. Customer analysis in analytical E-CRM includes two major procedures: This is considered as a tool which empowers CRM with utilizing advanced wireless communication tools.

This new technology can even allow call centers to contact their customers more frequently to offer new services and improve the relationship between the companies and their customer [21]. Variant functions of IT in CRM From a technological perspective, IT is considered an enabler that allows organizations to foster closer relationships with customers, analyze customer information and provide a coherent view of the customer [22]. Information recording technology and customer behavior analysis allow to companies to identify 62 Mahdi Bahrami et al.

No doubt technology is essential to CRM implementation. Collecting customer data, disseminating, using and integrating them within the firm, requires technology [17]. Chircu and Kauffman argued that a firm can obtain a sustainable competitive advantage if it uses IT capabilities to exploit specific organizational resources that are unique, difficult, or costly to imitate, and if other firms cannot acquire or build them fast enough [23].

customer relationship management in information technology

IT systems provide acquisition, storage and accessibility of customer information as well as for its analysis which we hypothesize to be both positively associated with performance [24, 25]. Also IT investments in tangible and intangible effects on the organization that will be important in this mechanism is given in Figure 3.

A conceptual model of the effects of IT investment on organizational productivity CRM implementation can be viewed as the integration of strategic customer data utilization into a loyalty scheme through the use of IT. Improvement programs arising from new business processes, such as CRM, are directed by the IT, almost exclusively. Particularly, the experience of the IT service provider across some CRM implementations for clients was felt to be effective.

When IT has been utilized properly, it can help to detain customers by better managing customers based on knowledge and initiating stronger relationship. Introducing proposed framework In previous section, functions of IT in CRM discussed from point of view of various researchers. Those points of view are not comprehensive, so a result from key and important functions which include other detailed and effective factors is presented in framework format; see Fig.

customer relationship management in information technology

Mahdi Bahrami et al. It should be mentioned that engineers and employers of different projects should try to produce the greatest improvement with spend less resources.