Customer Relationship Management (CRM)
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Customer Relationship Management (CRM)
Introduction
CRM involves a different kind of strategies that can be useful for companies when interacting with their potential customers. As a result, they help the business become customer kings, as an organization will understand customer relationships better. However, this tool is useful in companies creating the need for this paper to delve into how the CRM is overused in the organizations. Also, the paper will look at the challenges and opportunities of CRM
The Current Overuse of Customer Relationship Management
The companies are increasingly using this method of customer tracking system that is causing issues of trust and fairness when they engage customers. Also, the use of CRM involves bonus schemes given to customers. When other customers who do not get these bonus schemes consider it to be an issue of favoritism. Also, organizations may record incorrect data while using CRM, which will be just a waste of time (Thakur & Workman, 2016). Due to this, organizations may collect large amounts of data that may be difficult for business managers to analyze.
Challenges and Opportunities
Challenges
Several challenges may affect the use of CRM tools, which include technological problems and wrong selection of tools. The use of CRM may be limited when the employees in the organization do have adequate skills to operate the system in the organization. Besides, the large amount of data provided by the use of CRM may be challenging to analyze (Buttle & Maklan, 2019).
Opportunities
CRM implementation is an excellent chance to ensure that an organization grows its business. In this regard, a business organization can increase the number of potential customers. Because of this, the company gets an opportunity to increase its revenue, which can be important for sustainability (Hassan et al., 2015). The use of CRM ensures that there is the centralization of all customer data. The information will be useful in managing and measuring marketing sales, doing the business to know how to improve its customer service.
References
Buttle, F., & Maklan, S. (2019). Customer relationship management: concepts and technologies. Routledge.
Hassan, R. S., Nawaz, A., Lashari, M. N., & Zafar, F. (2015). Effect of customer relationship management on customer satisfaction. Procedia Economics and Finance, 23(1), 563-567.
Thakur, R., & Workman, L. (2016). Customer portfolio management (CPM) for improved customer relationship management (CRM): Are your customers platinum, gold, silver, or bronze?. Journal of Business Research, 69(10), 4095-4102.