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Advances in the 1990s

In the 1990s companies began to improve on Customer Relationship Management by making it

more of a two-way street Instea! of simply gathering !ata for their own use" they began giving
back to their customers not only in terms of the obvious goal of improve! customer service" but
in incentives" gifts an! other perks for customer loyalty
#his was the beginning of the now familiar fre$uent flyer programs" bonus points on cre!it car!s
an! a host of other resources that are base! on CRM tracking of customer activity an! spen!ing
patterns CRM was now being use! as a way to increase sales passively as well as through active
improvement of customer service
1.4 Introduction
Customer Relationship Management - CRM
#he generally accepte! purpose of Customer Relationship Management %CRM& is to enable
organi'ations to better serve its customers through the intro!uction of reliable processes an!
proce!ures for interacting with those customers
In to!ay(s competitive business environment" a successful CRM strategy cannot be implemente!
by only installing an! integrating a software package !esigne! to support CRM processes )
holistic approach to CRM is vital for an effective an! efficient CRM policy #his approach
inclu!es training of employees" a mo!ification of business processes base! on customers( nee!s
an! an a!option of relevant I#-systems %inclu!ing soft- an! maybe har!ware& an!*or usage of I#-
+ervices that enable the organi'ation or company to follow its CRM strategy CRM-+ervices can
even re!un!anti'e the ac$uisition of a!!itional har!ware or CRM software-licences
#he term CRM is use! to !escribe either the software or the whole business strategy oriente! on
customer nee!s #he secon! one is the !escription which is correct #he main misconception of
CRM is that it is only software" instea! of whole business strategy
Ma,or areas of CRM focus on service automate! processes" personal information gathering an!
processing" an! self-service It attempts to integrate an! automate the various customer serving
processes within a company
#here are three parts of application architecture of CRM-
operational - automation to the basic business processes %marketing" sales" service&
analytical - support to analyse customer behaviour" implements business intelligence alike
cooperational - ensures the contact with customers %phone" email" fa." web&
/perational part of CRM typically involves three general areas of business #hey are %accor!ing
to 0artner 0roup& a 1nterprise marketing automation %1M)&" +ales force automation %+2)& an!
a Customer service an! support %C++& #he marketing information part provi!es information
about the business environment" inclu!ing competitors" in!ustry tren!s" an! macroenviromental
variables #he sales force management part automates some of the company(s sales an! sales
force management functions It keeps track of customer preferences" buying habits" an!
!emographics" an! also sales staff performance #he customer service part automates some
service re$uests" complaints" pro!uct returns" an! information re$uests