Consumer Relationship Management

Corporate Governance Finals Written Report

Prepared by: Group 3

Aedrian Olgado
Nico Aquino
Janzen Damaso
Lean Marcos
Aaron Sollestre

Consumer Relationship Management

Also known as CRM is a system designed to further analyze just how organizations can
better establish and maintain positive relationships with customers.

From the organization's point of view, this entire relationship encompasses direct
interactions with customers, such as sales and service-related processes, and forecasting
and analysis of customer trends and behaviors. Ultimately, CRM serves to enhance the
customer's overall

Consumer Stakeholders

Individuals who purchase, use, and dispose of products for themselves and their homes.

Responsibilities to Consumers

With CRM, customer satisfaction is now a responsibility, because of the evolution of the
customers roles from being central target as buyers, into equally important stakeholders.

To provide and maintain a constant supply of goods and services with desirably quality
To improve the standard of living through high quality products and services
Treating the customers equally in different aspects of the business interaction

Issues

Economic Issues
Legal Issues
Ethical Issues
Philanthropic Issues
Economic Issues

The consumers are primary stakeholders because their awareness, purchase, usage and
repurchase of products are vital to a companys existence. However, there are instances where
they commit illegal acts to the expense of the organization or business.

Consumer fraud results from intentional deception to derive unfair economic advantage
from an organization. Examples are as follows:

- Shoplifting
- Collusion
- Duplicity
- Guile

Buyer/seller disagreement can result in

fraudulent activities. An example is:

- The products are not meeting expectations

Legal Issues

Consumer Act of the Philippines R.A. 7394

It is the policy of the State to protect the interests of the consumer, promote his general welfare
and to establish standards of conduct for business and industry. Towards this end, the State shall
implement measures to achieve the following

Objectives:

Protection against hazards to health and safety;

Protection against deceptive, unfair and unconscionable sales acts and practices;
Provision of information and education to facilitate sound choice and the proper exercise
of rights by the consumer;
Provision of adequate rights and means of redress; and
Involvement of consumer representatives in the formulation of social and economic
policies

Ethical Issues
As a recurring issue in all forms and aspects of business, Ethical Issues are also tackled in CRM.
There are ways to retain fairness between customer and businesses, one is example is:

Consumerism

The movement to protect consumers from an imbalance of power with business

and to maximize consumer welfare in the marketplace

Consumer Bill of Rights

Right to Choose
o To the extent possible, consumers have the opportunity to select from a variety of
products at competitive prices. This right is based on the philosophy of the
competitive nature of markets, which should lead to high-quality products at
reasonable prices.
Right to Safety
o This means that businesses have an obligation not to knowingly market a product
that could harm consumers.
Right to be Informed
o Any information, whether communicated in written or verbal format, should be
accurate, adequate, and free of deception so that consumers can make a sound
decision.
Right to be Heard
o This right relates to opportunities for consumers to communicate or voice their
concerns in the public policy process.
Right to Redress
o Consumers have the right to express dissatisfaction and seek restitution from a
business when a good or service does not
meet their expectations.
Right to Privacy
o Consumers need to be aware of how personal data are collected and used; and
firms must protect this information.

Philanthropic Issues

Organizations are increasingly linking philanthropic efforts with consumer interests in order to
strengthen ties to consumers.

However, some organizations do this only for the sole purpose of promotion, whether be it a
product or their reputation. Also, there are organizations who fake philanthropic efforts to
achieve better status.

Strategic Implementation
As a system that will be ever present in the world of consumer service, the implementation of
CRM needs a well-planned strategy in order to properly function. This includes short term tactics
that are laid out across the stratagem to be used in specific situations. Examples of such tactics
are:

Include community views in corporate planning

Manage, nurture, and continuously assess community relations and needs
Educate and listen to consumers; run surveys to discover strengths and weaknesses in
stakeholder relations; hire consumer affairs professionals; and develop a community
relations office

Additional Notes: Strategy and Tactics are similar in nature but still different altogether. Tactics are the actual
means used to gain an objective, while Strategy is the overall campaign plan, which may involve complex
operational patterns, activity, and decision-making that govern tactical execution.

Importance of CRM

Customer Relationship Management is the strongest and the most efficient approach in
maintaining and creating relationships with customers.

CRM is not only pure business but also ideate strong personal bonding within people.
Development of this type of bonding drives the business to new levels of success.