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CUSTOMER RELATIONSHIP MANAGEMENT

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CUTOMER RELATIONSHIP MANAGEMENT

name

Swinburne University

System Acquisition & Implementation Management

17 Nov 2017

CUSTOMER RELATIONSHIP MANAGEMENT

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Abstract

Successful businesses need effective strategies of managing their relationship with their

consumers. Establishing a good customer relationship management strategy is one of the surest

ways to increase a firm’s profitability. However, if a firm lacks a good system to manage and build

its relationship with its clients, the firm is bound to suffer losses which will consequently lead to

a bad reputation for the firm. This paper, therefore, aims to identify issues in the current

customer relationship system adopted by ICS ltd and to propose possible solutions to these

problems. The paper will additionally evaluate strategies that should be adopted by the firm

during acquisition and implementation of CRM solution.

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Customer Relationship Management System

A Customer Relationship System (CRM) is meant to benefit the company. It is not just a

technology but a strategy adopted by the company to manage the relationship between the firm

and its clients and to retain and attract more clients. This system should help a firm learn more

about clients’ needs and consumerism behavior to build stronger relationship with its clients. If

the system is not managed or installed appropriately, the system is bound to fail. This paper tries

to assess the reasons why the current Customer Relationship System implemented by ICS was

not a success and provide possible solutions to the current issues affecting ICS CRM system.

Problems in the acquisition and implementation of Customer Relationship Management

System

Before acquiring a CRM system, a preliminary assessment of why the firm needs the

system is important. Additionally, it is important to identify specific benefits expected from the

system and how the firm will benefit from acquisition of such a system. It is evident that ICS needs

a more sophisticated system that can be used to accurately manage customer records and data

formats. Some of the benefits expected from a system that accurately manages customer record

and other essential data include understanding customers’ needs, tracking spending habit of

firms’ clients and shifting more focus to more profitable customer all of which eventually leads

to more sales. Ultimately, a good CRM is bound to increase a firms’ profitability and thus its

acquisition and implementation should be done in a meticulous manner (Wagner-Marsh).

In most cases, CRM systems fail because either the acquisition of the system was not

properly handled or the system was not properly implemented and integrated. The factors that

need to be considered include the following: the required CRM software features, the

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constituents expected to be supported by the software, the processes to be supported by the

software, customization that will be needed to support firm’s operations, compatibility of the

system and other firm’s operations, the ease of access and navigation of the system, why the

firm needs CRM software and whether it is the best solution for the firm, the personnel expected

to manage the CRM and the amount of money the firm is willing to pay to acquire the software

(Rouse, 2014).

The main common features of a good CRM system are its market automation ability, sales

force automation, contact centre automation and location based services (Rouse, 2014). Before

acquiring a CRM system one should ensure the system possesses these basic capabilities. The

current CRM software implemented by the firm was chosen by the David Green (the managing

partner) and Sarah Lee (the national marketing director) because it was supplied by an

acquaintance of the Managing Partner. This move was wrong because a recommendation from

an associate should not have been the main reason why they chose that particular software. The

choice of a CRM system should evolve around people, process and technology (Chen & Popovich

2003, pg. 673).

The approaches taken by the firm to acquire CRM system differ depending on the needs

of the company. Generally, the whole process should involve the personnel who will deal with

acquisition and implementation of the system, firm executive members and firm’s decision

makers. Before selecting vendors, the first step to acquiring a CRM system is to ensure that all

stake holders involved in the acquisition, implementation and integration of the system are

aware of the different systems available and their core set up processes.

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Apart from being aware of the different types of CRM systems available, management

needs to define the scope of the system; it is essential to identify all the operations that will be

directly impacted by its implementation. This will dictate the kind of features that the CRM

system should have (Barrington, n.d.). ICS Service is trying to integrate five separate practice line

and thus the CRM system that was selected should have had the capacity to incorporate all five

practice lines. If these were considered before selecting and implementing the current CRM

system, Felix Chan (an analyst in the professional services practice) would not be experiencing

any issue with customer records and data formats. Additionally, James McKay and his staff would

have easily installed and integrate the CRM system into the five separate lines.

Acquiring a CRM that perfectly fits a firm’s objective is a complicated task. Input from

every team player is essential. As can be noted, the IT infrastructure leader and his staff were not

involved in the purchase process, yet they were expected to implement the CRM system. This

was a wrong move. Successful implementation of a CRM system begins with understanding CRM

terminology and how it operates (Mishra & Mishra 2009, pg. 84). The CRM software selected by

a firm should benefit the firm instead of causing frustrations. If an appropriate CRM system had

been selected, the whole project would not have been problematic form the start. In addition to

this, the firm should have selected the right CRM vendor who would not only provide CRM

software but also be a part of the implementation process. Furthermore, internal teams and the

management should have been fully engaged in the entire process. When a CRM system is,

under-resourced or lacks support from to management, implementation of the system is bound

to face many challenges (Boardman, 2008).

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Issues with customer records

When implementing a CRM system firms should not assume that they will not experience

any data problem. The success of any firm depends on the consistency of good decisions made

by the firm. Good decisions are made only and only when the firm can access accurate

information which can be generated from reliable and relevant data. A firm needs to come up

with a way of transforming raw data into good strategy information. Some of the possible

problems that might have been facing customer records and data managed by the firm include

missing key information, duplicate records, out of date information, unverified or invalid data,

lack of conclusive conclusions, and privacy concerns (Target Marketing, 2013)

When inappropriately installed, a CRM system is bound to quickly develop flaws. Due to

the fact that success of CRM depends on how it can effectively provide insights on customers’

data, data issues portrayed by the system should not be ignored. Data issues can make CRM

system ineffective and thus may cost the firm. Problems such as duplicate records and invalid

data may arise due to poor data entry. CRM, just like any other management information system

is prone to errors. Data entry is the process through which most customers’ data is entered into

the system. This can be done by anyone and, thus, is unavoidable. The only way this can be

avoided is through properly training data clerks and all personnel who are expected to access the

system (DQ Global, 2014).

Flaws in customer records may also arise due to data being converted from one format

to another. The implementation of a new customer relationship management system may have

forced the marketing team to convert data from the former format to a format that is compatible

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with the system which may have consequently flawed customer records. Such conversions may

interfere with key pieces of customers’ information (DQ Global, 2014).

Apart from data conversion, migration of data from one system to another can also result

in flaws in customer records. The moment data is moved from an older database to a new

database there is risk of losing vital data, data integrity maybe compromised and an increased

likelihood of semantic and interference risks. Fortunately, such risks can be avoided through

comparing data moved from one database to the next. This comparison should be in depth. The

validation of data and management of this data should be done at the organizational level to

avoid interference and compromising data integrity (Chellamuthu, 2014).

Data migration can be a complex task, especially when dealing with voluminous data. In

most cases, complexities associated with data migration are underestimated. If performed in a

quick and dirty manner, customers’ data is bound to be flawed. Some of the strategies that can

be adopted to minimize the chances of having issues with customer records due to data migration

is by cleansing data before inputting it into the new CRM system. All existing data should be

migrated as it is. Input of erroneous data into the new CRM system is unavoidable. In addition to

transferring all data without changing anything, it is essential to perform a thorough assessment

of legacy data. This is done to identify potential duplicate data and to draft a plan to converting

legacy data into the appropriate data format. Such strategies may be costly to a firm in the short

run but plays a huge role in minimizing flaws in customer records (Chipman, CRM Data Migration

Strategies, 2010).

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Data duplication is a common issue in firms that manage voluminous customer data using

CRM system. In most instances, this problem tends to be unavoidable and may require a costly

solution. This problem may necessitate services from a third party, change of company culture

or entirely funding a whole new solution. Duplicate data is an issue that should never be ignored

because it may cause enormous losses to the firm. Eliminating duplicate data from a CRM system

is impossible. However, one of the best approaches is to incorporate a mechanism through which

every record input into the system is checked. Additionally, guidelines that guide the staff when

inputting data into the system should be developed. Alternatively, the firm can resort to using

powerful software to counter data duplication menace (Master Soft, 2017).

Successful acquisition and implementation of a packaged CRM application

Acquisition of CRM software is a costly endeavour any firm can undertake. Therefore, it

is essential that caution should be taken when choosing an appropriate system. Purchase

decisions should be based on why the firm needs a CRM system. The decision makers within the

firm need to understand the concept of CRM system to understand the exact reason the firm

needs a CRM system. A common mistake made by many firms when trying to acquire a CRM is

making purchasing decisions without considering the objectives and needs of the firm. The

acquisition of CRM should begin with identifying why the firm needs a CRM system, defining the

scope of the CRM and exploring firm’s existing technology. The acquisition of a new technology

requires one to consider their environment before deciding on the best solution that will fit the

firm’s needs (James, 2016).

A successful customer relationship management system is not only based on the features

offered by CRM but also on functionality, the needs of the firm, skill, the number of personnel

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expected to manage the system and amount of money the firm is willing to spend on the system

(James, 2016). To avoid the current problem being experienced by ICS Ltd, the purchasing process

should be done in a systematically. After defining the scope of the CRM project and drafting out

a plan on how the whole process will be undertaken, vendor presentations should be done.

Throughout the acquisition and implementation process, proper documentation should be done

to avoid informal dealings throughout the project life cycle (Chipman, A step-based approach to

the CRM buying process, 2012)

Vendors should be asked to make presentation on their products to take advantage of

the healthy competition between CRM solution vendors. The firm needs to follow a planned

selection sequence. Before presenting the firm’s, CRM needs to the vendors, it is essential to

address the needs of the management and end users of the CRM system. Input from managers

and end users are essential. The firm will have an abundance of choices to select from. Vendor

demonstrations can be done in order to compare functionality capabilities of different CRM

solutions (Chipman, A step-based approach to the CRM buying process, 2012).

After vendor presentations, five vendors should be selected for further evaluation. A

vendor ranking and selection criteria should be developed. This system should be focused on

functionalities, the time to implement a given CRM solution, annual costs to be incurred, and

mobility of the CRM solution scalability, insights capabilities, customizability, accessibility,

customer support, integration capabilities of the CRM solution and other automation capabilities

of the system. It is important to have clear selection criteria so as to increase the chances of

making the right decision. A score should be provided on each CRM solution after an in-depth

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evaluation. Once this is done a comparison should be done and the CRM solution with the highest

score should be chosen (Chipman, A step-based approach to the CRM buying process, 2012).

Once a CRM solution has been chosen a firm should adopt a CRM strategy that would

lead to successful implementation of the software. Implementation should be done in small

phases. Before implementing the chosen CRM solution, the licencing and contracting terms

should be explained to the vendor. All CRM projects should be supported by signed contracts and

licencing terms to avoid unnecessary costs that may be incurred due to lack of supporting

documents. A complete team with a representative from every department should be selected

to oversee the implementation process. Implementation of the CRM system should not be solely

focused on the IT department. To make this team productive, a key member of the team who is

highly skilled and experienced in CRM implementation should be externally sourced.

A good communication strategy should also be developed to keep all participants

informed. The project should be marketed internally to make sure every individual within the

organization understand the project and wholly accept changes that may be brought by the new

CRM system. The CRM solution should be customized to fit the firm’s needs before being

implemented. Then, good plan for a phased rollout should be drafted. Such a plan will increase

the chances of seamlessly shifting from the current system to the new CRM system implemented

by the firm.

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References

Barrington, R. (n.d.). Making it Work: Customer Relationship Management Implementation

Issues Before, During and After Launch. Vendor Guru.

Boardman, R. (2008, December). Top 10 CRM implementation pitfalls. Retrieved November 15,

2017, from SearchCRM: http://searchcrm.techtarget.com/answer/top-10-CRM-

implementation-pitfalls

Chellamuthu, P. (2014, September 18). Data migration challenges and solution for successful

implementation. Retrieved November 15, 2017, from Linkedin:

https://www.linkedin.com/pulse/20140918151302-65816706-data-migration-

challenges-and-solution-for-successful-implementation

Chen, I. J., & Popovich , K. (2003). Understanding customer relationship management (CRM)

People, process and technology. Business Process Management Journal; vol. 9, No. 5,

672-688.

Chipman, S. (2010, February 07). CRM Data Migration Strategies. Retrieved November 15,

2017, from CRM Switch: https://www.crmswitch.com/data-migration/strategy-data-

migration-crm/

Chipman, S. (2012, May 23). A step-based approach to the CRM buying process. Retrieved

November 15, 2017, from CRM Switch: https://www.crmswitch.com/buying-crm/step-

based-approach-crm-buying-process/

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DQ Global. (2014, June 12). Common CRM Data Problems. Retrieved November 15, 2017, from

DQ Global: https://www.dqglobal.com/2014/06/12/common-crm-data-problems/

James, M. (2016, March). When you buy CRM software if's a business decision. Retrieved

November 15, 2017, from Searc Sales Force:

http://searchsalesforce.techtarget.com/tip/when-you-buy-CRM-software-its-a-

business-decision

Master Soft. (2017, August 01). CRM data duplication: Understanding and Tackling the issu.

Retrieved November 15, 2017, from Master Soft:

https://www.mastersoftgroup.com/blog/crm-data-duplication-understanding-tackling-

issues/

Mishra, D., & Mishra , A. (2009). Customer Relationship Management: Implementation Process

Perspective. Acta Polytechnica Hungarica; Vol. 6, No. 4, 83-89.

Rouse, M. (2014, November ). Customer Relationship Management (CRM). Retrieved November

15, 2017, from SearchCRM: http://searchcrm.techtarget.com/definition/CRM

Target Marketing. (2013, September 04). 6 Common Problems with CRM Data. Retrieved

November 15, 2017, from Target Marketing:

http://www.targetmarketingmag.com/article/6-common-problems-with-crm-data/all/

Wagner-Marsh, F. (n.d.). Customer relationship management. Retrieved November 15, 2017,

from Reference for Business:

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http://www.referenceforbusiness.com/management/comp-De/Customer-Relationship-

Management.html

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