Essay on Customer Relationship Management

Published: 2021/11/08
Number of words: 2455

Overview of CRM

Customer relationship management is a business model given backup by the information technology, which is generated to enhance the nature of human interactions amid customers as well as businesses. It is an incessant plus strategic initiative which demands a dynamic technique for taking care of customer relationships. As a result, CRM is regarded as the provision of customer care services as a unique product containing reward while producing a happy set of customers via the retention (Lubis et al., 2020, p.84). The model is made up of numerous methods plus technological orientations by organizations in managing customer relationships. The model further proposes that information about existing and potential customers be properly analyzed in order to provide relevant information for business decision-making. The use of automated CRM processes is used to generate automated personalized marketing based on data stored in the organization’s database.

Most businesses have remained committed to the concept of long-term CRM as a means of recruiting and retaining valuable consumers. The conventional forms of customer connection and marketing tactics, which stressed the creation of commercials and other promotional strategies to appeal to the target market, have continued to evolve into the current forms. Today, the emphasis is on the capabilities of information technology (IT) to create value for businesses and customers (Valmohammadi,2017). With the advent of high-tech technology that has consumed the market and the business environment, modern CRM has seen tremendous growth. The demand for a more advanced CRM has resulted in eCRM, which has evolved from traditional CRM. As a result, most businesses have indicated growth in their businesses in several ways and this section is going to concentrate on discussing the significance customer relationship management to businesses.

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Contributions of CRM to Business Growth

Relationship marketing and IT infrastructure literature propose that the adoption of CRM technology correlates positively with the conception, development, as well as retention of customer relationships founded on an in-depth review of market studies plus orientation (Talon-Ballestero et al., 2018, p.187). CRM has provided numerous benefits to businesses that have implemented its philosophies since its inception.

Enhanced Services

Most businesses have steadfastly embraced strategic CRM in order to reap the benefits. CRM has a wide range of applications in the corporate world. Through these applications, CRM has assumed its role of promoting the values of businesses strategies of higher sales volumes and customer share. Customers now expect improved, personalized service and immediacy, thanks to the rapid development of the Internet, e-commerce, and self-service customer support (Abu Amuna et al., 2017). As a result, marketing professionals are turning to technology to capture and use customer information in order to better meet customer demands.

Better Customer Retention

Traditional ways of attracting clients and retaining them as customers have continued to be inefficient. CRM promises a cheap and faster approach of recognizing consumer demands and reacting to bring them on board with the goal of solving their unmet wants. CRM, on the other hand, acts as a user-friendly platform for recording customer criticisms.

Proper Identification and Segmentation of Customers

CRM systems assist businesses in properly identifying and segmenting customers prior to incorporating them into the business’s customer stratum (Zebedayo,2020). The system can be defining in providing a business with a once-in-a-lifetime opportunity to secure high-end customers as well as middle-end customers who matter to business performance through increased profitability.

Better Anticipation of Needs

Businesses have used CRM principles to provide strategic customer expectations with the goal of identifying, exploring, and using CRM to control the value proposition with the goal of improving customer satisfaction. CRM, according to numerous studies, has served to justify the role of information systems in developing approaches that benefit both customers and organizations.

Customer Relationships as a Business Priority

CRM systems continue to be the most important component in assisting organizations in facilitating customer complaints and resolutions. CRM provides a better option for designing mechanisms for proper decision-making for resolving customer problems within the desired time to ensure that firms do their best in terms of offering impartial and differentiated services to their customers. As a result, CRM assists firms in achieving strategic positions that adhere to the Just-in-Time (JIT) principles, in which customer concerns are coordinated and resolved rapidly (Soltani et al., 2018, p.246).

Challenges in implementing customer relationship management to businesses

Despite the fact that CRM systems have had a considerable impact on corporate performance, their deployment continues to confront significant obstacles. These obstacles include both internal and external pressures that might cause a company’s CRM implementation to become skewed, making it difficult to reap the benefits of CRM.

Inconsistency in CRM Procedures

According to studies, firms that perform exceptionally poorly have implemented strategic CRM within their operations. Furthermore, most researchers believe that the inability of CRM to produce the intended value to the business is due to inconsistency in the process of delivering the projections by businesses that have failed (Rahimi & Kozak,2017, p.51). Poor or lack of effective customer orientation, bad IT practices, people management, and the selection of suitable technologies that adapt to the business’s demands are all variables that contribute to these results.


Cost is one of the most significant challenges that businesses face when implementing a CRM solution. Yes, if done hastily and without thorough forethought, it could end up being a pricey affair. It is best to decide why your company requires a CRM at this point. This should provide a clear picture of the type of CRM system and implementation techniques required, ultimately assisting in the establishment of a budget for the same. So merely copying your competitor’s CRM techniques is like to taking a shot in the dark that could end in tragedy. As a result, it’s always a good idea to talk to all of the shortlisted CRM providers about total cost of ownership, IT resources, hardware or software, and so on (Abu Amuna et al., 2017).

Lack of Adequate Training

On the other side, the implementation of CRM systems has resulted in a group of clients who are dubious of the system’s principles and believe that CRM will not be able to assist them in the future. In the past, when compared to the CRM era, extensive information about customers was limited. The use of technology to maintain customer interactions continues to elicit a range of responses regarding client data protection. When technology is used incorrectly, it has the potential to destroy objectivity. As a result, firms employing CRM must be wary of the security risks.

Ways to Overcome the Challenges

Ensure the CRM System is Easy to Understand and Use

CRM software is designed to make users’ lives easier. You should streamline the procedure if your users are having trouble managing or discovering their data in the CRM system. Yes, process streamlining must be considered from the beginning of the system configuration process. Many users are confused or even irritated by interfaces that provide no useful information, such as unwanted fields and/or extensive navigation. As users advance, your system administrator can gradually introduce new items into the system.

Clearly Defined Goals

More than half of CRM projects fail owing to a lack of clearly stated objectives. There is a brief plan spelled out before buying a CRM system that the firm intends to grow and expand in the future and thus needs a CRM software for it, but a clearly defined aim gives considerably more information than that (Badwan et al., 2017). How many transactions will occur, how many security levels will be required, and how will the gap between what your company does and what the software provides be managed? This will assist the company in planning adequately in terms of finances required to ensure the process of transitioning or running the CRM systems works smoothly.

Training your users

Make user training sessions a top priority. Spending time on user training is not a waste of time; rather, it saves time and effort for both users and management personnel who will be reviewing their work and performance. Create training based on the various processes defined in the CRM software. A sales person, for example, is more interested in learning about the sales opportunity module than the service module. Marketing Campaigns, Groups of Companies, Bulk Emails, as well as Individuals are all things that a marketing executive is interested in.

Lessons Learnt by Adopting Practical Steps to overcome challenges

  • When coming up with a new development in an organization, begin by involve users from the word go.

The only thing that remains constant is change. Unfortunately, humans are prone to being resistant to change. Employees prefer to stick to their daily routines rather than change them in order to increase productivity. For example, in a number of organizations, people often reject new software when an organization decides to implement it, claiming that they are not comfortable with it. However, in order to avoid the “it’s my way or the highway” mentality, management must persuade and train them effectively on the new system that is well suited to their current comfort zone in order to achieve more growth and stability. Fear of not understanding the system is highly frightening, thus painting a clear picture of the system and assisting them in comprehending it will remove any uncertainties or doubts they may have (Lubis et al., 2020, p.84). For instance, work on changing the employees it’s my way or the highway mentality and train them effectively on the new system that is well suited to their current comfort zone in order to achieve more growth and stability. Also, make it clear to your them how the CRM software will benefit them, and automate a few of their chores. Taking regular feedback from users on the system’s user-friendliness, interface, navigation, and so on will also lead to successful implementation.

  • Define goals and KPIs that led to the implementation of the new model/theory.

Customer Relationship Management (CRM) systems are still a mystery to many new businesses, large and small (Kumar & Reinartz,2018). New businesses may be unaware of the significance of CRM integration, which enables businesses to make the most of their data and investment. To users and employees, it is still a mystery that is trying to suppress their norm. CRM implementation requires clear goals as well as objectives. Companies will only be successful with a CRM strategy if they have a clear vision of what they want to accomplish. As a result, setting goals plus KPIs to assess them is critical. You’ll be able to track your progress, client happiness, and continual development once these are in place.

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  • Engage the Right CRM Solution Provider and Plan Integration in Advance

The key to a successful CRM implementation is enlisting the right CRM solution provider or partner. Choose a partner who can assist with both implementation and pre-implementation strategy. Furthermore, it is critical that your partner lays out all of the implementation risks before you sign on the dotted line. On the other hand, integrating CRM with other business administration solutions such as ERP, payroll, and so on is at the top of most companies’ wish lists when it comes to CRM (Talon-Ballestero et al., 2018, p.187). However, to avoid CRM implementation overkill and information overload for your employees, it’s a good idea to consider any integration requirements ahead of time. For instance, get rid of time-consuming workflows and let technology help your company thrive. Choose a powerful CRM to get the most out of your investment. Integrate your sales and accounting applications to maximize productivity and profitability


In conclusion, A CRM system is a valuable asset for any business, large or small. It is critical to use the right software that allows you to strengthen your customer relationships. Additionally, to have a good implementation, we must plan ahead of time to ensure a seamless and successful transition. This is because, CRM adoption has been a persistent issue for businesses for many years. This is why it is important to identify a person within your organization who can lead the adoption project. A CRM champion’s responsibilities primarily include developing standard procedures and ensuring that users use the system correctly while adhering to data quality procedures. As a result, businesses looking forward to implementing CRM to effect their operations need to include their employees from the start and offer mentorship and training over the same. Additionally, each new model brought into an organization should be accompanied with clear goals and objectives so that its easier for the users to take lead on what should be done and how. Thirdly, ensure the model is accompanied by a CRM solution provider whose work is not only to avail the software, but also be present throughout its operations. For instance, he/she should stretch their roles from implementation to post implementation assisting plus inspiring the organization staff to make use of the new software.


Abu Amuna, Y. M., Al Shobaki, M. J., Abu-Naser, S. S., & Badwan, J. J. (2017). Understanding Critical Variables for Customer Relationship Management in Higher Education Institution from Employees Perspective.

Badwan, J. J., Al Shobaki, M. J., Abu-Naser, S. S., & Abu Amuna, Y. M. (2017). Adopting technology for customer relationship management in higher educational institutions.

Kumar, V., & Reinartz, W. (2018). Customer relationship management. Springer-Verlag GmbH Germany, part of Springer Nature 2006, 2012, 2018.

Lubis, A., Dalimunthe, R., Absah, Y., & Fawzeea, B. K. (2020). The Influence of Customer Relationship Management (CRM) Indicators on Customer Loyalty of Sharia Based Banking System. Lubis, A, 84-92.

Rahimi, R., & Kozak, M. (2017). Impact of customer relationship management on customer satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism Marketing34(1), 40-51.

Soltani, Z., Zareie, B., Milani, F. S., & Navimipour, N. J. (2018). The impact of the customer relationship management on the organization performance. The Journal of High Technology Management Research29(2), 237-246.

Talón-Ballestero, P., González-Serrano, L., Soguero-Ruiz, C., Munoz-Romero, S., & Rojo-Álvarez, J. L. (2018). Using big data from customer relationship management information systems to determine the client profile in the hotel sector. Tourism Management68, 187-197.

Valmohammadi, C. (2017). Customer relationship management: Innovation and performance. International Journal of Innovation Science.

Zebedayo, S. (2020). Assessment of the Effects of Customer Relationship Management in Customer Satisfaction”, A case of MasasiNachingwea Water Supply and sanitation Authority, Mtwara (Doctoral dissertation, Mzumbe University).

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