What are the impacts of technology on customer relationship management?

Technology can also help companies streamline operations, reduce staff and processes and reduce internal costs, which can then have an impact on the consumer in the form of lower prices. Since many consumers actively seek value pricing, this strategy serves as an effective way to build customer relationships. Technology, and especially the technology that enables the Internet, has had enormous repercussions for CRM (customer relationship management). In many cases, technology has helped streamline many CRM processes and reduce the costs of CRM initiatives.

The next section examines the impact of CRMs on retail strategy and begins with a brief summary of the main CRM issues that prevent CRM from achieving its potential capabilities in practice. . Essentially, the problems cited in the literature fall under the central theme of strategic alignment, a notion highlighted in Henderson and Venkatramans (199): Strategic Alignment Model and Turbans, et al. The model advocates that, for IT change to succeed, technology must be aligned with the company as a whole, so that organizational strategy, infrastructure, existing technology, individual functions, training programs, management and culture of the organization function as synonyms for each other (Scott-Morton, 199).

The misalignment between these areas prevents the CRM from fully exploiting its potential capabilities. For example, if the structure of a retail organization restricts CRM access only to marketing and senior management, crucial information is unlikely to reach middle managers and operational-level employees (those who interact with customers on a daily basis) who need it most. On the contrary, if the CRM system is not complemented by a hiring and training policy designed to gain and develop the core competencies needed to use CRM technology effectively, it will most likely fail. Therefore, a strategically aligned approach to information strategy (see the figure in the appendix), which ensures that the information systems strategy, information management strategy, information technology strategy and information resource strategy are connected together, and the organization's overall strategy is a fundamental success factor in effectively integrating CRM throughout the organization (Earl, 2000; Van Bentum, 2001).

The following sections now focus on ensuring alignment within other areas of the organization. Different aspects of organizational culture impact the use of CRM in a positive and negative way in numerous ways. Van Bentum, (200) The analysis of organizational culture distinguishes between several variants of culture. Of these more “mercenary” types of culture (characterized by strong internal competition and intense internal and external rivalry), they often lend themselves to a communication framework that does not conform to the knowledge management, knowledge retention and exchange capabilities offered by CRM.

This negatively affects the use of CRM, leading to reluctance on the part of the individual to use a system that transfers their basic knowledge to an internal “rival”. These organizational cultures restrict the ability to share knowledge of CRMs and discourage their use by workers (Van Bentum, 200). Subcultures that operate within departments or functions of the organization are also considered to negatively hinder the use of CRM and often show resistance and unwillingness to change and adapt to CRM integration (Leverick, et al. By illustrating a more positive impact that culture can have on the use of CRM, Van Bentum (200) advocates a “community” culture based on openness, innovation and continuous learning.

In this sense, culture has a positive impact on CRM, in the sense that it is adopted by people in the organization with a clear customer orientation, who, in turn, seek to use their capabilities to the maximum in their daily activities. It is this type of culture that should be adopted by organizations in the retail sector that currently operate a “mercenary” culture. Listen to the world's most downloaded B2B sales podcast For the next 10 to 25 years, this technology will continue to make great advances and will be able to do even more than what humans are doing today. It will be smart for customer-oriented teams to keep up to date with bots' progress and stay ahead of the curve to offer ever better experiences at an increasingly lower cost.

Imagine a world where smart contracts allow customer success managers (CSMs) to spend less time discussing overpayments and searching for money, and more time focusing on delivering value. Therefore, although the exchange of currency from USD to BTC is not likely to become commonplace or have a major impact on the sector, blockchain technology could radically change the image of commerce in the next 25 years, and CSMs, as parties involved in trading, could change along with it. Social media has allowed consumers to instantly criticize brands in a public forum. A bad customer experience can be recorded on video and then uploaded to the Internet for millions of people to watch.

Since 83% of consumers are likely to trust the opinions of their peers, this puts pressure on customer service teams to come up with a coherent and effective response plan. If we think about the framework of incoming services we are creating, customer service is about interacting with customers in a reactive way, customer service is about guiding them with new suggestions and added value, and customer success is about helping customers grow and can provide infinite additional value for both the customer and their own company. In this context, VRM describes an emerging and progressive school of thought, technology, tools and services that help customers manage relationships with suppliers. It would be extremely frustrating for the customer to have to explain all previous relationships with the organization in every communication, and it can be extremely frustrating for an organization not to know who has spoken to a customer before and what has been discussed before.

Supplier Relationship Management (VRM), the emerging school of thought that incorporates the tools, technology and services that make it easier for customers to manage supplier relationships. CEOs, sales managers, product development managers and logistics managers were now able to collaborate more seamlessly based on customer preferences and buying patterns, delivery schedules, market feedback, and other key data, which in turn were based on information entered by various departments into the CRM infrastructure. The industry of customer success and the progress of companies in search of value for customers are too fast and effective for this not to happen. Perhaps one of the first customer service developments to come from the Internet is email customer service.

For the next five years, great customer success will become a fundamental competitive advantage for companies, just as excellent customer service is today. The data is then stored and structured in a way that allows the user (using CRM tools) to extract patterns and relationships on important trends, such as information on groups of individual customer profiles and their buying habits, average spending, preference for offers, etc. In general, when bots and AI become a core part of all customer-facing teams, leaders will be able to reassign customer service representatives to the customer satisfaction organization, as there will be less need to answer questions repetitively and there will be a greater need to help customers grow and derive value from products and services they have already purchased. CRM or customer relationship management has come a long way since companies began entering customer data into logbooks or conducting analog customer surveys and focus groups in the past century (history of CRM software).

As IT applications were being developed, contact management software was introduced in the 1980s that promised to organize various personal and transactional customer data into a single program. The adoption of service technology helps companies manage the growing demand for excellent customer service. .

Rochelle Paker
Rochelle Paker

Subtly charming tv specialist. Freelance coffee fanatic. Hipster-friendly travel evangelist. Typical social media practitioner. Total gamer.

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