Roles and Implications of Technology in Building Relationships 2. 1Technology Facilities CRM It is important to understand that Customer Relationship Management is about relations between people. People, not companies, do business. Business existed long before computers and the technology boom in the last decade. Thus CRM was not invented with the invention of computers. The good practices of relating with your customer did not become obsolete with the introduction of technology, though it has changed the way we make, manage and keep customer relationships.
We use the same practices, but we take advantage of the possibilities that technology gives us. Even though technology makes some processes easier and saves time it might not always have a positive effect on the consumer. For example, it is a different experience for a buyer wishing to purchase a product over the Internet when he is met with a human voice. Technology now makes it possible to purchase products this manner.
However customer buying a product over the Internet will not be able to ask for assistance whereas in the old way in conducting business a salesman is always near to offer help and persuade the consumer to purchase the product. The Internet might save time and the hassle of driving to a store but does have certain disadvantages. Therefore technology only facilitates CRM. In today’s fast business lane, profits are made quick, and young managers tend to buy a CRM software solution. However CRM should already be in place and functioning before starting IT implementation.
CRM software and technology itself is only a tool for procedures already in place. 2. 2Contribution of Technology in Building Relationships A common belief today is that sustainable competitive advantages are in some way correlated with customer focused behaviour and CRM technology. In essence, CRM is about retaining customers and customer lifetime value, maximizing new business opportunities and sustaining profitability. Technology helps CRM in the following ways: ·The aggregation of data to create a single, accessible source. The analysis and presentation of that data as usable information by individuals doing strategic planning or executing sales or marketing initiatives. ·Provides tools and information to front-line personnel or systems that are interacting with customers. For example technology can be used to build relationships by allowing businesses to create databases of their customers. These databases will be able to provide information on each customer thus making it easier to manage them and keep them satisfied it also allows companies to become more personally involved with a specific target audience thus reaching organizational goals.
The Internet offers an easy way of advertising to potential customers and e-mail offers and inexpensive way of keeping in contact with customers. Thus maintaining strong relationships. Technology makes it easier to communicate with people and communication is the key in maintaining a relationship. In conclusion technology helps maintain relationships by allowing companies to keep track and manage all their customers as well as it allows the company and customers to interact easily.