THE IMPACT OF

CUSTOMER
RELATIONSHIP
MANAGEMENT
ON BUSINESS

Submitted to: Submitted by:

Mr.CHANDERSHAKHER DOGRA GAGANDEEP SACHDEVA
MBA(R1002)
 Roll No.-B41

INTRODUCTION:

CRM stands for Customer Relationship Management. It is a process or methodology used to learn
more about customers' needs and behaviors in order to develop stronger relationships with them. There
are many technological components to CRM, but thinking about CRM in primarily technological terms
is a mistake. The more useful way to think about CRM is as a process that will help bring together lots
of pieces of information about customers, sales, marketing effectiveness, responsiveness and market
trends. It actually helps an enterprise to enable its marketing departments to identify and target their best
customers, manage marketing campaigns and generate quality leads for the sales team. Not only helps to
hold the customers for long period but also improve telesales, account, and sales management by
optimizing information shared by multiple employees, and streamlining existing processes. No doubt we
can talk about the success of the business through CRM which is the modern approach needs to be
focused for he cut throat competition in the industry. Providing employees with the information and
processes necessary to know their customers understand and identify customer needs and effectively
build relationships between the company, its customer base, and distribution partners.

Many organizations turn to CRM software to help them manage their

customer relationships. CRM technology is offered on-premise, on-demand or through Software as a
Service CRM, depending on the vendor. Recently, mobile CRM and the open source CRM software
model have also become more popular. It involves using technology to organize, automate, and
synchronize business processes—principally sales activities, but also those for marketing, customer
service, and technical support. The overall goals are to find, attract, and win new clients, nurture and
retain those the company already has, entice former clients back into the fold, and reduce the costs of
marketing and client service. Customer relationship management describes a company-wide business
strategy including customer-interface departments as well as other departments.

Customer relationship management (CRM) is all about managing the relationships you have with your
customers—including potential customers. CRM combines business processes, people, and technology
to achieve this single goal: getting and keeping satisfied customers. It's an overall strategy to help you
learn more about your customers and their behavior so you can develop stronger, lasting relationships
that will benefit both you and your customers. It’s very hard to run a successful business without a
strong focus on CRM. After all, it’s all about the customer.

Successful CRM involves many different areas of your company, starting with sales, of course. But also
various other customer-facing areas, like marketing and customer service. Salesforce.com offers a
technology solution for all those areas… and more. With Sales force CRM software as a service and our
Force.com cloud computing platform, you can mind your customers and your budget at the same time
(very important in today’s economy). Get up and running in 30 days with the world's most proven and
loved CRM solution.
OBJECTIVES:

An objective gives the purpose for research to a researcher and sets the boundaries for the research. The
following are the objectives to conduct the research on impact of customer relationship management on
business:

1. TO UNDERSTAND THE IMPORTANCE OF CRM

2. DOES CUSTOMER LOYALTY DEPEND ON CRM OF THE BUSINESS UNIT?
3. TO UNDERSTAND THE POSITIVE EFFECTS OF CRM ON BUSINESS & NEGATIVE
EFFECTS IN CASE OF IT’S NON EXISTENCE.

Literature reviews:
In the cut throat competition today maintaining relationships with the customers became an utmost
requirement for the business units to survive in the market and thus it has became a strategy more
than a methodology to retain their customers and make a customer loyal to the business unit.

D.hartline michael and Ferrell O.C.(1996) To increase customers' perceptions of service quality,
managers must increase employees' self-efficacy and job satisfaction, and reduce employees' role
conflict and ambiguity.

Hallowell roger, (1996) The relationship of customer satisfaction to customer loyalty and customer
loyalty to profitability, using multiple measures of satisfaction, loyalty, and profitability. An estimation
of the effects of increased customer satisfaction on suggests that attainable increases in satisfaction
could dramatically improve profitability.

Hennig-Thurau, horsten ( 1997) Customer satisfaction with a company's products or services is often
seen as the key to a company's success and long-term competitiveness. Customer satisfaction is often
viewed as a central determinant of customer retention.

Cannon Joseph P. (2001) The business practice are directing increased attention to the importance of
creating value in buyer-supplier relationships. One method for creating value is to reduce costs in
commercial exchange.

Ryals Lynette and Knox Simon, (2001) The companies organize themselves as firms switch from
product-based to customer-based structures however a key driver of this change is the advent of
Customer Relationship Management which, underpinned by information systems convergence and the
development of supporting software, promises to significantly improve the implementation of
Relationship Marketing principles.

Katherine N. lemon and tiffany Barnett white (2002) The influence of customer future-focused
considerations, over and above the effects of satisfaction, on the customer's decision to discontinue
a service relationship. Understanding and managing these future-focused considerations is critical to
successful dynamic customer relationship management.

Steven & Hunter, (2002) The concept of e-service which is a critical strategic marketing. e-CRM
marketers must first identify means of increasing the overall level of customer satisfaction within their
industry, and then begin to consider moving beyond customer satisfaction toward broader loyalty-based
strategic marketing objectives to support their relationship marketing practices.

Yun & David, (2003) Customer relationship management (CRM) and business-to-business (B2B) is
essential to the success of modern business. The integration of CRM and B2B will benefit all related
parties in business processes, including sales, marketing, customer service, and information support.

Bull Christopher, (2003) CRM is a complex and holistic concept, organized around business processes
and the integration of information technologies. CRM requires effective leadership, sourcing, targeting
and evaluation strategies.

Evert Gammeson, (2004) CRM has a bearing on both business-to-business and business-to-consumer
marketing, and on manufacturing as well as services. To show current efforts to generate knowledge of
return on relationships, with particular emphasis on business-to-business environments.

Werner & Manfred, (2004) The first key outcome is a theoretically sound CRM process measure that
outlines three key stages: initiation, maintenance, and termination. The second key result is that the
implementation of CRM processes has a moderately positive association with both perceptual and
objective company performance.

Ghavami, Alireza, (2005) The impact of CRM on customer focusing onto to identifying, acquiring,
retaining and delighting customers. By enabling organizations to manage and coordinate customer
interactions across multiple channels, departments, lines of business, and geographies. CRM helps
organizations maximize the value of every customer interaction and drive superior corporate
performance.

Robert &Liu, (2005) The role of technology in successful customer relationship management (CRM)
implementation is a perennial subject of concern to marketers. The studies consistently indicate that
technology is a necessary but not sufficient factor in the ultimate success of a CRM system.

Mithas Sunil & Fornell Claes, (2005) The effect of customer relationship management (CRM) on
customer knowledge and customer satisfaction. A CRM application is positively associated with
improved customer knowledge and improved customer satisfaction. Gains in customer knowledge
are enhanced when firms share their customer-related information with their supply chain partners.
Peelen, E. (2005) As CRM lies in each and every business operation believes that CRM is a powerful
tool in both the business to business and business to consumer environments, but it has been both
oversold and underutilized.

Adrian Payne & Pennie Frow (2006) To develop a conceptual framework for customer relationship
management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer
value. Cross-functional, process-oriented approach that positions CRM at a strategic level. Five key
cross-functional CRM processes: a strategy development process, a value creation process, a
multichannel integration process, an information management process, and a performance assessment
process.

Smith Alan (2006) strengthening customer relationships have been moved to the top of the corporate
priority list and cite examples of how the technology can improve CRM strategies.

Zineldin mosad, (2006) The ways to to build a strong competitive position are through customer
relationship management (CRM) and product/service quality. A company has to create customer
relationships that deliver value beyond the provided by the core products. This involves added tangible
and intangible elements to the core products thus creating and enhancing the “product surrounding”.
One necessary expecting result of the creation of value added is customer loyalty.

Lawson & Limayem, 2006 The CRM help in retention of customer and result in customer loyalty
which further help the business to expand.

Buttle, F. (2009.) CRM is nothing more than one to one relationship marketing and disintermediation,
but that is a lot by influencing through continuous relevant communication and developing long term
relationships to improve customer reliability, achievement, preservation and prosperity

Berfenfeldt jens, (2010) CRM is aimed at building strong, long-term relationships that keep customers
coming back repeatedly. It aims to help organizations build individual customer relationships in such a
way that both the firm and the customer get the most out of the exchange, providing both parties with
long term benefits.
IMPORTANCE OF THE STUDY

To know about the customer perception towards CRM & to know that customer loyality
and commitment will effect by CRM. To study the impact of CRM in the current scenario
whether it effects the customer loyalty or not.

RESEARCH METHODOLOGY/ RESEARCH DESIGN :

This is a primary and descriptive study and is intended to be done by using Survey
methods. The survey will be administrated through electronic methods such as email and
internet and also by conducting mall intercept personal interviews.

RESEARCH APPROACH

As this study is intended to identify impact of CRM on success of the business, so using
Likert scale would be appropriate here. Questions asked would be simple mix of
unstructured, dichotomous and scaled questions. Language used will be easily
understandable and average interviewing time will be just 5-7 minutes. The sample
selected for study here is the shop holders in the Viva collage (a mall in jalandher city)
and also in the Ansal Plaza also the customers out there in order to find out their loyalty
views for the relating to relationship managed by the shopkeepers, out of the
population(Whole jalandher city). Total sample size would be around 200 which includes
70 shopkeepers from both the malls and 130 customers.
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 D.hartline michael and Ferrell O.C.(1996) “ To increase customers' perceptions of service

journal of service quality, vol 3 iss: 3, pp.27 – 38.

 Hallowell roger, (1996 ) ‘’relationship of customer satisfaction to customer loyalty’’ journal of

customer satisfaction, vol 6 iss: 6, pp.16-25

 Hennig-Thurau, horsten ( 1997) “ Customer satisfaction is often viewed as a central

determinant of customer retention.” Journal of satisfaction , vol 4 iss: 4 pp. 24-34

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importance of creating value in buyer-supplier relationships”. Advances in Consumer Research,
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relationship management”. Management Research News, 29 (1/2), pp. 41-52.

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services", International Journal of Service Industry Management, Vol. 13 Iss: 5, pp.452 – 474.

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 Bull Christopher, (2003), “CRM requires effective leadership, sourcing, targeting and
evaluation strategies. Journal of Consumer Research, 14 (March), pp. 522-530.

 Evert Gammeson, (2004), “CRM has a bearing on both business-to-business and business-to-
consumer marketing. Indian Management, 43, (4), pp 72-81.

 Werner & Manfred, (2004), “CRM process measure that outlines three key stages: initiation,
maintenance, and termination”. Management Research News, 29 (1/2), pp. 41-52.
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acquiring, retaining and delighting customers”. Handbook of Business Strategy. Volume 26,
Issue 3, , Pages 207-215.

 Robert &Liu, (2005), “ The role of technology in successful customer relationship management
(CRM) implementation is a perennial subject of concern to marketers”. International Journal of
Service Industry Management, Vol. 5 Iss: 5, pp.21 – 38.

 Mithas Sunil & Fornell Claes, (2005) , “The effect of customer relationship management
(CRM) on customer knowledge and customer satisfaction. International Journal of Service
Industry Management, Vol. 13 Iss: 5, pp.452 – 474.

 Peelen, E. (2005), “CRM is a powerful tool in both the business to business and business to
consumer environments”. . Journal of Consumer Research, 14 (March), pp. 522-530.

 Adrian Payne & Pennie Frow (2006), “To develop a conceptual framework for customer
relationship management”. Business Process Management Journal, Vol. 9 Iss: 5, pp.592 – 602.

 Smith alan, (2006) "CRM and customer service: strategic asset or corporate overhead?",
Handbook of Business Strategy, Vol. 7 Iss: 1, pp.87 – 93.

 Zineldin mosad, (2006)"The royalty of loyalty: CRM, quality and retention", Journal of
Consumer Marketing, Vol. 23 Iss: 7, pp.430 – 437.

 Lawson & Limayem, (2006), “A company has to create customer relationships that deliver
value beyond the provided by the core products”. Journal of satisfaction , vol 4 iss: 4 pp. 24-34

 Buttle, F. (2009.), “CRM is nothing more than one to one relationship marketing and
disintermediation”. Journal of Consumer Research, 14 (March), pp. 522-530..

 Berfenfeldt jens, (2010) CRM is aimed at building strong, long-term relationships that keep
customers coming back repeatedly. International Journal of Service Industry Management, Vol.
5 Iss: 5, pp.21 – 38.

 Kaj Storbacka, Tore Strandvik, Christian Grönroos, (1994) "Managing Customer

Relationships for Profit: The Dynamics of Relationship Quality", International Journal of Service
Industry Management, Vol. 5 Iss: 5, pp.21 – 38
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implementation", Business Process Management Journal, Vol. 9 Iss: 5, pp.592 – 602.

 http://www.emeraldinsight.com/journals.htm?articleid=862838&show=abstract.
 http://www.emeraldinsight.com/journals.htm?articleid=1580841&show=abstract.
 http://www.sciencedirect.com/science
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6793%28199712%2914:8%3C737::AID-MAR2%3E3.0.CO;2-F/abstract