A good CRM program enables customers to easily access the information they need at any time and any place. The system has to be equipped by information technology network to support development, maintenance and optimization of mutually valuable customer relationships.
Conducting CRM should be based on the platform strengthened by,
1. Implementation of Knowledge Management
2. Understanding Customer Life Cycle
3. Using Information Technology Network and an Appropriate Software
4. Being aware of the New Paradigm of the Second Curve Business Life Cycle
The such platform enables company to establish a sensitivity real-times changes to the way they interact with customers based on the CLC -knowledge and awareness of the second curve’s new paradigm. The availability of an integrated customer database, and an analytical expertise is required to get the advantages of IT network implementation and the effectiveness of appropriate software used. It has to be clearly defined the operational purpose software such as call centre operation, marketing response automation and an analytical purpose software for deriving customer data for marketing plan.
The efficiency of CRM application should be taken into account, among others infotech network investments, the possibility alternative of virtual network will lower the cost capital of it, selective database development, and suitable software. By the scale of economies the cost of hardware and software has a decrease tendency, but the cost of infotech professionals is increasing because of a talent shortage. Here we are advised to rent them on a project based, instead of as a permanent employee. The policy on choosing rent or buy of software used might be a substantive contribution in this cost efficiency measurement including the ability to choose which one of these software is more efficient to rent or purchase it, for instance order processing, pipeline analysis, and call-centre automation software.
The efficiency of whole business process relies on simplification or re arrange activity based costing where the major opportunity for cost reduction is in the area of process and delivery. The CRM implementation will be pushed forward by the innovation of product processing. By taking into account the unavoidable risk factor of the modification product processing, it is preferable to move from product competitiveness to customer relationship competitiveness. Any effort to make significant profits will not be able to exceed the corridor of cost based price and market price, so it is almost impossible not to set up a transparent price. Implementing CRM has an obvious advantage as the quality of product service becomes the main platform of imbedded company’s culture.
To calculate the additional profit associated with a CRM implementation require the covering of all other cost variables in order to get the result of return on investment.
In bigger-scale implementations the task of measuring return must be accompanied by a simplification of product processing procedure as pre-action by applying activity based costing program.
A series number of outcomes from CRM implementations such as improved customer service, better anticipated new demand will be more representative
if be combined by financial indicator as return on investment, and return on asset.
The concept of knowledge management is based on the necessity for synchronizing the capabilities of advanced information technologies and human tacit knowledge, creativity, innovation and its dissemination through out the network to the whole organization.
It is necessary to develop better understanding of Knowledge Management as enabler of information strategy for the effectiveness of customer relationship management. The information-processing perspective of Knowledge Management becomes more relevant to this marketing policy. A number of examples from the world of net businesses shows the shifting from the conventional world of business to the new world of e-commerce as the awareness of the emergence new paradigm of the second curve business life cycle. More understanding of the relevance of knowledge and Knowledge Management is expected to contribute to CRM as part of an integrated effective e-commerce strategies that result in increased business performance.