Department of Information Science

Permanent URI for this community

https://scholar.sun.ac.za/handle/10019.1/51

Browse

Browsing Department of Information Science by Author "Berhane Ogbamichael, Hermon"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    The alignment of customer relationship management (CRM) strategies with overall organizational forces and strategies
    (Stellenbosch : Stellenbosch University, 2005-03) Berhane Ogbamichael, Hermon; Botha, Daniel F.; Stellenbosch University. Faculty of Arts & Social Sciences. Dept. of Information Science.
    ENGLISH ABSTRACT: Customer Relationship Management (CRM) systems are increasingly becoming strategic business imperatives to organizations. This thesis states that many companies do fail to get the intended returns from CRM infrastructures simply because they see CRM as merely technological solutions to attracting and retaining customers while failing to see it as a business strategy and integrated into the business model or concept. In the first chapter, the review of literature about CRM, the aims, specific objectives, and methodology used to finalize this paper, problems and challenges surrounding CRM systems are discussed. The second chapter consists of the definition of CRM systems from various multi-disciplinary perspectives as taken from different authors. Besides, the nature, potential benefits and costs to both customers and organizations, and the different types of CRM programs are discussed in detail. In chapter three, the need to integrate CRM strategies into organizational corporate strategy and competitive strategies of various functions of an organization are discussed. Besides, the customer segmentation strategies and market segmentation strategies are explained. In chapter four, the relationships between CRM strategies and the various organizational forces such as organizational culture, structure, business processes, and measuring process re-engineering are discussed. In chapter five, the alignment of support technologies with CRM strategies is discussed in detail. The sections in the chapter include the role of ICTs in CRM systems, the use of Customer Knowledge Management (CKM) in CRM strategies, Customer data analysis, the role of data marts in CRM projects, computer system architecture and data storage management, data sources for CRM purposes, the role of database management systems in CRM systems, the role of customer contact points in CRM systems, database structures for CRM infrastructure, and the use of data mining for data analysis and information delivery. In Chapter six, the need to establish value-adding processes and the creation of value in CRM systems to both customers and organizations are mentioned as the main requirements in CRM strategies. Such sub-topics in this chapter include the customer value proposition, determination of acquisition and retention strategies and customer net value, customer service excellence, the relationship between value-adding services and personalized treatment of customers, and loyalty programs. In Chapter seven, the reasons for customer defection and the mechanisms to prevent the defection possibilities are discussed. Then, the thesis is summarized and concluded.