Gartner Group, a Research Firm for Information Technology Users, Reports

question 48

Essay

Gartner Group, a research firm for information technology users, reports that 55 percent of all customer relationship management software projects fail to produce results. Worse yet, one in every five companies report that their CRM initiatives not only had failed to deliver profitable growth but also had damaged long-standing customer relationships. Experts suggest that these problems tend to occur when executives mistake CRM technology for a customer strategy. First, define customer relationship management (the cross-functional process) and describe how CRM technology (the software) allows a firm to provide customized treatment of key customers. Second, describe the central components of a customer relationship management strategy and the way in which CRM technology can support each strategy component.

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Definitions:

Coalition

A specific arrangement of parties working together to combine their power.

Corporate Culture

The set of beliefs, values, norms, and practices that defines the way a company operates and how its employees interact.

Punishment System

A set of rules and procedures designed to discipline individuals or groups for violating norms or policies.

Ingratiation

A psychological technique used by individuals to make themselves more likable and favorable to others, often through flattery or other means.