CRM - How it can help medium size companies and are there any downsides to its implementation (PDF)

Master's Thesis from the year 2010 in the subject Business economics - Offline Marketing and Online Marketing, grade: 1,7, University of Bedfordshire, course: Applied Management Project / Master Thesis, language: English, abstract: III Executive Summary
In the past, CRM (Customer Relationship Management) was seen more clearly as a
strategic tool in conjunction with technological progress. Now more and more
companies use CRM to earn benefits. It helps to understand, manage and develop
customer-specific analyses in order to increase customer loyalty and customer
satisfaction. The fast-growing market of the different CRM systems is becoming more
and more obscure but also more and more interesting for medium sized enterprises.
This implementation promises to survive in the market and achieve a competitive
advantage.
This thesis therefore aims to create a guideline to set aside to a number of clients
that helps the clients of medium sized companies to get a sufficient overview of the
whole situation around the subject of CRM. Relevant information about the variety of
systems, conditions and requirements of using CRM within an enterprise will be
provided. In addition, the positive and negative aspects of CRM will be mentioned in
this report.
Based on the findings this report will clarify the question which economic strategy is
correct or preferred for medium sized companies. Many providers offer companies to
rent their CRM system during the first steps of implementation rather than to buy it.
This offers the possibility to optimise one's own corporate strategy with regard to the
procedure which will change a corporate strategy by implementation of a CRM
system.
The prerequisites of successful implementation consist of many different changes
within the company. These changes are the key factors to a successful and profitable
decision about the failure or success of the strategy in the market.
To round off the issue of the topic, customer satisfaction, customer loyalty and
changes in consumer behaviour will be analysed. To benefit from a customer it is
particularly important to understand this first. It is advantageous to monitor and track
changes in the consumer behaviour and to be prepared at the next step or be one
step ahead.
Finally, the downsides, risks, benefits and opportunities of the CRM implementation
will be analysed and evaluated at the end. Also, a recommendation is offered for the
approach of medium sized companies within the implementation-stage.