Critical analysis on potential benefit of using CRM in organization Essay

Critical analysis on potential benefit of using CRM in organization - Essay Example CRM or customer relationship management, therefore, has become a critical factor in the business strategy of the organizations. Customer relationship management is a people-centric business strategy that integrates technology and various business processes around the customers. Analysis and identification of the changing trends of the customer requirements have become important ingredients to gain leverage against one’s business rivals. While the market strategy should be totally focused on the needs and requirements of the people and make continuous efforts to update its products line with that of the changing public demands. Understanding of consumer psychology, therefore, plays a vital role in the development of marketing strategy and planning. The behavioral pattern of the people, in the decision making process of buying products and services, help provide important clues for preparing appropriate advertising strategies and campaigns so that maximum mileage could be garnered for the products. The need for effective CRM strategy has therefore, become essential in the fast transforming socio-economi cal paradigms, so that they are able to meet the challenges of the external factors to maintain as well as increase their existing customer base. The purpose of the study is to gauge the impact of the CRM in the overall business strategy and business decision outcome. Emerging markets are crucial in the era of globalization and can be defined as the new area with high income and where the demand for the product can be created with relative success. According to Nargundkar and Srivastava (2002), knowledge about customer and their required is considered to be critical for the long term success of a business (Nargundkar and Srivastava, 2002). But the studies have shown that only small percentage of business have detailed