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Customer Relationship Management Quality

Introduction

Quality is always related to the organizational strategic plans and objectives. Companies do the analysis of market improvement plan by focusing on customers. They develop some plans and strategies towards customer perception in order to attract them towards there business, this is called Customer Relationship Management. CRM Guide, 2006 - Next Media Publications

Baderman Island is one of the fastest growing tourist and vacation resorts in the world. They adopt unique market improvisation strategies which give the best customer service by recruiting the best qualified and experienced staff for there customer relations. The Customer Relationship Management for information needs at Baderman Island is used in a professional way. They use TQM (Total Quality Management) in the planning stage and the strategic objective needs to be determined and implemented. TQM only relies on facts in running the company successfully with sufficient capital revenue and investment. Baderman Island's mission is really focusing in all directions, Customers, Shareholders, Community and Employees. Customer's mission is totally designed to impress the expectations and experience the most value added services in a vacation. Shareholder's mission is to attract them and invest in there business by consistently increasing the brand value and share value for Baderman Island, making the business as pride to ownership and equity in the firm.

Employee mission is to retain the employees for a longer tenure in the company, by offering them the best Human Resources policies and the competitive salaries in the service industry. There mission for the entire company is to be recognized as the world's most finest resort in the world, which draws attention to all sides of the sources like employees, customers, shareholders and community CRM module, University of Phoenix, 2005.

Customer Relationship Management is well designed at Baderman Island by adopting various methods such as Strategic Planning, Decision Making, Employee Recruitment and Business Modeling. Strategic Planning is to provide the world class service to customers and make them as retaining customers to the resort which is the objective, method is through customer service. Employee Recruitment is done very professionally at Baderman Island which recruits well qualified and experienced staff for its customer relations. Business Modeling is done with future plans and objectives to attract community and shareholders to the company.

Customer Relationship Management Analysis

Customer Relationship Management is always the cost based activity for any company but the output will considered as value added customers. Companies which are using the CRM needs to make cost-benefit analysis to evaluate how the CRM is performing, we can know the ROI (Return of Investment) and the experience of the customers.

The case should be analyzed which includes the total system cost, total savings and the NPV (Net Present Value) of the system. That is it should include the tangible benefits (Cost Based Analysis) and intangible benefits as wells as risk assessment.

Three categories should be analyzed: System Implementation Cost, CRM is a well designed system which involves two types to costs i.e. IT cost and Implementation cost. IT cost is for renting and maintaining the software for CRM and Implementation cost for support functions, labor and administration charges.

Cost-Benefit Analysis - 10% of the budget should be allocated for the IT cost and as service industry is well driven by customer service, we require 40% towards Implementation cost, which includes high administration services, labor and support functions. Other functions will also be included in this Implementation cost such as planning, organizing and decision making. - Cost based Analysis for CRM Implementation, George Marwick 2007.

20% of the budget should be kept for savings and maintaining functions, where the risks should be analyzed like loss of investment, isolation and lack of measurement.

Benefits of Customer Relationship Management include high productivity among employees, cost-effective work, service orientation, Increase in revenue and margin of the business and usage of inventory etc... which should be analyzed which calculating the Net Present Value (NPV).

Net Present Value is calculated for CRM implementation by determining the Return on Investment (ROI). Net Present Value will be a calculation of total cost of the investment and the return on the investment and the expected rate of return. If the NPV is positive it is said that the CRM is running in profitable position. If the NPV is negative it is said that CRM is not properly implemented, need for revision.

References

CRM Guide, 2006 - Next Media Publications, Introduction on CRM

Baderman Island CRM case study - Houston University Journal, 2008

CRM Implementation - George Warwick Jones, Oxford Publications, 2005 series edit. 2

Cost based Analysis for CRM Implementation, George Warwick 2007

CRM - Cost-Benefit Analysis - CRM Expert at www.searchcrm.techtarget.com

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