Table of Contents
In business, the customer or client is one of the most treasured stakeholders. Different techniques have been used by businesses to lure more customers into a business, to gain a larger market share. When considering the B2C (Business 2 Consumer) model, the interactions between customer and business are carried out with the goals of increasing sales, sales prospects and traffic. Integration of CRM in business provides tools useful in technologically organizing, automating and synchronizing the business processes, which are based in sales, marketing, consumer service as well as technical maintenance. It is difficult to ascertain the necessity of CRM in a business, but it offers several strategies towards customer relation valuing.
|Business Model||Organization||Overview||Customer core|
|B2B||USPS||Offers shipping solutions moving merchandise, gifts and parcels across the world.||Businesses that use USPS services to transport documents and parcel|
|B2C||HP||Provides hardware, accessories and software solutions to businesses and individual product users||Any consumer around the world interested in using computing services, in business or personal use|
|C2C||Skype||A part of Microsoft offering innovative technology to connect friends and family||Customers looking to communicate through social media|
|G2B||New York Stock Exchange (NYSE)||Global operator of financial markets and a provider of innovative trading technologies||The US and Europe, NYSE Euronext equities marketplaces|
|G2G||Kenya Airways||Provide commercial aviation services with an aim of development||Wide array of customers ranging from public and government officials|
|G2C||US Department of Defense||Provide the military forces needed to deter war and to protect the security of our country.||The public and Government officials|
|Business Model||Organization||Overview||Customer core|
|B2B||Maersk||Providing freight services from one terminal to another||Any company shipping cargo|
|B2C||Nivea||Research and provision of skincare products||People of all ages who need skincare products|
|C2C||Superior Homes||Facilitating home owners to their dream homes||Homeowners and land developers|
|G2B||Kebs (Kenya bureau of standards)||Analyzing the quality of goods||Businesses and organizations selling products to consumers|
|G2G||Ministry of Roads||Building and repairing road networks||Government and the public|
|G2C||Health Ministry||Ensure health of the public||Government officials and communities|
C2C takes on a modern approach to customer relations; the system does take on a new meaning of relations with customers. The first thing that is associated with the system is the adoption of a team approach to the customers (Bryan, 2002, p. 202). The organization employs based on how an individual fits into a team (Bryan and Stone, 2001, p. 39). Thus, style of management is controlled by the policies that have been set by the Human Resource Management sector (Bryan and Stone, 2001, p. 201). The modern approach to customer relations involves people management. The customers to the organization are engaged based on their desires wants and as part of a segment that present a demand and specific requirements of the organization (Haag, Cummings and McCubbrey, 2005, p. 28).
Human management as a style that is used by the business organization concentrates on the wants that an individual brings into the Skype (Laudon and Laudon, 2006 , p.102). The Skype has stringent policies on which customers benefit from as the employed staff adhere to the policies (Purcell, 1987, p. 29), a fact that is expressed in different settings such as when referring to family, (Haag, Cummings and McCubbrey, 2005, p. 99),.
The Skype has also adopted a structure that is based on personal and team responsibilities within the organization, which differ from any trade union system of operation. The organization’s policy on performance requires notification for the underperforming department. The system used is analytical based on the quality an individual brings to the Skype (Laudon and Laudon, 2006, p. 291).
Social media applications such as Facebook, Twitter, and YouTube among others are one of the most influential tools to CRM. The social media tools are, to business, channels in which information can be conveyed between the business and the customer. This in a B2C model is quite important. The tools in this capacity can be used for a number of reasons and capacities, which may go toward helping the business in ensuring that the needs of the market are met. This is supported by the fact that feedback can be obtained from the channel, quite easily with the right tools. the social networking tools are useful in popularizing the services provided by Skype. The social media applications are a method by which an organization can reach to the common users on an interpersonal level, thus are useful in marketing and advertising. In addition to ensuring success of the venture, to the user, the applications have the ability of syncing the user’s social circles.
The approach to management takes on a modern management style that gives customers roles, responsibilities as well as a supervisor to answer to in the course of their employment. The approach means that individual contributions to the Skype are looked into during the running of business. Skype uses automation software for services such as the creation and management of the users. Skype as an online application works via managing user accounts details such as the usernames and passwords as well as the contacts in the application. The automation plays the role of management, which is useful for Skype in the CRM department where the account holders require stable and reliable service (Laudon and Laudon, 2006, p. 102). Although the system makes use of preset performance requirements, the Skype ensures that it appreciates the efforts put in by the customers at any one given time in every position as it is stated by the Skype as directly linked to a number of factors contributing to outcomes in the financial and other concepts.
Under CRM strategies and business processes the performance of personnel in the organization is an important goal and objective driven element of analysis. The chosen employee management style in relations allows the management to keep track of the growth of the organization on an overall state as well as in the personal concept. The style emphasizes the fact that individual workers are the unit by which the business organization operates. By choosing the individualistic approach to employee relations, the organization is able to utilize the human resources acquired via the analysis of strengths and weaknesses of individual workers (Martin, Brown, DeHayes, Hoffer and Perkins, 2005, p. 19). As it has been stated in the study, the management style is also meant to be encouraging to individual players of the organization. The aim of the matrix management style is to create teams that are fully backed by individuals who are concerned with the outcome and whether it is acceptable by the team leaders. The leadership is designed to concentrate on positive enforcing to ensure that there is an increased performance at both individual and team capacities (Dyche, 2001, p. 3).
To a business, CRM has several benefits that provide a competitive advantage in business. An improvement in quality and efficiency is one of the advantages associated with the CRM. Quality and efficiency in a business is measured by considering the satisfaction of customers, which is often projected in sales. Through CRM quality and efficiency can be improved by obtaining feedback from customer as well as customer through different channels, with social networks being one of the avenues that this data may be obtained. Sites such as Facebook, Linked and Twitter provide a platform for businesses and consumers to connect and learn more about each other.
CRM as a technology is a cheaper management method, especially when compared to traditional techniques. Various exercises in the business such as marketing, sales and customer feedback were based on human resource as opposed to technology. The costs of the traditional approach were quite high in initialization as well as maintenance; however, CRM technologies are relatively cheaper, especially on the maintenance and sustenance costs. This CRM approach thus lowers the costs incurred by the business on an overall capacity through reduction of both fixed and variable costs.
Along lowered overall cost, the other benefit associated with CRM in business is an increase in profitability. There are different reasons associated with increased profitability, but logic dictates that a reduction in expenses results to an increase in profits in the organization. However, there are other inputs associated with CRM that work towards increased productivity in the business. Businesses benefit from variations of CRM such as automation in the sales department, which allows 24-hour trading, provision of customer support and services, marketing via different channels such as social media and lowered costs of implementation among others. Social media applications in CRM are of great interest due to the wide interest they have on the venture.
Changes in the management of human resource in the concept of employee relations have undergone a lot of changes through the 1980s and 1900s in the society. The changes that employee relations underwent during this epic era is an important contributor and facilitator to the current system used in business. The employee relations element is best explained as a struggle between the management and the labor force regarding meeting of goals, responsibilities and tasks within given working parameters. The relationship between the management and the workers has always been tough to crack with the social differences created by authority and financial consequences creating a huge gap for most approaches (Martin, Brown, DeHayes, Hoffer and Perkins, 2005, p. 49).
In any organizational setting, productivity is a needed outcome objective. The goal to the management is producing as much products as possible without having to depreciate quality, but without having to incur any extra cost in the production process. With such parameters, the laborers usually feel, and are often, oppressed to meet the desires expressed by the management. Adoption of the human management techniques ensures both management and workers establish a balance that revolves around the satisfaction of both entities without having to oppress either parties (McNurlin and Sprague, 2006, p. 123).
Current Human Resource Management techniques draw most of its inspiration from employee relations and the growth it experienced. The richest history of the relations between personnel and the management is based in the 1980s and 1990s. The unskilled workers group is probably the most active personnel in the context of employee relations. In the industrial revolution period, the unskilled workers were exploited by the management in terms of working conditions as well as pay. The introduction of technology within the working environment meant an increase in productivity and a possible decrease in operations cost since the machines replaced human workers, which also gave the management the chance to lower rates due to an increased competition between workers for the limited slots available. This happened to be the source of rows between the management and the workers.
In an effort to fight against the oppression they faced from management, laborers resulted to violent means of expression such as strikes and demonstrations. A noble idea of expressing their grievances as a multitude carried with it some degree of threat that was not taken into by the management and authorities. Crimes associated with the gathering of workers were quite common. The integration of politics in the grievances gave the laborers the chance to form a body that is legally recognized to address their woes with their employers and thus began the rise of trade unions (Motiwalla and Thompson, 2009, p. 468).
Unions were vessels that personnel found useful in addressing some of the grievances they had at work. The unions provided a platform though which uniformity in the working place could be defined. By doing this, it was possible for the personnel to come to understandings with various employers regarding the condition of the working environment, number of hours, payment and leaves among other issues. Trade unions analyzed how organizations treated their members and took legal action if the standard conditions of operation were not met. Personnel need to register with trade unions if they were to benefit from the advantages the organizations introduced in the working environment.
Unions had a major flaw in employee relations, they worked on the assumption that the workers; productivity was equal. This was a flaw in the line of thought regarding employee relations for different parameters, environments, personalities and attitudes affected the output of the workers. The trade unions were thus both advantageous and disadvantageous to both the personnel and employers. A scenario of a disadvantage associated with the trade unions would be when it came to promotions. With organizations barely concentrating on the efforts placed in by their employees, choosing an employee to promote within the Skype is a nightmare. The absence of an internal analysis strategy within organizations and the trade unions meant that it was impossible to identify quality workers within the organizations and companies. With more organizations concentrating on the performance of its employees, the trade unions began losing popularity with the personnel as well as employers, as a performance based analytical approach was necessary to introduce fairness in the workplace. It was logical that efforts in working were realized and a reward associated with the efforts accorded to employees.
The decreasing popularity of trade unions was as a result of preferences by the former union members. Adoption of employee relations associated with Human Resource Management meant that employers would make decisions and analyses performance and productivity on an individual level. Concepts such as the level of education of an employee came into play when considering various positions, payment packages and working conditions within the organization. This system of employee relations was especially necessary with the expansion and growth of most industries during the era. Expansion and growth of organizations created new opportunities for personnel whom needed a means by which credentials would be used to allocate responsibilities (Motiwalla and Thompson, 2009, p. 380).
Human management techniques in employee relations is based on an analytical, strategic approach by which the management and workers develop a network of an organization based on position, roles and responsibilities to ensure productivity and performance. How employers relate in the modern techniques incorporates technology and extends beyond the workplace as concepts of social, psychological, health and mental conditions are assessed and analyzed to ensure that all entities within an organization perform optimally towards the goals set by the management (Greenberg, 2002, p. 328). The employee relations also provide means by which the needs of individual employees, departments or an organization as a whole are presented to management. The system also incorporates communication as a contributor to employee relations since information regarding operations within the organization is necessary for the optimization of efficacy and efficiency in the execution of various tasks within different departments and by different individuals allocated the role of ensuring that certain tasks are completed within a given time frame.
The concept of employee relations is greatly influenced by the development of the subject in the years between the 1980s and 1900s. During this period, the management of human resources helped in identifying the contributors towards performance and what conditions encourage performance. In the same concept, the growth allowed the organizations to ensure that the taskforce allocated a given task is optimal for performance. The development particularly influenced the mode of decision making within the organizations regarding the workers, their roles and strategic tracking of their involvement in an organization, in addition, the growth addressed the issue of individual contributions to the growth of the organization (Greenberg, 2002, p. 34).
The B2C structure may use data that has been collected through the social media platforms to address the concerns of the market as well as acquire analytical data over competitors. The social media applications can be a tool that projects trends in the business sector by showing the trends followed by the market in regards to preferences to products, which shall provide insight to the business. This is thus an important element in CRM since it allows for the business the ability to interact with consumers at an interpersonal level and in doing so obtain data that is relevant for the pursuit of the market share.
CRM software applications are another implemented pursuit in B2C models. The applications can help in management in the capacities of data collection, processing, evaluation and analysis. The applications may thus be helpful in making deisms that shall favor the business in the eyes of the market. An example would be the effect of lowering the prices of a commodity for an organization. The variables of the organization would look into the idea and make decisions regarding the projections supporting or disapproving the idea based on operational and market factors such as a compromise in quality of the product associated with such a move.
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Another input associated with management is the idea of effectiveness and efficiency. The business sector has an advantage of being able to implement various software applications that shall help in managing the customer end via data analysis and evaluation. Businesses using the CRM application usually benefit from automation services, which met the demand of a global society as opposed to a regional organization. Automation of customer services such as sales, which allow hundreds of transaction at any one given time, surpasses the outlet stores and the human help that is often associated with the stores. Such a strategy goes towards reduction of costs and the improvement of customer service delivery. Such software implementation to an organization that operates under the B2C model is of numerous advantages especially with productivity and output increase. By doing that, it is possible to increase the turnover of the company by ensuring that customers are effectively and optimally served by the applications associated with CRM.
CRM as a service is being offered by vendors who are using technologies such as cloud computing to offer updated applications for businesses. The CRM trends are towards IaaS (Infrastructure as a Service) and SaaS (Software as a Service) which use the web platform to popularize the services offered to the market due to a common and shared system. Not every business is looking towards introducing a new software application or its CRM needs. Applications to the business with B2C models prioritize the customer needs and to obtain this a renowned software or web application must be called upon for effective communication from the consumer. This is one of the reasons why social networks and media are a popular communication channel due to the idea of helping common to the users.
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The idea of CRM is effective and advantageous in different capacities. With businesses taking up the globalization challenge through web technologies, the CRM strategy is an important investment for all businesses. Having the ability to manage the business via software, which means that automating the business, is possible with managing of orders and information from customers allows the business sector the opportunity to grow without having to rely on progressive business community decisions. The CRM strategy integrates business practices such as market segmentation, which are geared towards a production based on the market.