How Do They Know Their Customers So Well? Essay Example

A customer relationship management (CRM) system could be used to pinpoint problems within the supply chain and make sure that they are removed before heading to the next level (Davenport et al., 2001). Overall, this system supports the supply chain by providing quality control processes. If the product reaches the next level and is still contaminated, there is an opportunity to send it back or tend to the issue through CRM support. Improving interactions with customers is an important component of supply chain management because it allows the organization to detect quality breaches early by receiving customer feedback.

Ultimately, this feedback process is valuable because it allows the management team to gain an understanding of the customer needs which allows the supply chain to be altered in a manner that allows for the development of efficiency. This feedback could range from negative to positive, allowing the company to rectify mistakes it has made to generally improving its practices. This specifically pertains to opportunity management because this type of feedback allows the organization to determine growth, which ultimately helps them made a forecasting model that will help develop and understanding of sales projection.

These systems allow the company to use campaigns that help establish and maintain customer relationships. This is valuable because this is applicable for all organizations, as strengthening this customer base contributes to profit whether a good or service is being provided. Furthermore, the CRM allows these individuals to track campaigns over networks and throughout time to determine which methods are efficient. Overall, organizations can benefit by determining which CRM implementation will work best for them. Optimizing these procedures are therefore necessary to ensure institution success.

References

Davenport, T.H., Harris, J.G., Kohli, A.K. (2001), How do they know their customers so well? MIT Sloan Management Review, 42(2): 63-73.