CRM (Customer Relationship Management) refers to the strategic utilisation of human resources, processes, technology, and information with a view to enabling a company to manage how customers relate with its sales, support, marketing, and service functions across the entire customer life cycle (Kincaid, 2003). Therefore, CRM describes the strategies, technologies, and practices that a firm adopts in an effort to evaluate and manage customer data and interactions at all stages of the customer relationship. The ultimate objective is to retain customers and increase sales growth. Using a CRM system, a company is able to gather information on customers from various channels such as direct mail, the company’s website, and social media. Through CRM systems, a company is in a position to acquire in-depth information on customers’ purchase history, personal information, and purchase behavior, concerns, and preferences. According to Parvatiyar and Shainesh (2001), the overriding purpose of CR for a firm is to enable it to enhance its marketing productivity while also improving mutual value in its relationship with customers.
CRM has been shown to enhance the marketing productivity of a company and also promote mutual values through improved marketing effectiveness and/or efficiencies. There are various ways in which a CRM system can enable a firm to realise enhanced marketing efficiencies, such as through streamlining inventory management and order processing, minimising the costs involved in the process of acquiring customers, by setting and realising operational goals, and via customer retention economics. Once a firm has defined the purpose and objective of its CRM strategy, it is in a better position to shed more light on the kind of CRM activities and programs that business partners would be required to engage in. Moreover, defining the purpose of CRM is also useful in enabling the company to identify ideal relationship partners who possess the capabilities and expectations required to meet mutual goals. Besides, it could also aid in the assessment of CRM performance by comparing outcomes realised against set objectives. Such objectives could be strategic, marketing, operational, or financial goals.
Various companies have successfully implemented a CRM system with a view to managing customer interactions. For instance, Amazon has installed a CRM system with features that enable the management to analyse past customer purchases, and hence allows them to project future purchases. Elsewhere, FedEx uses a CRM system that enables its customers to track shipments and the status of orders. Customers can also access product updates via a CRM system. For instance, Canon has installed a CRM system that permits customers to update their printer drivers (Jiambalvo, 2009).
A computer network entails two or more computers in communication with one another through wireless or transmission line linkage to facilitate the exchange of data files, the sharing of resources, and the permitting of electronic communication (Bagad & Dhotre, 2009). According to Rainer and Cegielski (2010), computer networks have found wide application in modern organizations owing to their varied benefits. For example, computer networks add flexibility to a company’s operations, thus enabling it to adapt quickly to the changing business environment. In addition, companies can share computer applications, hardware, and data both internally and externally using computer networks (Rainer & Cegielski, 2010). Also, work groups and employees in remote areas can share ideas and data with their colleagues, thereby encouraging innovation, teamwork, and effective interactions.
We have various types of computer networks, and these differ according to their size and functionality. A local area network (LAN) consists of two or more computer devices connected within a smaller geographical area, such as within a single building. Usually, a switch acts as the point of connection of the various computer devices in a LAN, thereby permitting direct communication of the devices. Each device in a LAN is installed with a NIC (network interface card), thereby facilitating physical connection of the device to the communications medium. LAN enables resource sharing, comes at a low cost, and adds a high level of interconnectedness of independent devices (Agarwal & Tayal, 2009).
A Wide Area Network (WAN) is another type of computer network that permits the transmission of data over long distances. It also provides video information and voice image over large areas. A WAN also allows for the connection of computer resources situated at varying geographical locations. The distinguishing feature between LAN and WAN is the geographical area under coverage. In this case, WAN covers a very large geographical area, such as a continent. The intermediate nodes of the WAN are connected via communication circuits. A WAN can connect routers with LANs, thereby facilitating user communication (Shiva, 2013). WANs can either be distributed or central. Distributed WANs are made up of servers and client computers distributed across the WAN network. Conversely, central WANs entail one or more servers situated in a central location, with the central server(s) acting as a source of connection for client computers. In this case, the network's functionality is largely attributed to the central server.
The third type of computer network is known as a MAN (metropolitan area network). According to Barrett and King (2005), MAN integrates the features of both WANs and LANs. Nonetheless, a MAN is restricted to one geographical location known as a metropolitan area. The inclusion of LATAs (Local Access and Transport Areas) in MANs helps to define their boundaries.
Agarwal, B.B., & Tayal, S.P. (2009). Computer Networks. New Delhi: Laxmi Publications
Bagad, V.S., & Dhotre, I.A. (2009). Computer Networks. New Delhi: Technical Publications.
Barrett, D., & King, T. (2005). Computer Networking Illuminated. Burlington, Massachusetts: Jones & Bartlett Learning.
Jiambalvo, J. (2009). Managerial Accounting. London: John Wiley & Sons.
Kincaid, J.W. (2003). Customer Relationship Management: Getting it Right! New York: Prentice Hall Professional.
Parvatiyar, A., & Shainesh, G. (2001). Customer Relationship Management: Emerging Concepts, Tools, and Applications. New Delhi: Tata McGraw-Hill Education.
Rainer, R.K., & Cegielski, C.G. (2010). Introduction to Information Systems: Enabling and Transforming Business. New York: John Wiley & Sons.
Shiva, S. (2013). Computer Organization, Design, and Architecture, Fifth Edition. Boca Raton, Florida: CRC Press.
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