Cross-Functional Processes in Customer Relationship Management

Customer Relationship Management (CRM) is a strategic approach which involves creating a superior value for shareholders by developing relationships with certain categories of customers. CRM mixes the potential of information technology with specific relationship marketing strategies in order to create long term profitable relationships. CRM involves the management of customer relationship initiation, maintenance, and termination across all customer contact points to maximize the value of the relationship portfolio. Thus, CRM involves an integration of human resources, operations, processes and marketing capabilities, which is enhanced by information technology. To achieve superior performance, a growing number of companies are developing elaborate CRM systems and making creative use of sales force automation data warehousing, data mining and other query tools to better understand their customers. CRM systems are helping organization to identify and target their most valuable customers, to make more effective and efficient allocation of resources to achieve company goals. The literature notes a lack of CRM strategic framework that addresses management, technical and customer issues. This paper aims to emphasize the need for cross-functional approach to CRM which includes analyzing the five key processes: strategy development, value creation, integration of communication channels, information management and performance evaluation.