Importance of the digital media in customer relationship management (CRM)
CRM aims to achieve a competitive advantage by offering more value to customers. The customer value is striven by an approach to differentiating the management of individual customer relationships. But implementing a software tool alone to manage customer relationships does not guarantee such results [13]. Although the role of the digital media is crucial in accomplishing this objective, CRM is much more than a pure technology [14].
In order words, CRM enables a company to become familiar with its customers. Acquiring a better understanding of customers allows companies to interact, respond, and communicate more effectively with them [2]. Through information technology, companies can gather up an unprecented amount of data about their customers; demographics, psychographics, buying behavior and history. The existence of customer data does not simply lead to understanding of customers. In order to ensure successful implementation, the companies have to turn this data into customer information and, subsequently, know how to utilize this information for CRM purposes. Hence, CRM is about how customer information is used to create more personal interaction with the customers by making best use of digital resources.
CRM entails information from all relevant departments to be centralized to customer database so that customer information can be used intelligently to develop relationships with customers. Moreover, the central database in which the customers’ information is stored should be available for responsible for the CRM activities company widely. By accessing the central customer database, its creates a platform is created in which the assigned personnel get to meet each customer [15].
In addition, customer databases enable organizations to provide more satisfying and consistent relationship with customers, regardless of the channel the customer chooses. If CRM is well utilized, companies can move closer to their customers, and use more effort in finding new ways to create value for their customers. Via CRM solutions, companies can have up-to-date information of customers gained directly from customer interaction. Based on the understanding of customers, CRM allows for more targeted campaigns and tracking of campaign effectiveness [16]. In the long run, it produces a method of continuous analysis and refinement in order to enhance customers’ lifetime value with the company [17].
CRM offers customers better value based on customization, simplicity, and convenience for completing transactions [18]. Hence, customers may benefit from the belief that they are saving time and money as well as receiving better information and special treatment. Furthermore, customer support is improved, because all customer contact from sales, support, field service and marketing are centralized increasing customer satisfaction and retention [15].
CRM ensures that the company manages and coordinates the customer interactions across different customer touch-points. Customers get to communicate with organizations through various digital resources such as phone, fax, e-mail, and Internet. Since the utmost aim of CRM is the ability to communicate with customers on an individual basis, the mobile medium represents a convenient approach to existing channels [19, 20]. Since mobile technologies have become abundant, customers expect to interact with companies via mobile medium anytime as well as anywhere.
Many industries are increasingly utilizing the mobile medium. For example, in Finland, mCRM has attained a substantial number of industries. Customers of all major mobile operators, Finnish national airline and banks can perform various activities through mobile medium. The passengers in the public transport in the capital area of Finland can order and buy their tickets as SMS-message. In addition, some retailers and restaurants are among one of the first to promote services and activities through mobile medium.
The utilization of digital resources in CRM aims to ease business between both the customer and the company. The mobile medium offers several benefits to both parties including learning from and about customers, revealing their needs and interests, and on this basis, making it possible to provide customers with better and more personalized service. For example, the Internet has given power for the customers to get up-to-date information, easily compare products and services, and to get in touch with companies [21, 22]. In other words, mCRM aims at finding ways to make customers’ interaction and relationship with the company more positive by saving time, frustration, costs and inconvenience.
Digital resources also facilitate high speed message delivery, relatively low cost and high retention rates [23]. Consequently, mCRM is likely to be suitable also for the industries, such as retailing, involving a lot of customers to communicate with.
An important characteristic that differentiates digital media from traditional media is the concept of interactivity [24]. Interactivity means two-way communication, thereby facilitating real-time conversation between company and its customers as well as the opportunity of an instant response from either parties [25]. Therefore, the digital media is a giant leap ahead of traditional communication by incorporating interactivity. Hence, digital media may not have a comparative alternative when building a continuing dialogue between the company and the customer [26].
Conclusion
This study has discussed the many benefits of the digital media in customer relationship management as well as highlighting its key roles in ensuring effective management. Companies should embrace mCRM by sourcing for mCRM solutions. By doing this, they will attract customers’ attention, ensure better management of their customers, improve services and the overall success of the business.
 
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