Implementation of a Customer Relation Management System (CRM) in B2B Term Paper

Implementation of a Customer Relation Management System (CRM) in B2B with the example of Aviation business - Term Paper Example Therefore, airline organisations need to develop new methods to manage the customer relationship in order to enhance customer loyalty and income. The impacts of global economic downturn along with the terrorist attack of 9/11 have severely impacted on the aviation business. The airline companies concentrate on operational developments in order to minimise expenses without ignoring the demand of customers. Customer relationship has nurtured for aviation companies to maintain competitive advantage and productivity in the long-run. The customer relationship management (CRM) has become a tool for aviation companies for managing good association with the customers (Boland & et. al., 2002). The paper explains the CRM system in B2B business with concentration on aviation business. B2B allows one business to interrelate with other business. The developing technologies have enabled businesses to apply CRM system in B2B. The chief resemblance between B2B and CRM is that they both work on onlin e platform. Therefore, developing and implementing CRM strategy on the basis of B2B model can result in low managerial expenses, well-organised marketing promotion and improved customer receptiveness. By using CRM in B2B, aviation organisations can increase the reach of customers and lessen the expenses of quality management (Zeng & et. al., 2003). The paper describes how CRM can be conducted in B2B aviation organisation. The objective of the paper is to understand various aspects of CRM in aviation organisations concerning designing, implementation and procedure which must be considered in order to get positive results. 2. The Strategy 2.1 Design CRM Strategy Several organisations pursue expensive CRM initiatives without considering the challenges and the expenses involved in them. Therefore, they are unable to get the benefits of CRM. IT and CRM managers are responsible for economic reasoning in order to make sure that CRM plans get appropriate funding. Aviation organisations must realise that CRM is a business strategy with underlying technology and it necessitates huge spending of money in software, hardware, communication, consultation and employee training. Objectives of CRM The major objective of CRM is to enhance the level of customer satisfaction. The task of CRM is not only providing technological support to the business, but it also acts as marketing philosophy for organisations. The â€Å"one-to-one† marketing system which has appeared in present days, proposes organisations to be more prosperous if they focus on gaining and preserving a portion of every customer, rather than a portion of entire market. In this context, information technology i.e. CRM can become an enabling aspect for organisations. With the improvements in technological innovations and the emergence of internet, CRM has become powerful enough to forecast the behaviours of customers, develop value–added functions, reinforce the brand image and develop customer support functions. CRM is a technology empowered business approach whereby organisations influence increased customer information in order to establish commercial relationships, on the basis of optimisation of value provided to the customers. Customer satisfaction through implementation of CRM can be achieved by lessening of cost of services, development of