Question

1. How can a good CRM system increase profits for a company?

2. Sometimes it is difficult to convince top management to commit funds to develop and implement a SIS.
Why?

Answer 1

1. A customer defection rate reduction of 5% the company profits can increase by as much as 85% (based on Harvard Business Review) due to

a). Increased transaction volume which will lead to economies of scale and

b) Increased utilization of already made investment

c) Return customers also refer other associates to do business with the company and

d) They cost less to serve

e) They are willing to pay more to be served by the retaining company than another establishment which they are less familiar with and in which they have a less trust relationship

2. The reasons why it may be difficult to convince top management to commit funds to develop and implement a SIS includes

a. A misalignment of views on the way forward

b. Existence of certain business constraints known only to them

c. Top management could have more query about a SIS due to lack of interest or inclination

d. It is difficult to promote the idea of committing funds to the development and implementation since the it is based on assumptions and that of a stranger's opinion

Step-by-step explanation:

1. A Customer Relationship Management (CRM) system is utilized to manage customer data as well as information communication

A business that employs a CRM system as a strategy will benefit from improved optimization, centralization and well organized customer communication which will lead to higher customer retention rates and an increase in revenue.

2. A Strategic Information System (SIS) assists a company in the changing of their strategy of doing business and the company organizational structure. The function of an SIS is to enable the company react faster to changes in the business environment such that the company can have an advantage over the competition

Therefore, since the SIS is meant to implement change, there may be several reasons why the more experienced, top management, in the business will be reluctant to commit funds to develop an implement a SIS such as

a. A misalignment of views on the way forward

b. Existence of certain business constraints known only to them

c. Top management could have more query about a SIS due to lack of interest or inclination

d. It is difficult to promote the idea of committing funds to the development and implementation since the it is based on assumptions and that of a stranger's opinion.

Answer 2

There various ways in which a CRM framwork can support a business is given as follows: Deals group assignments can be improved as different tedious procedures are computerized,

With a CRM framework work, productivity is improved, It permits you to portion the best organization accounts on various parameters, The most important factor it causes you produces more leads and transformations for your business.

It is very difficult to convince top management to produce funds for the development and implementation of an SIS, this is because big security and intelligence service is being hacked by professionals of cyber crime. But now it has become more better to effectively trace such people doing such activities, which is beneficial over time for top management.

Step-by-step explanation:

(1)There are various ways by which a CRM framework can support an association (little, medium or enormous) to oversee diverse key variables like deals, support, advertising, field administration, ventures and that's just the beginning. In a simple language CRM helps in earning profit for the organization by the following ways, which is stated below:

• Permits you to adequately and proficiently oversee information.

• Deals group assignments can be improved as different tedious procedures are computerized.

• With a CRM framework work, productivity is improved.

• It permits you to portion the best organization accounts on various parameters.

• The most significant factor it causes you produces more leads and transformations for your business.

• Client commitment and backing is improved.

• Email battles and distinctive promoting exercises should be possible just as followed in a proactive manner.

• Clients can without much of a stretch track requests, deals and solicitations.
• -Improves field group efficiency, as every single action performed can be followed ease.

• With a CRM framework, you can without much of a stretch distinguish rehashed clients as customer subtleties as store in an efficient manner.

(2)It is not easy to convince top management to generate funds to create and implement a SIS which is Security and Intelligence service because many cyber crimes are being done easily in the name of organization and big big security and intelligence service is got hacked by the professionals doing cyber crime and hacking data but now it has become more efficient and people doing such activity can be traced easily but top officials are not aware of these benefits so they never get satisfies easily.