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Nastaran Mohammadhossein, Dr.

Nor Hidayati Zakaria / International Journal of Engineering


Research and Applications (IJERA) ISSN: 2248-9622 www.ijera.com
Vol. 2, Issue 6, November- December 2012, pp.1578-1586
CRM Benefits for Customers : Literature Review (2005-2012)
Nastaran Mohammadhossein*, Dr.Nor Hidayati Zakaria Author**
*(Department Of Computer Science And Technology, UTM University, Malaysia)
** (Department Of Computer Science And Technology, UTM University, Malaysia)

technology tools for enterprises that enable the firm


ABSTRACT to expand its customer relationship management
CRM is a strategic approach that [3]. It will raise the firms ability to earn profits and
integrates people, business and technology to generate higher-quality products or services. Based
understand the needs of customers to be more on Gartner explanation, CRM is a business strategy
satisfied. Customers are the vital key for each designed and implemented to help the firms and
business and company to help them to grow. So, companies to know and foresee the requirements of
implementing CRM applications is one of the their potential and obtainable customers. Discover,
important tools that will help managers and attract, and find new clients and customers are the
companies to increase the satisfaction and loyalty vital aim of the CRM. Pay attention and be
of customers more than before. Beside this, there responsible about those customers which are the
are some benefits which will affect on customers loyal customers, attract previous customers for
after implementing CRM. These benefits will come to the company again, and lessen the cost and
help the customers to become happy and money of promotion; marketing and customer
pleasant of using the companies that is offering service are also goals of the CRM [4]
their product and services from using CRM According to Winer [5] this revolution in customer
facilities. In this study, we find eight benefits of relationship managementhas created a worldwide
CRM which are important and beneficial for market for CRM products and services of $34
customers such as improve customer services, billion in 1999, a market that is forecasted by IDC
increased personalized service, responsive to to grow to $125 billion by 2004. While there is a
customers needs, customer segmentation, huge investment in CRM implementation , still
improve customization of marketing, there are many CRM initiatives that fail to
multichannel integration, time saving, and understand their proposed benefits [6] .
improve customer knowledge. We reviewed Although CRM has a huge impact on the
previous studies, and identify these benefits firms and organizations, there are some advantages
which will affect on customers. Our result will and benefits of implementing CRM which have a
help the managers and companies to know and direct impact on the customers, and will bring
recognize the factors and benefits of CRM which customers satisfaction and improving retention of
are more significant for their customers. So they customer. Assessing and finding the benefits of
can increase their customers satisfaction and CRM is a vital aspect of managing [7]. These
retention by more attention to these benefits. benefits will help the firms to find out the way that
increase effective relationship with customers and
Keywords - CRM, BENEFITS, CUSTOMER finally will profit firms. Some studies classified the
benefits of CRM in terms of operational,
I. INTRODUCTION organizational, strategic, IT infrastructure, and
Customers are the critical factors in each managerial. In our study, we want to find out the
business. In all companies, the loyal and the fixed benefits of CRM for the customers. Since the
customers are expecting more level of service customers are the critical key for each organization,
qualifications, suitable transaction, and customized they will have a huge impact on making profit and
products. So it means that the companies should be sales.
informed of each customer to increase the loyalty Considering that some of the effects of
and effectiveness. For this reason, CRM systems CRM are multi-dimensional faceted, the objective
can help to change the way that each company is of this paper is to have literature review about the
treated with customers and employees, to promote CRM benefits. The CRM benefits will affect on the
its revenue and obtain higher final profit. customers needs and acquiescence that could be
Nowadays, organizations are implementing extensible. Also the results can be comparable
Customer Relationship Management (CRM) across time, different systems and contexts.
applications more and more because CRM will help .
them to achieve a range of business benefits [1-2]. II. CUSTOMER RELATIONSHIP
Moreover, Implementing CRM will MANAGEMENT (CRM)
consider as a set of information processes and In a general Customer relationship
management (CRM) is a business strategy, which
aims is acquiring new customers and retaining

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Nastaran Mohammadhossein, Dr.Nor Hidayati Zakaria / International Journal of Engineering
Research and Applications (IJERA) ISSN: 2248-9622 www.ijera.com
Vol. 2, Issue 6, November- December 2012, pp.1578-1586
current customers to increase competitive improving customers satisfaction. There are a
advantages. CRM helps firms preserve relationships numbers of studies which have explored the
with customers that are directly connected different aspect of CRM, such as CRM benefits.
competitive compensation. The basis of CRM is Recently, some researchers are classified the CRM
relationship marketing, which aims are improving benefits based on Shang and Seddon s (2002)
the long-term profitability of customers through enterprise systems benefit frameworks [6-7].
moving away from product-centric marketing to Although this studies are very efficient in extracting
customer-centric. the benefits of CRM, but still there is a lack of
More and more, firms understand the CRM framework benefits which present the CRM
worth of establishing close relationships with benefits from customers point of view. Considering
customers to growing retention. According to customer as an end user who is interacting as an
Khalid Rababah [8] Knowing customers, will external user with CRM applications, will help to
enable firms to serve them better and keep them take out those benefits which are related to
loyal forever. This is the main theme of Customer customer. Therefore, through reviewing the past
Relationship Management (CRM). Therefore , literatures, it is possible to find and extract those
Defining CRM is necessary for increasing and benefits that are important for customers.
developing a clear perceptive and vision of what
CRM means to a business and organization while III. CRM BENEFITS
the lack of such obvious understanding is There are some problems regarding the
considered as an obstacle to successfully implement benefits of CRM ,David [21] , as Managers did not
CRM [9]. know what kind of advantages the CRM system will
The CRM concept is used widely in brings to a company. So management should have
cooperation of perform and research, while not for at least the basic understanding or knowledge about
all time without fail [6] and also , Rigby [10] CRMs benefit. The following lists of CRM benefits
[10][9][9][9] states that the majority of executives are selected and minimized from a wide range of
can not immediately define CRM. Therefore, here survey from latest CRM studies.
we present some definition to describe the meaning With CRM systems customers are served
of CRM. better on day to day process and with more reliable
In the other definition ,CRM is the information their demand of self service from
combination of marketing efforts, business companies will decrease. Therefore if there is less
processes and technology which will lets the firm need to contact with the company for different
to know and recognize its customers from numerous problems, customer satisfaction level increases [22].
perspectives [11]. Through Implementing CRM Companies can
In addition, a number of studies define remove confusion that exists in the productivity,
CRM more holistically and they attempt to define efficiency and control and every level through
CRM through its association with technology, and appropriate use of CRM (Rushforth, 2007).
also as a business strategy [12-15]. In recent findings, the list of benefits will
On the other definitions , Kincaid [16] be considered as a critical connection among CRM
defined CRM as a strategic tool that use of initiatives and growth of customer equity. These
information, processes, technology, and community central benefits of CRM will be connected
to handle the customers relationship with the hypothetically to the three kind of equity that are
company departments such as marketing, sales, relationship, value and brand, and in the end to
services, and support, during the customer life customer equity[2]. Eight core benefits were
cycle, and Buttle [17] quoted that CRM is an recognized to provide value drivers.
integration of technologies and business processes 1. Enhanced ability to target profitable customers
used to satisfy the requirements of a customer 2. Integrated assistance across channels
throughout any given interaction. CRM involves 3. Enhanced sales force efficiency and effectiveness
achievement, analysis and exploit of knowledge 4. Improved pricing
about a customer to sell more goods more 5. Customized products and services
efficiently. 6. Improved customer service efficiency and
In the other literatures , CRM is defines as effectiveness
an opportunity to increase profit, attracting and 7. Individualized marketing messages
retaining economically valuable customers
though removing economically invaluable ones CRM system helps companies to keep and record
[18-20]. the customer information, like their goals, needs
Consequently, by looking towards the CRM and events. Moreover, saved knowledge is updated
definition, it is clear that satisfying the needs and into the CRM system, so that the customers
requirements of customer is an important and information will be up to date without being
significant part of CRM. Also, one of the vital outdated. With these connections the information is
goals of firms through implementing CRM is always expands in the CRM system that enhances

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Nastaran Mohammadhossein, Dr.Nor Hidayati Zakaria / International Journal of Engineering
Research and Applications (IJERA) ISSN: 2248-9622 www.ijera.com
Vol. 2, Issue 6, November- December 2012, pp.1578-1586
the profile data for customers and works like a Dimension Reference year
strong instrument in making business decisions Improves customer [27] 2005
[23]. segmentation and assessment
Enable communication
Greenberg [24] stated that through through multiple selling
developing the total lifetime value of customer, channels
CRM can raise the true economic worth of a The ability to gather [28] 2005
business. Moreover successful CRM strategies customer data
promote customers to purchase more products, stay identify the most valuable
loyal for longer periods and be in touch effectively customers and increase
with a company. customer retention is highly
Curry and Kolou [25] quoted some benefits and desirable
reasons for adoption of CRM :
learning from
Customers from the competition will
customers(customer
desire come your organization, Simplify customer-
knowledge)
focused internal organization will make simpler the
infrastructure, decrease the workflow and remove
Deliver the right product [29] 2005
non-productive information process, and Profits will
and service in the right time
increase from more satisfied customers and more
from the right channel
integrated focused company.
Since adopting CRM will provide a lot of Channels for customers to
benefit in firms and their process, it would be give feedback
helpful to clarify results and benefits of Produce personalized and
implementing CRM for them. Therefore, they will customizable product and
have a good background about the results and services
incomes from using CRM applications. Institution of customer
As we mentioned above, most of the trust in CRM systems
previous studies on customer relationship Information use and [6] 2005
management (CRM) focused mainly on exploring capture
CRM benefits from organizational and managerial Better personalized
point of view, and there is a few studies that service
specifically concentrate on customers point of Being more responsive to
view. However, finding this benefits and reinforcing customer requirements
them in the company will affect on the satisfaction Closer relationship to its [30] 2006
of the customers. We had reviewed some of the customers and offer phone
previous research and studies since 2005 to 2012 services
which were about the CRM and its benefits. It will Servicing customers and
help to find the benefits which are critical for receive information to
customers. For this reason we reviewed around 60 develop the level of service
papers and select those studies that were mentioned offered to customers
benefits of CRM for customers too. Because of the Target commercial [2] 2006
limitation of our domain search, only 15 papers customers
were recognized that were exactly mentioned and Offerings from different
discussed about the CRM benefits from customers channels
sides. Of course, these studies and others had Enhanced customer
mentioned some other benefits of CRM form other service
views but, here we focused on the benefits which Customized products and
are for customers only. services
Advance responsiveness [31] 2009
Accelerate delivery lead-
times
Enable customer
knowledge management
Develop customer
Table1 : CRM customers benefits segmentation
Dimension Reference year Targeting the most
Enhanced customization [26] 2005 profitable customers
of services and product Improve product and
offerings business innovations

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Nastaran Mohammadhossein, Dr.Nor Hidayati Zakaria / International Journal of Engineering
Research and Applications (IJERA) ISSN: 2248-9622 www.ijera.com
Vol. 2, Issue 6, November- December 2012, pp.1578-1586
Dimension Reference year Dimension Reference year
Enhance customization of communication
marketing efforts and Customized products and
messages to individual services;
customers Improved customer
Permit multi-channel service efficiency and
integration success
Allow multi-channel Identify and target their [38] 2012
communication best customers
Enable personalized Allowing the formation of
products and services individualized relationships
Improve product with customers
separation Identifying the most
Focus on customers and profitable customers and
their needs providing them the highest
Provide customers a level of service
one-to-one skill Understand and identify
Personalized services [32] 2009 customer needs and
Customers knowledge
and experience empowered
Deliver high quality IV. CRM BNENEFITS FOR CUSTOEMRS
service According to the above table, and reviewing the
Meet customer previous studies, we selected some of this benefits
needs(personalization) which are more significant in customers
Employee empower more satisfaction. We summarize them into the following
time to serve up customers cases:
Advanced satisfaction Improve customer services
ratings Increased personalized service or one to one
Targeted product and service
service contributions can be Responsive to customers needs
timed to match with Customer segmentation
customer actions and Improve customization of marketing
requirements Multichannel integration
Individualization of [33] 2010 Time saving
market Improve customer knowledge
Customization of product
and services According to table1 this benefits rate and
Improved responsiveness [34] 2010 frequency can be seen in the following fig1 .
Valuable time savings
during reduction of the
search effort
Seamless communication
Enhancing customers [35] 2011
attentiveness
Consolidating helpful
services
Describe diverse [36] 2011
customer groups that will be
served in different ways
Customer service and
support service operations
Predict potential and Figure1 : CRM customers benefits frequency
personal customers behavior Based on table1, we find the most repeated benefits
Improved capability to [37] 2011 for customers and tried to show the frequency of
target profitable customers these benefits in fig 1. Based on this classification
Integrated contributions we can see these eight benefits frequency and
across channels numbers of repeat in these fifteen studies from
Individualized marketing customers point of view. So it is important to

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Nastaran Mohammadhossein, Dr.Nor Hidayati Zakaria / International Journal of Engineering
Research and Applications (IJERA) ISSN: 2248-9622 www.ijera.com
Vol. 2, Issue 6, November- December 2012, pp.1578-1586
know and discuss about the vital benefits of CRM produce a more satisfactory transaction, and over
that will impact on customers. For this reason, time, a more satisfactory relationship. Personalized
having an overview about these dimensions will service should simply be better service than routine
help the companies to know this importance. service that does not take the individuals needs into
account.
A. Improve Customer Services With a Personalize service companies
Customer Service is a communication concentrate on what the customer desires to buy
among a customer and the company, frequently by more than what the company wants to purchase.
usual channels like phone or email. Regularly the Therefore, one to one service is a strategy to meet
customer will have a concern or request that wants the customers needs and helps them to become
resolving. CRM services provide a business with happy through providing personalize service.
the ability to produce, allocate and manage requests
made by customers. For example, Call Center C. Responsive to Customers Needs
software, which helps to connect a customer to the CRM is not only application of
manager or person who can best assist them with technology, although it is a strategy to study more
their existing problem, is one of the CRM abilities about customers' needs and requirements to
that can be implement in the firms and implement powerful relationships with them.
organizations. Recognizing and using of this type of Customer responsiveness is providing customers
service can help to the companies to improve their what they deal to obtain, nothing more, and nothing
clients knowledge to improve customer services less. CRM is a strong tool to help the companies to
and also can increase efficiency and minimize costs focus more proactive on their customer
[39]. responsiveness. CRM contains gathering
Personalized services, identify and reward information about customers to discover better ways
profitable customers, creating and scheduling to satisfy their needs.
appointments with customer, customization of Focusing on customer needs and
marketing efforts and sending messages to requirements, take the relationship one step further.
individual customers , providing multi-channel It shows that companies can understand their
communication , and More responsive to customer customers situations and needs [42]. Its the right
needs are some of the CRM applications ability of each customer to want the companies for foresee
which can impact on customer service quality [6-7, what will bring value to them through finding and
40]. addressing their unknown wants and needs. And,
A business with high service quality will these unknown wants and needs must then be
satisfy customer needs while is remained changed into new products and services. For this
economically competitive. Improving customer reason, CRM is a significant tool that will help to
service quality is one of the important achievements the companies to know and find the needs of their
of using CRM in each company. Based on Freeman customers, and be responsible about them [43-45].
& Seddon [6] the major reasons for these
improvements were; information access and capture D. Customer Segmentation
,increased personalized service , and being more Segmentation is in center the process by
responsive to customer needs. which objects or items are categorized or classified
into groups that split similar characteristics.
B. Increased Personalized Service (one to one Although these characteristics, can be one or more
service) attributes. It can be defined as a subdividing the
One-to-one service is about individuals popularity based on already known good
and personalization. Communicating with, selling, discriminator. In CRM , segmentation is used to
and servicing individuals by providing a particular categorize customers according to some similarity ,
and significant personal experience can be such as industry [46].
considered as personalize services. One-to-one There are many techniques for classifying
service is an ability and skill of understanding a and segmentation, but in this research we just want
customers needs and requirements by asking to focus on the benefits of segmentation for
questions and listening to their answers, in addition customers. Three ordinary group of segmentation
to observing their actions. variables in consumer markets are demographics,
Therefore, personalize customer service or psychographics and behavioral characteristics, like
one to one service provides companies to improve loyalty status or benefits required.
understanding and knowledge about the customers Segmentation or target marketing moved a
that the company cares about them and also to have companys attention to balancing products and
better knowledge about their customers' marketing efforts to be according customer needs.
preferences, requirements and wants. Firms need to describe slighter and smaller
According to Dwayne Ball [41] The rationale segments to find customer needs and preferences
makes common sense: personalization should [47]. Therefore, customers can be segmented to

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Nastaran Mohammadhossein, Dr.Nor Hidayati Zakaria / International Journal of Engineering
Research and Applications (IJERA) ISSN: 2248-9622 www.ijera.com
Vol. 2, Issue 6, November- December 2012, pp.1578-1586
groups based on ages, gender, demographic and etc. channels and incorporate it with other related
Though this, CRM will provide a capability of information [52].
dividing customers based on their needs. It will help
companies to categorize their customers according G. Time Saving
to their requirements into similar groups. CRM Faster and quicker time to market is
application will facilitate the process of significant to organizations looking for a
segmentation for companies. competitive edge. It is also critical for customers to
have a fast respond in sale process from the
E. Improve Customization of Marketing company and do not waste their time in buying
Customization of marketing means that, process or product delivery. Organizations can take
the company or organization adapt and change its benefit of CRM capabilities that simplify the
services or products based on presenting a unique development and deployment cycle to respond to
product or services for each customer. the customers. CRM systems bring in functionality
With the purpose of ensuring that customer needs and enhancements, more quickly, at lower cost and
and requirements are met Customization is used by enabling IT to be more responsive to business
the organization[48]. Firms can invest in needs.
information gaining about customers and then One of the useful benefits of using a CRM
customize their products as best as they can to system is reduction in using paper in the company
contest customer interests. or during interacts with customers. All processes
Moreover, communication can be that were done by forms and paperwork can be
customized with customers for improving the virtualized and mechanized within a CRM solution.
product or services for a specific customer. As the Not only this process can save time and money
ability of CRM to customization of the services, spent on paper, but it also makes a firm more
Customization of services and products is one of the environmentally-friendly with customers.
benefits of CRM for customers [49]. CRM systems can store and organize every
detail of each individual and customer and easily
F. Multi Channel Integration retrieval them. Sell person or employee can save the
Nowadays, the range of Customers channel time of themselves and customers for searching
choice is changed and therefore, a winning CRM about the information. In addition managers and
need to more efficiently manage customer marketers of the company can better analyze
relationships inside a multichannel environment. customer behaviors and trends in less time and then,
Technology, customer potential, and competitive perform more systematic research about the
forces, are more and more convincing local companys customer base and product
companies and firms to support customer service offerings. CRM will let companies to interact with
operations from some delivery channels as much of customers more frequently, by personalized
the customer knowledge occurs within this channel massage and communication way which can be
environment. produced rapidly and matched on a timely basis,
The multichannel integration development and finally they can better understand their
has a important responsibility in CRM since it takes customers and therefore look forward to their needs
the result of the business strategy and value-creation [53].
processes and change them into value adding
communications with customers [50]. Multi- H. Improve Customer Knowledge
channel integration can maintain all three phases of Tracking customer behavior to customer
CRM which are acquisition, extension and tastes and needs is a motivation for a firm to
retention. According to Goersch [51] multi- implement CRM systems. Firms can make and
channel customers are more loyal and spend more develop enhanced products and services through
than other customers. It is also valuable for retailers using this information [54].Since Customer
that connect in CRM. Multi-channel integration is knowledge is changing rapidly CRM applications
good for a transactional marketing approach, where help organizational improve their knowledge about
retailers are just interested in effective customer the customers by analyzing purchase behavior
achievement. Therefore, CRM strategy may needed through different channels of the customers
all three phases to be implemented, multi-channel customer [55]. CRM systems give a competitive
integration residue valuable although just one or advantage in improving firms collection of
two goals are obtained [51]. customer information to customize product and
Multichannel integration shows the point services according to customer needs.
of co creation of customer value in CRM. On the According to Sunil Mithas [55] Customer
other hand, a companys skill to perform relationship management applications help firms
multichannel integration successfully , is heavily gather and use customer knowledge through two
dependent on the organizations ability to collect mechanisms. First, CRM applications enable
and bring together customer information from all customer contact employees to record relevant

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Nastaran Mohammadhossein, Dr.Nor Hidayati Zakaria / International Journal of Engineering
Research and Applications (IJERA) ISSN: 2248-9622 www.ijera.com
Vol. 2, Issue 6, November- December 2012, pp.1578-1586
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Nastaran Mohammadhossein, Dr.Nor Hidayati Zakaria / International Journal of Engineering
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