assignment 2 front sheet qualification btec level 5 hnd diploma in business

As a consequence, I would want to do study on this subject, which will assist organizations, particularly small businesses and entrepreneurs, in understanding how an effective customer r

ASSIGNMENT 2 FRONT SHEET

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Contents

Introduction 5

Literature review 5

Definition of Customer Relationship Management 5

Criteria to assess the effectiveness of CRM systems 6

Impacts of CRM on organizational performance 7

Definition of Organizational Reputation 9

Dimensions to measure Organizational Reputation 9

Methodology 11

Quantitative data 11

Methodology 11

Results 12

Reliability Test 12

Impact of CRM system on Organizational Reputation 13

Relationship between Customer Satisfaction and organizational reputation 14

Discussion and recommendation 17

Limitation 19

Conclusion 20

References 20

Introduction

Customer service has always been a crucial component of any company's operations Having positive client connections will assist the company in expanding its operations and in maintaining not just its place in the business, but also its reputation, which may attract the attention of consumers from rivals In order to become one of the most well-known companies, a firm must develop a customer relationship management system (CRM) that includes all of the information about each client and allows it to develop various strategies to approach different groups of consumers This will result in increased client satisfaction, which will assist the company in achieving the aforementioned goals However, in this 4.0, approaching 5.0 era, not many companies have an effective customer relationship management system, or they may underestimate the critical role that this system plays in their operations As a consequence, I would want to do study on this subject, which will assist organizations, particularly small businesses and entrepreneurs, in understanding how an effective customer relationship management system may assist them in building a good reputation Literature review

Definition of Customer Relationship Management

CRM needs an organizational strategy at all levels of the company and across all departments, including marketing, production, and customer service, which necessitates direct and indirect interaction with consumers, and therefore needs businesses to pay special attention (Abdavi, et al., 2018) While there is no universally accepted definition of CRM, there is agreement that it is concerned with the coordination of customer strategies and business procedures in order to achieve long-term goals associated with customer satisfaction and loyalty and to increase business effectiveness in a way that ensures long-term relationships with customers and great value for both parties (Pohludka & Štverková, 2019) CRM can be defined as a

method or mechanism of action for an organization to achieve its strategic goals by visualizing its management philosophy in terms of current and potential customer relationships (Siddiqi, et al., 2018) It can also be defined as a collection of practices, strategies, and techniques used by business organizations to collect, manage, broaden, and analyze customer information via a variety of channels CRM is defined by the researcher as a strategy aimed at establishing long-term relationships with customers through the use of mechanisms and techniques that aid in the collection, analysis, and utilization of customer information in order to increase consumer satisfaction, loyalty, retention, and also to enhance organizational reputation while lowering costs (Munyoro & Nyereyemhuka, 2019)

Criteria to assess the effectiveness of CRM systems

According to the studies of Al-Tai and Al-Amidi (2017), Msgoni et al (2018) and Hamid (2015), the researcher relied on four aspects to assess the variable CRM, which are as follows

Interaction with Customer

As a series of activities between the organization and the customer to acquire knowledge and transform it into products that meet customer needs and expectations (Hamid, 2015), organizations should prioritize a positive interaction with the customer through procedure simplification, clarity and transparency in transactions and contracts, as well as in the positive reception of customers and other interactive actions that have a positive impact on their relationship (Msgoni, et al., 2018)

Knowledge of Customer

Interaction with customers and the activation of knowledge management procedures across organizations are essential for organizations In order to analyze the needs, certain tools can be used to access the data required by the organization and then store, classify and sort it, such as the number of visits, times, customer characteristics, type of products, and other data that aids in customer categorization, and other data that assists in customer categorization (Al-Tai & al-Amidi, 2017) As a result, the organization's understanding of consumers allows it to recognize customer requirements, expectations, and aspirations and turn them into products and services in order to maintain current customers and attract new ones (Hamid, 2015)

Value of Customer

Customer added value is the goal of any organization, regardless of the industry or sector to which they belong This can be accomplished by providing outstanding services and developing strong customer relationships that are characterized by a high degree of credibility and trust (Msgoni, et al., 2018) As a result, customers are more likely to use services that add value to the organization's products, such as on-demand manufacturing and product follow-up webpages, increasing the likelihood that the organization will retain customers (Al-Tai & al-Amidi, 2017) The value of the customer is the difference between the value of the customer's acquisition of the product and the benefit of owning and using the product; therefore, the total value is equal to the sum of the product benefit, the benefit of after-sales service, the benefit of the

shape of the final product, and the benefit of personal benefit, in addition to the value of the customer (Hamid, 2015)

Satisfaction of Customer

Customers' happiness with an organization is related to its tangible performance if and only if the organization's tangible performance meets the expectations of the customer up to the point of satisfaction (Hamid, 2015) It is the pleasure of customers shown via gestures or motions such as a grin that creates a sense of contentment, and it is the key to the success and greatness of businesses Customer pleasure leads

to customer loyalty, which may be accomplished by hiring a specialized staff to manage customer interactions strategically, resulting in the development and maintenance of a long-term connection with customers (Msgoni, et al., 2018)

Impacts of CRM on organizational performance

Financial performance

In a journal article published in 2006, Ang and Buttle reported an increase in financial performance in a business that used CRM software using a variable satisfaction scale According to their sample businesses, the service industry is the dominating sector that benefits the most from CRM adoption compared to the other sectors Despite the fact that there are no statistically significant differences in satisfaction with the impact of CRM deployment on ROI (Return on Investment) between service and non-service businesses, both benefited from it According to the findings of the research, businesses that use intelligent CRM software may see an increase in their overall business performance In further detail, this research

discovered that almost 40% of businesses in Australia had previously used CRM software to assist their company, but that the software was not precisely the same for three different objectives, namely acquisition, retention, and development of customers Additionally, this research discovered that customer retention, when used as a CRM proxy, performs significantly better in terms of increasing firm value and company performance than the results of alternative strategies, such as margin improvement, customer acquisition cost reduction, as well as adjustments to the discount rate or cost of capital Following that, the findings demonstrate that, by properly using CRM software, a company's return on investment (ROI) as a measure of financial success may be increased CRM has the potential to have a major impact on financial success (Ang & Buttle, 2006)

Marketing performance

According to the findings of the journal of Namjoyan (2013), customer relationship management (CRM) effectively affects marketing performance substantially CRM implementation requires data collection for customer categorization in order to determine sales opportunities and sustain relationships with customers while also encouraging them to become brand ambassadors This approach takes into account data about consumer requirements and aspires to offer customers with more attractive products and services Those organizations who adopt and adhere to this model will be able to respond to the requirements and wants of consumers in the shortest amount of time while also providing the finest service to them CRM modeling initiatives are being undertaken to assist workers in understanding all of the requirements and desires of customers It is possible to utilize customer relationship management techniques to gather valuable customer information that can be used to enhance the performance of a company Because conventional marketing methods for improving client retention are expensive, best practices in customer relationship management (CRM) provide a potential alternative for firms seeking to address this important issue Periodic evaluation of a company's customer relationship management system (CRM) may assist managers

in tracking developments over time (Namjoyan, 2013) In addition to being used in the monitoring process, all three components of the CRM model may be used to meet training requirements by assisting human resource managers in the development of suitable training programs Its goal is to aid in the improvement of staff knowledge of the actions involved in adopting CRM, allowing top management to make the best business strategy decision possible Not only that, but the results of this research revealed that knowledge management has a substantial impact on marketing performance As a conclusion, CRM installation has shown that it has a substantial impact on marketing performance (Mohamad, 2014)

Operational performance

The author of a study - Acker - which examines customer relationship management and operational performance (2011) Companies do not need to develop a sophisticated and integrated CRM system from the outset; it is nevertheless helpful as a form of business intelligence, according to the experts Integrated CRM elements may have a major impact on operational performance for a long-term investment till it reached the maturity level (Acker, 2011)

According to Jain and Petel (2016)'s study, the effect of online CRM practices on a company's productivity and customer retention was examined As a consequence of this investigation, the connection between CRM and productivity as well as client retention has been discovered Customer Relationship Management (CRM)

is defined as the practice of analyzing and utilizing marketing databases, as well as the utilization of communication technologies, to determine corporate practices and methods, in order to maximize the lifetime value of each individual customer, according to this research Conventional communication processes are frequently delayed in time; however, electronic customer relationship management (e-CRM) allows organizations to always operate in real time, and more than that, interactions with customers are transparent, allowing organizations to draw conclusions about customer behavior and measure the success

of activities as a result of their efforts (Jain & Petel, 2016)

Definition of Organizational Reputation

Organizational Reputation (OR) is a collection of features and characteristics that have been assigned to the organization as a result of activities and actions that they have undertaken It represents a market perception of the organization's strategic character, as well as a cumulative judgment of members of the public over time about the organization, and it also represents a collective assessment of the organization's attractiveness by a variety of stakeholde (Esther & Nonyelum, 2017) Because reputation assessment is rsbased on direct stakeholder experiences with the organization, as well as any form of communication that provides information about the organization's actions in comparison to other leading companies, communication must be open on effective communication behaviors as well as effective relationship management that contributes to the organization's positive reputation, as well as effective relationship management that enhances the organization's positive reputation (Lee & Park, 2013) Organizational

Reputation (OR) is considered to be one of the most important intangible resources of an organization, where good reputation encourages trust and loyalty in the brand, as well as the development of long-lasting relationships with stakeholders, as well as the ability of the organization to attract qualified personnel, as reputation is formed over a long period of time and is dependent on the behavior of the organization's members and the quality of its products (Krzakiewicz & Cyfert, 2015)

Dimensions to measure Organizational Reputation

In their paper, Croucher et al (2019) highlighted the most important aspects of OR in three points: The organization should be well-known across the whole community; The organization's reputation should be

based on something particular, which means that the organization's qualities should be recognized by stakeholders, such as the reputation for delivering excellent services, being environmentally responsible, and generating money for investors, among other things; The public good, which relates to stakeholder evaluations of an organization's public reputation, both positive and bad, is defined as follows (Croucher, et al., 2019)

As a result, the researcher used three dimensions to evaluate the OR in this study, following the model developed by Sontaite and Kristensen (Sontaite & Kristensen, 2009)

Ingenuity and creativity

In addition to the introduction of new goods and services that are unfamiliar to consumers, or the addition

of new characteristics to existing goods and services, through the implementation of new ideas (Abdul Rahim, 2014) , innovation also refers to the introduction of new things in unconventional ways, such as through new technologies (Havina, 2009) Innovation may be described as the process of putting new ideas into action and applying them in a practical manner, as well as finding new methods to carry out various tasks, regardless of how tough the task may seem at the time (Bolton & Thompson, 2004)

(AL-Fatlawi, 2017) The achievement of a level of customer satisfaction as a consequence of the organization's provision of a service that meets the expectations, requirements, and wishes of its customers

is represented by the term "quality of service" (AL-Zalmi, 2016)

Social responsibility

A social duty is the obligation that an organization has towards its society and other stakeholders, which it bears via the choices and actions it takes in order to accomplish its objectives (AL-Zalmi, 2016) Through the implementation of activities that go beyond compliance with the law and respond to changing expectations

and needs of society, organizations and society are entering into an implicit social contract As a result, organizations must include this in their overall strategies and values, as well as work to achieve the greatest possible balance among stakeholders (Nasser & Abdul-Hussain, 2018) A person's social duty may be divided into four categories: economic, legal, moral, and voluntary (humanitarian) obligation (Dora, et al., 2018)

Methodology

Quantitative data

Quantitative research is employed Its primary purpose is to create numerical data or data that may be used

to develop statistics It uses quantifiable data to generate facts and identify patterns in study Quantitative data collecting methods include surveys (online, print, mobile, and kiosk surveys, among others), face-to-face interviews, phone interviews, longitudinal studies, website interceptors, online polls, and systematic observations After determining that the marketer's research questions will generate qualitative data, the next step is to choose the appropriate qualitative approach The methodology chosen will take into account the study's aim, the researcher's role, the data obtained, the data processing approach, and how the results will be presented (Kabir, 2016)

depends on the study's objectives, and those who are asked to participate may accept or refuse Standardized procedures collect data, enabling each participant to complete the survey according to the research's goals An additional need for the author of the survey is to keep survey participants' personal information private, and to summarize it anonymously (Ponto, 2015)

The goal of this report would be to send a minimum of 100 participants a survey through social networking sites such as Facebook and Instagram, from which data would be collected for analysis Additionally, I will be responsible for maintaining the strictest secrecy about the information and data gathered throughout the survey