CRM applications were developed to cope with the challenge of integrating information that has been scattered throughout the entire organization or across the supply chain. Customer interactions take place anytime and anywhere. Information collected at each customer interaction point has limited value unless integrated into the total system. CRM application is added to enterprise systems to address marketing opportunities in downstream supply chains.
A comprehensive CRM system includes three major components: (1) Operational CRM, (2) Analytical CRM, and (3) Collaborative CRM. Operational CRM can resolve problems related to sales force automation, customer service and support, and enterprise marketing automation. Analytical CRM systems provide intelligence based on the data collected and accumulated from all customer interaction points over time. Collaborative CRM systems assist the communication process between customers and organizational functions. Customers can choose any channel to communicate with service representatives via their preference channels, such as face to face, Internet, telephone, fax, mobile phone, and instant messaging (Richard, 2010).
Personalization occurs when a Web site can know enough about person’s likes and dislike that it can fashion offers that are more likely to appeal to that person. Many organization are now utilizing CRM to create customer rules and templates that marketers can use to personalize customer messages (Paige, 2009).
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