On the design concepts for CRM system
| Pages | 324-331 |
| DOI | https://doi.org/10.1108/02635570310477370 |
| Date | 01 July 2003 |
| Published date | 01 July 2003 |
| Author | Jeong Yong Ahn,Seok Ki Kim,Kyung Soo Han |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
On the design concepts for CRM system
Jeong Yong Ahn
Department of Computer Science and Informatics, Seonan University,
Namwon, Korea
Seok Ki Kim
Division of Mathematics and Statistical Informatics,
Chonbuk National University, Chonju, Korea
Kyung Soo Han
Division of Mathematics and Statistical Informatics,
Chonbuk National University, Chonju, Korea
1. Introduction
The World Wide Web (WWW, Web) not only
contains a vast amount of useful
information but also provides a powerful
infrastructure for communication and
information sharing. Many activities
including education and research are
getting on the Web and many organizations
rely on the Web for competitive advantage
(Jemmeson, 1997). Nowadays, the Web is
continuing to expand at an amazing rate as
a medium for conducting business in
addition to disseminating information.
Cheung (1998) noted that the Web is used for
many diversified business purposes
including direct sales, advertisement,
customer support, etc. and the astonishing
growth of Web users is clear evidence of
this. Pitkow and Kehoe (1996) mentioned
that the number of Web users is increasing
remarkably, too.
With the growth of Web users, the Web is
producing large volumes of data (Buchner
et al., 1999) and data analysis to extract
information from the data is considered as a
significant topic. Recently, techniques such
as data warehousing, data mining, and online
analytical processing (OLAP) are steadily
being studied, and Web data mining to
extract information from Web data has
become a popular research area (Cooley,
2000; Pei et al., 2000).
Advances in information technology are
changing the research surrounding the
business and market ing fields, and a
considerable number of studies ± for
example, Peters and Saidin (2000), Stone and
Good (2001) ± have been conducted on the use
of information technology. A focusing topic
in the fields is electronic customer
relationship man agement (CRM). Bose
(2002) noted, CRM involves acquisition,
analysis and use of knowledge about
customers in order to sell more goods or
services and to do it m ore efficiently. In
other words, CRM is a proces s designed to
grasp features of customers and apply those
features to marke ting activities. It d iffers
from classical marketing in the point that it
uses ``customer centric thinking'' in
marketing. The pri mary reasons for the
emergence of CRM are the changes in the
marketing environment and advances in
Web technology.
In this study, we provide a review of CRM
and Web data sources used in online
marketing. Additionally, we propose some
design concepts for the development of an
effective CRM system.
2. Changes in the marketing
environment
Recently, information technology has
stimulated several innovations in the
business and marketing fields. Burke et al.
(1999) discussed the effect of information
technology in management and marketing
fields, and they emphasize the
re-arrangement of a new marketing
paradigm that takes advantage of Web
technology.
Before 1990, the main concern of many
companies was focused on performing
business transactions with customers, and
the companies had strategies of sales
promotion to address those basic concerns
effectively. After 1990, however, many
companies began focusing their concerns on
the aspect of how to maintain positive
relationships with customers, how to raise
customers' loyalty, and how to enlarge
customer life value (Wayland and Cole, 1997).
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[ 324 ]
Industrial Management &
Data Systems
103/5 [2003] 324-331
#MCB UP Limited
[ISSN 0263-5577]
[DOI 10.1108/02635570310477370]
Keywords
Customers, Relationship
marketing, Management, Design,
Information technology
Abstract
In the past few years, information
technology has stimulated several
innovations in the business and
marketing fields, and advances in
the technology are changing the
research surrounding those fields.
Recently, focusing topics in the
management and marketing field
are electronic customer
relationship management (CRM)
and the practical use of marketing
data and information technology.
The goal of this article is not to
provide an all-inclusive tutorial on
CRM but rather to provide
fundamental concepts behind
CRM and some aspects of the
system development process. This
article provides a comprehensive
review of CRM and marketing data
sources, and consider some
design concepts for creating an
effective CRM system from the
viewpoint of practical use of the
data sources.
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