Organisational factors: CRM software solutions for business

CRM software solutions for business

In the past, the prevailing wisdom was that business success simply meant gaining and keeping customers. But the world has changed, with structural innovations, increasingly demanding and differentiated consumers and previously unforeseen competition creating a new paradigm of long-term relationship retention.

Businesses are looking to CRM software solutions to cope with these changes. The importance of customer relationship management (CRM) solutions has increased thanks to advances in cloud technology, reduced customer loyalty and increased competition, and the need to retain knowledge about consumers.

New cloud solutions allow organisations to offer more customised products and services to these customers. But other factors are also at play that lead to a reliance on IT, including:

• globalisation
• deregulation
• the development of information technology
• short product life cycles
• an awareness of the connection between customer retention and profitability.

Cloud based CRM solutions have many advantages for organisations. Cloud based CRM solutions help:

• increase sales
• gain a greater competitive advantage
• increase costumer loyalty and satisfaction
• generate new knowledge about customers
• improve customer relationships
• help with the acquisition of new customers
• encourage existing customers to purchase
• maintain good relations with and increase value for customers
• improve the organisation’s image.

But there can be downsides. CRM software solutions for business can have negative effects on the operations of organisation. The most common causes are due to:

• inadequate measurement systems
• low support from the organisation’s management
• lack of understanding of the CRM solutions’ benefits
• low quality and range of data
• exceeding the planned cost
• lack of skills in setting up and using CRM solutions
• lack of understanding of CRM solutions.

However, many of the issues with CRM solutions are organisational rather than technical in nature. For example, changes in the organisation can affect the usefulness of CRM tools.


Learn how a CRM system can help you:
Speak to a Datanova Digital Business Architect on 1300 552 166.

Why businesses use CRM solutions

An effective CRM solution helps a business capture, analyse and share knowledge about and with customers with the aim of improving customer service. Software applications capture a business’s interactions with the customer and this data is analysed. This data helps improve customer relations.

But for the CRM to be effective there are a few important factors inside and outside the organisation that must be taken into account.

Research shows that the organisational factors of a business (which includes its management, structures and employees) have a huge effect on the performance of any CRM solutions the organisation implements. There are many factors that can affect how a CRM solution will work within an organisation, including an organisation’s orientation in the following areas:

Christian Krauter
Founder at Datanova
The Founder of Datanova, a visionary and digital business solution architect with 24 years experience in the rapidly expanding fields of information management systems, data governance and customer focused-strategy. As Director of Datanova, he leads a great team focused on cloud based services and solutions improving a clients business result through enabling a competitive advantage from all their information assets to drive top business imperatives – Christian Krauter, is a recognised expert on analytical applications, CMS, CRM, focused on improving client’s business results through cloud development, information management and data governance.
Christian Krauter on EmailChristian Krauter on FacebookChristian Krauter on GoogleChristian Krauter on LinkedinChristian Krauter on PinterestChristian Krauter on TwitterChristian Krauter on Wordpress