Innovations in customer relationship management systems and their impact on business processes

Goals of the CRM systems. Functions of the customer relationship management. Artificial intelligence and cloud technologies in the customer relationship systems. The development of the customer relationship management systems. Chat bots integration.

Рубрика Менеджмент и трудовые отношения
Вид дипломная работа
Язык английский
Дата добавления 13.07.2020
Размер файла 3,9 M

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The research of the transcriptions of the collected interview has given the authors of the research paper the following insights. First of all, among all the companies that have been reviewed during the process of collecting the qualitative part of the primary data, the firms that operate in the segment of B2B use the customer relationship management systems less often than those companies that serve the segment of B2C. Being more specific, the amount of the business owners or representatives from the B2B segment that have answer the questions of the interview is 4, among them only one business is using a customer relationship management system, and what is important, besides the B2B segment this company also operates on the B2C market and serves regular customers alongside with the businesses and companies. This company is an online shop that sells antiseptic agents, medical and hygiene masks and thermometers. The company operates in the Instagram social network and has its own website. This business has existed for not a very long time and has incepted the customer relationship management system into its marketing process just a few days before its owner was interviewed by the authors of this paper in terms of the customer relationship management innovations research.

Among the other insights that the authors of this research paper have come to is the list of innovations that are used in the customer relationship management systems that has been mentioned by the respondents of the 16 in-depth interviews collected during this stage. It turned out that the innovations that were claimed as used by the interviewed business owners and representatives are mostly the ones that have been researched by the authors of this paper during the stage of collecting the secondary data in the literature review. Among these innovations are an artificial intelligence based on the technology of machine learning, the cloud based technologies integrated into the customer relationship management system, integration of the customer relationship management systems with the Internet of things, integration with the chat bots, deep personalization technique and a customer relationship management system with a version for a mobile platform. The innovations from this list have been mentioned in the following order: a mobile version of a customer relationship management system was mentioned by 11 respondents out of 16; a cloud based customer relationship management system and artificial intelligence share the second place with the 9 mentions out of 16 among the respondent of the interview; on the third place comes the deep personalization technology, which was stated to be used by 8 interviewees; then comes the integration of the chat bots with 5 mentions; the last innovation which can be found in both review of the literature secondary data and the transcriptions of the interviews is the Internet of things integration, which was mentioned only by 1 respondent out of 16. Despite the fact that the innovation of the Internet of things integration was mentioned only once in the whole set of the interviews, it is still included into the questionnaire for the quantitative part of the research due to the fact that it was mentioned in the scientific literature that the authors have reviewed. The possible explanation to the small amount of mentions by the existing Russian businesses can be the fact that this technology is quite new compared to the others and, therefore, it is not yet used widely; another possible option is that the integration of the Internet of things into the customer relationship management systems is only useful for the specific types of products and many other companies have no need to implement this technology into their customer relationship management system.

It is worth saying that the innovations from the list of those that were gathered as a secondary data during the literature review are not the only ones that were mentioned by the interviewed business owners or representatives. One of the respondents has also mentioned that their business is using a blockchain based customer relationship management system as an answer to the question about the innovations that they have implemented. Despite the advantages of this innovation in terms of security, the researchers have not included this point into the quantitative questionnaire because of the irrelevance of in in a global scale: in was mentioned only by one respondent and, unlike the Internet of things integration innovation, the blockchain based customer relationship management systems were not mentioned in the reviewed scientific literature.

Therefore, the gathered list of 6 innovations (machine learning based artificial intelligence, cloud based technologies, deep personalization, chat bots integration and the Internet of things integration) was fully included into the quantitative part of the research for the further analyses. It is described in detail in the next paragraph.

As for the evaluation of the innovations mentioned by the respondents of the in-depth interviews, all of them are satisfied with their customer relationship management solutions and specifically the innovations that are implemented into the customer relationship management systems that they are using. No negative responses are given. However, the format of a free form interview does not suggest the strict evaluation of each particular innovation, and this is the problem which the quantitative part of the results analysis is meant to solve.

Finally, all of the respondents for the in-depth interviews were offered to pick the most important innovations from the history of the customer relationship management systems that affect the most on the modern customer relationship management systems according to their personal opinion. Here is this list of innovations:

1. Cash machine

2. System for evaluating sales managers

3. Notebook with a schedule and clients list

4. Rolodex rotating file system

5. Computerization

6. Automated system to control the stages of transactions and monitor their effectiveness

7. Storage the information about the clients

8. Enterprise Resource Planning system

9. Integration with MS Office

10. Open source system

11. Social media integration

Out of 16 interviewees that participated in this stage of gathering the primary qualitative data, 15 have chosen the innovation of computerization as the one that has its effect on the modern customer relationship management systems solutions. 12 respondents have decided that the integration of social media also affects the situation in the modern industry of customer relationship management; and the same amount of the interviewees have mentioned the storage of the information about the clients. The third place is shared by the Microsoft Office integration and the cash machine with 9 mentions by the participants of the in-depth interviews level of the primary data collection. The last place is occupied by the innovation of the automated system to control the stages of transactions and monitor their effectiveness; only 3 interview respondents have stated this point as the one that has its effect on the modern customer relationship management systems.

As it can be seen, the Russian entrepreneurs and the business owners or representatives that have participated in the stage of collecting the qualitative part of the primary data for this research consider the innovation of computerization the most important one in terms of its affection on the customer relationship management systems that are used nowadays. This corresponds with one of the hypotheses that were stated by the authors of this research, which claimed that computerization is the basis of the modern customer relationship management systems.

The authors' task was not only to answer research questions and test hypotheses, but also to analyze how specific innovations affect business processes.

The first result obtained is the percentage of businesses that use CRM systems. The data is as follows: 130 respondents use CRM systems which is 62.5% of the total number of responses while 16 respondents said that they do not know whether their company has a CRM system, which is a share of 7.7% of the total number. This clearly shows that systems for controlling customer relations are quite popular in Russia. However, there is also a lack of understanding of the specifics of such systems among a small number of respondents. This is why their responses are not taken into account in the future.

The second result allows the Authors to understand what type of CRM system respondents use. The choice was given 2 options, third-party software or your own system. As it turned out, most enterprises use a system developed by a third-party organization and running on standard algorithms in a number of companies. Thus, the shares of 62.3% and 32.3% were obtained. it is also important to note that 5.4% of the respondents could not answer this question, so the authors decided not to consider further responses from these respondents due to a lack of understanding of the topic under study.

Then, the Researchers calculated the popularity of each of the studied innovations among respondents. According to the results, the most popular innovation in the CRM system is deep personalization, the share of use of which reaches 88.5%. Cloud Technologies are in second place, with 82.3% of businesses using them. Chatbots occupy the third position with a share of 74.6%. The next one was art-Based Intelligence, which is in demand in 66.2% of organizations. The mobile version of the CRM system is used only by 43.1% of respondents. The least popular implementation of the Internet of things in the customer relationship management process is used in only 15.4% of organizations. It was extremely important for the authors to learn about the popularity and relevance of each innovation in the CRM system of real companies. The findings will be reflected in the hypothesis section.

Researchers have finally begun to analyze the direct impact of innovation on various business indicators through Mean analysis.

The overall impact on business of all innovations turned out to be quite insignificant, but at the same time positive. The overall average score is 3.66.

Then the average values of the impact of innovations on all parameters were calculated. Artificial intelligence shows the highest indicators according to the results of the survey which in General reaches 4.1 points. This directly answers the third research question, but this will be described later in the hypotheses section. Chatbots are the second most influential business with an average score of 3.8%. Integration of the Internet of things into a CRM system just like cloud technologies is gaining an overall score of 3.4 which shows the low efficiency of innovation. deep personalization as the most popular and sought-after innovation scores 3.8 points, which according to the authors is why it is so popular. The mobile version of the CRM system receives a rating of 3.6 out of 5 from respondents.

The authors were also interested in which business parameters innovations affect the most and which remain almost unchanged. As a result of calculations, it became known that the implementation of the studied innovations has the greatest impact on the process of communication with the client. Usability and profitability share second place. The introduction of innovations in CRM has a minimal impact on business costs. While customer tracking becomes more efficient.

The most interesting part for researchers, of course, is the calculation of the impact of a particular innovation on a particular aspect of the company's activity. The table below illustrates where the impact is most noticeable and where the business gets minor advantages from implementing innovations in the CRM system.

The evaluation of the innovations by each parameter score

USE

COUNT

COM

COST

PROF

AI

3,91

4,27

4,26

3,48

4,52

CB

3,52

3,20

4,26

4,10

4,01

IT

3,55

3,30

3,55

3,20

3,25

DP

3,29

4,31

4,12

3,02

4,03

CT

4,07

3,14

3,52

3,15

2,91

MV

4,27

3,50

3,89

2,77

3,50

From the data presented in the table, we can conclude that no innovation applied in the customer relationship management system has a strong negative effect on any parameter. However, the impact of the Mobile version of CRM on costs can be called negative, which is likely to increase due to the cost of using this innovation. It is also noted that cloud technologies have a slightly negative impact on profits, but the effect is not so significant that it has some serious problem with this innovation.

The most positive impact can be seen in an artificial intelligence, which has a very positive effect on customer tracking, communication efficiency, and profitability. Chatbots also perform very well in communication with clients and are slightly less healthy in terms of costs and profitability. Deep personalization shows itself well when accounting for customers and has a positive impact on communication and profitability. And cloud technologies and, to a greater extent, mobile versions have proved to be very convenient to use.

All these results are useful for businesses. They certainly gave the authors an opportunity to answer the research questions and prove or disprove hypotheses.

5.2 Hypotheses testing and answering the research questions

One of the general aims of conducting the research using the represented methods of gathering the qualitative and quantitative data and analysing it by the means that are mentioned in the paragraphs above is proving or disproving the hypotheses that the authors of this research paper came to during the process of the topic of the research statement as the possible answers for the research questions. Here is the list of the research questions that were stated by the authors of this research:

1. Which innovations from the history of customer relationship management are the most important part of the modern customer relationship management systems?

2. What innovations are the most demanded among the users of the customer relationship management systems?

3. What innovations in the customer relationship management systems have the most positive effect on business processes?

4. What innovations can have negative effects on business processes if any?

As it has been said, the list of the research questions is tightly connected with the hypotheses, which are basically the answers for the research questions that are anticipated by the authors of the research. The list of the hypotheses is represented below:

1. The innovation from the history that forms a basis of modern customer relationship management systems is computerization.

2. An implementation of artificial intelligence and chatbots into the customer relationship management systems has the most positive effect on the process of communication with the customers.

3. The most demanded innovation in Customer Relationship Management is artificial intelligence based on machine learning.

4. There are innovations in the customer relationship management systems that have negative effects on business processes.

5. Integration of a mobile version of a customer relationship management system has the most negative impact on costs of using the system among all researched innovations.

The first hypothesis claims that the innovation from the history of the customer relationship management systems that is the basis for the modern customer relationship management systems is computerization. The analysis for this hypothesis was conducted during the stage of gathering the secondary data from the literature review part of the theoretical background and the stage of collecting the qualitative part of primary data in the form of the in-depth interviews with the Russian owners of business and entrepreneurs and the representatives of businesses. Both stages of the data collection and analysis have confirmed that it is computerization which is the innovation from the history of the customer relationship management systems that has the most significant effect on the modern customer relationship management systems. The hypothesis can be considered as a confirmed one.

The second hypothesis States that the use of artificial intelligence and chatbots increases the effectiveness of communication with clients the most. The authors confirm this hypothesis by the fact that as a result of quantitative analysis, respondents noted that these two innovations have the most positive impact on communication with customers. At the same time, artificial intelligence has performed extremely well in increasing business profitability. The authors believe that there is a link between these indicators.

The third hypothesis States that the most popular innovation in modern customer relationship management systems is Artificial intelligence. During the analysis, artificial Intelligence has had a fairly positive impact on many business processes, but despite this, It is only the fourth most popular and popular among all the innovations studied. This innovation is used by 86 respondents, which is 66% of the total number of respondents. The hypothesis is disproved.

The fourth and fifth hypotheses concern the negative impact of innovations in CRM systems. We can distinguish 2 innovations that are not shown in the best way on costs and profitability. So cloud technologies slightly negatively affect business profitability, while the use of the mobile version negatively affects costs, as the authors suspected when putting forward the fifth hypothesis. So we can say that both of these hypotheses are confirmed.

Answering the research questions is another important goal that the collecting and analysing both primary and secondary and qualitative and quantitative data is aimed at.

The first research question corresponds with the first hypothesis that the authors have stated. The question is “which innovations from the history of customer relationship management are the most important part of the modern customer relationship management systems?” Analysing the related hypothesis, the authors of this research paper have come to a conclusion that it is the innovation of computerization that forms the basis of the modern customer relationship management systems, which is also the answer for the first research question of this research paper.

The second research question is “What innovations are the most demanded among the users of the customer relationship management systems?” Authors answers this by top of innovations by popularity among the customer relationship management system users:

1. Deep Personalization

2. Cloud technologies

3. Chat Bots

4. Artificial intelligence

5. Mobile version of CRM

6. Internet things

The third research question “What innovations in the customer relationship management systems have the most positive effect on business processes?” is also fully answered by hypothesis proving. And the most positive impact the businesses could get by implementing deep personalization to their customer relationship management systems.

For answering the last Research question authors analyzed which innovation could have negative effects on business processes. And it was found that implementing cloud technologies and mobile versions of the CRM can be harmful for costs and profits.

6. Conclusion

In the modern world business plays a very important role not only in the economic sphere, but in the lives of people as well. The consumers communicate with the businesses every day and they are interested in this communication to be as comfortable and pleasant for them as possible. In turn, the business is interested in the relationships with the customers due to the fact that the correct communication with the customers brings business profit.

This is why a wide variety of modern businesses is using the customer relationship management systems. This software allows the companies to collect and analyze the data about the business' clients in order to communicate with them better and personalize the business relationship to each particular consumer. In order to make the communication with the customer and the usage of the customer relationship management system more convenient and beneficial, the modern customer relationship management systems are incepted with the innovational techniques and technologies that improve the systems, making them influence positively on the business processes.

The authors of this research aimed to cover the gap in the existing scientific literature about the measurement of influence of the innovations to the business processes. There are plenty of scientific articles that cover the topic of the customer relationship management systems and the innovations that can be implemented into these customer relationship management systems, but none of the found researches have explained the influence of these innovations in the customer relationship management on the business processes and their interdependence. This is the gap that the authors of the research paper covered.

In order to achieve the goals and answer the research questions and prove or disprove the hypotheses, the researches have decided to collect both secondary and primary data on the topic of the customer relationship management systems innovations. The stage of collecting the secondary data is referred to the review of the scientific literature related to the topic of this research paper. The primary data collection, in turn, is divided into two parts. The first part is qualitative and implies a conduction of a set of in-depth interviews with the owners or representatives of Russian business from different spheres.

The result of this stage is a set of innovations that have been mentioned by the entrepreneurs as the ones that they use in their customer relationship management systems. This set of innovations is included into the second part of gathering the primary data, which is a quantitative questionnaire. The sample for this stage are the Russian businessmen and entrepreneurs that can be found in the social media business chats, such as VK, Facebook, Telegram, WhatsApp, etc. The respondents have evaluated the customer relationship management systems innovations' influence on their business processes. The authors obtained data that can be trusted, and after analyzing it, they obtained useful statistics for answering research questions and testing hypotheses.

As a result, all the research questions have been successfully answered and all hypotheses except the third one have been proved.

6.1 Contribution of the results

The usefulness of this research can be related to different spheres. First of all, it can help the small and medium and even large businesses to improve their customer relationship management systems with the innovations that can bring only positive influence to the business processes. The businesses will be able to communicate with their customers in a more efficient way and improve their marketing strategies based on the impact that the customer relationship management systems innovations can bring, which, in turn, reflects on the business' profitability.

Another group that can benefit from the results of this research is the developers of the third party customer relationship management systems. They sell their digital product to the businesses that are incapable of developing their own customer relationship management system or do not see the need to do it. These companies can incept the most recent and effective innovations into their software product to make it more competitive and to increase the satisfaction of the business clients.

Thirdly, this research covers a gap that exists in scientific literature. This gap implies a lack of secondary data about the influence of the innovations in the customer relationship management systems on the business processes. This research successfully covers this deficiency.

As it can be noticed, this research paper can be useful in many spheres, from the business to the scientific field.

6.2 Limitations

However, the research has several limitations. First of all, the sphere of the customer relationship management systems, just like the other software products, is very dynamic and evolves and changes very rapidly. This means that with time the results of this research might become incomplete due to the fact that newer innovations can appear and occupy their niche in the industry of customer relationship management systems. Though, the authors do not suppose that the results of this research can become completely irrelevant, because the majority of the innovations from the history of the customer relationship management systems have entrenched and occupied their niche in customer relationship management, becoming a significant part of modern customer relationship management systems. This can be seen from the secondary data analysis in this research and by the answers of the interviewees during the process of collecting the responses for the qualitative primary data.

Another important limitation of this research that is worth mentioning is the fact that the sample for both in-depth interviews and the quantitative questionnaire are limited by the personal contacts of the authors and the participants of the business chats in social media. Talking about the interviews, the problem here is a very small size of sample, which can be a problem in terms of the relevance of the responses. As for the questionnaire, the participants of the business chat are not a very reliable source of data because the authors cannot personally control those who complete a survey.

6.3 Future research

Talking about the opportunities for future research, the first thing that is worth mentioning is related to the first limitation of this research. As the new innovations in the sphere of the customer relationship management systems appear, their influence on the business processes can be studied just like this research studies the effects of the innovations that already exist.

Secondly, this research has only focused on the business owners and entrepreneurs from Russia. This opens an opportunity to conduct a similar research by gathering the interviewees and questionnaire respondents from the other countries of the world. I is also possible to compare the results of the research of the influence of the innovations in the customer relationship management systems in the business processes in other countries with the data of this research to find out whether there is any difference between the ways of using the customer relationship management systems innovations in Russia and the other parts of the world.

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Appendixes

1. In-depth interview questions pattern (Russian)

- Чем занимается ваш бизнес?

- Ваш бизнес оперирует в B2C или в B2B-сегменте?

- Ваш бизнес использует CRM-систему для учета и коммуникации с клиентами?

- Считаете ли вы необходимым использование бизнесом CRM-систем?

- В CRM-системы периодически внедряют различные инновации, как с точки зрения самого управления взаимоотношений с клиентами, так и с технической точки зрения. Есть ли в вашей системе подобные инновации?

- Довольны ли вы своей CRM-системой? Есть ли у вас какие-нибудь идеи и пожелания к ее функционалу?

- Вот список инноваций, которые внедрялись в CRM-системы на протяжении из истории:

1. Кассовый аппарат

2. Система оценивания продаж

3. Расписание и список клиентов

4. Rolodex файловая система

5. Компьютеризация

6. Автоматическая система контроля уровней транзакций и мониторинга их эффективности

7. Хранилище информации о клиентах

8. ERP-система

9. Интеграция с Microsoft Office

10. Системы с открытым исходным кодом

11. Интеграция с социальными сетями

Как вы считаете, какие из этих инноваций оказали наибольшее влияние на современные CRM-системы?

2. Quantitative questionnaire example (Russian)

3. Usage of CRM graph

4. Ownage of external CRM graph

5. Popularity of innovations graph

6. Average score of each innovations graph

7. Average score for each parameter graph

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