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FEDERAL STATE EDUCATIONAL INSTITUTION

OF HIGHER EDUCATION NATIONAL RESEARCH UNIVERSITY

HIGHER SCHOOL OF ECONOMICS

Department of Management

Bachelor's thesis

In the field 38.03.02 `Management'

IMPACT OF CRM-SYSTEM ON CUSTOMER SATISFACTION USING THE EXAMPLE OF ORGKHIM

Ledneva Diana Vladimirovna

Academic supervisor

I.V.Arzhenovskiy

Candidate of Economics, docent

Nizhny Novgorod, 2020



Contents

Introduction

1. Theoretical background of CRM concept

1.1 Definition of CRM, types and software history

1.2 Types and main components of CRM

1.3 CRM market trends

1.4 Effect on customer satisfaction

Conclusions of 1 Chapter

2. The company and existing CRM system

2.1 Company description and key financial figures

2.2 Analysis of Orgkhim main market

2.3 Implementation of CRM in company

Conclusions of 2 Chapter

3. Analysis of impact of CRM system on customer satisfaction

3.1 Study of previous customer satisfaction analyses in company

3.2 Estimation of CRM usage and customer satisfaction

3.3 Regression analysis

Conclusions of Chapter 3

Conclusion

References

Appendix



Introduction

financial company system customer

Significant changes in how we sell have occurred over the past 30 years, as a result of technological advances and changing customer expectations. Technology is transforming businesses, creating an impact on the sales industry and the sales process. From prospecting to shutting, the present versatile, social, enormous information, and cloud advancements are updating the business procedure consistently. Customer Relationship Management (CRM) is a concept for companies to manage their interactions with customers and sales prospects.

The relevance of the topic owing to several criterions:

1. Prior to the implementation of the CRM system, sales analytics were built manually and often charts and graphs for all business processes reached the head of the company at a time when they had already lost relevance. There was a lack of united standards for the work of employees and a large number of managerial errors when manually transferring contacts to electronic form, which led to loss and customer dissatisfaction. Although CRM systems have recently begun to be actively used by companies, they have already been able to solve this range of problems, which indeed determines the actuality of the chosen topic.

2. In the current economic situation, toughening competition and growing demands to improve the quality of service on the part of customers, CRM systems are able to maintain competitive advantages, being effective management systems for interacting with clients.

3. Lack of quality sources of information that assist the company to understand if there is a relationship between the CRM system and the level of customer satisfaction.

4. Applied effect on the output and usefulness of research results for marketers working in small and medium-sized businesses.

Several studies conclude that the aim of CRM systems is to increase salesperson efficiency and effectiveness (Gohmann et al., 2005); (Anderson et al., 2007). Other research papers (Rapp, Agnihotri, & Forbes, 2008); (Ahearne, Rapp, & Mathieu, 2008) studied the relationship between technology CRM usage by salespeople and their behaviour and how this affected their sales performance and concluded that, CRM usage does indeed increase the salesperson efficiency and effectiveness. CRM tools can increase salesperson performance but it is not clear if they also increase customer satisfaction. Customer satisfaction is important and many large and medium-sized companies regularly measure it.

This research paper aims to address the following research questions: How do the customers perceive the service and product quality of Orgkhim company in B2B (business to business) market? What actions do the employees at the Holding undertake with their CRM system to improve customer satisfaction?

The ultimate goal of the current study is to discover how CRM usage by the employees in Orgkhim Biochemical Holding affect their customer's satisfaction with the service and product quality level.

The specific objectives of expanding research with regard to the different scopes of CRM usage must necessary be those of:

· examine the benefits of Customer Relationship Management and implementation in particular company;

· study main CRM market trends and how they correlate with customers;

· analyze how to estimate service quality and which models take into account;

· research current company key figures and previous surveys connected with customer satisfaction

· measure CRM usage by employees using surveys;

· explain the results of how customers of the company estimate service and product quality using SERVQUAL model (service quality model)

· perform regression analysis to define correlation between customer satisfaction and the CRM actions

· prepare recommendations for further operation with CRM system and what can be improved

It is assumed that the study is able to concretize whether there is an empirical evidence of a direct relationship between CRM usage by salespersons and customer satisfaction with the quality of products and after-sales services using data collected from Orgkhim company. The result is expected to be with positive or neutral correlation. Moreover, it is anticipated that the set of recommendations which are planned to be developed after current analysis will serve as the basis for increasing profit of using CRM system.

The subject matter of the study is Orgkhim Biochemical Holding Nizhny Novgorod.

The scope of the study is CRM system in Orgkhim company.

The current study consists of following research methods: an analysis of current position of the company, taking into account the occupied place on the market of rubber process oils: evaluation of Orgkhim CRM system and previous surveys for measuring customer satisfaction. Two surveys are conducted to estimate how efficiently employees apply system and SERVQUAL model to measure customer satisfaction and opinion on quality of products and service in the company. Results of descriptive statistics are processed through the statistical program SPSS and are used for regression analysis.

The output of this study may be of great interest for practice-oriented B2B companies that only have been starting implementation of CRM and need to get competent knowledge about how it influences customer satisfaction to prevent some mistakes in the future. Current study makes a significant contribution to the professional knowledge and practice of marketing, leading the way for comparative studies which can be done in the future to look at the differences between different organizations and regions and see what CRM practices affect customer satisfaction.

The paper consists of 3 chapters: the first provides with information about theoretical background of CRM, which includes history, types and components as well as CRM market, its trends and impact on customer satisfaction by the example of famous frameworks and best practices. The second chapter represents the company and its main financial figures, describing current CRM system and its implementation in the company. The third chapter introduces the answer on research question of the study, using surveys, regression analysis results and main recommendations. The number of pages is 64. The number of literature sources which was used in this paper is around 50.



1. Theoretical background of CRM concept

1.1 Definition of CRM, types and software history

Customer Relationship Management (CRM) is a process of building a relationship between companies and customers by increasing the quality of customers' satisfaction. It can be done by identifying customers' perception over a certain kind of product, organization, or service which is offered through seller, trader, and supporting services that make the customers loyal. Dychй, Jill. The CRM Handbook: A Business Guide to Customer Relationship Management. Addison-Wesley Professional, 2001

This concept is important because it is much more expensive to attract new customers than to keep them. CRM is the process whereby a company builds long-term relationships with current customers so that both seller and buyer work towards a common set of specific goals. The primary goal of CRM is to let companies achieve a mutual loyalty.

All companies are affected by competition. One of the many questions we can ask regarding businesses is why they use CRM. Actually, it allows them to realize a precise empowerment profile under tremendous competitive pressures. Kumar, V., & Reinartz, W. Customer Relationship Management: concept, strategy, and tools. Berlin: Springer Berlin, 2012 Internet's web tools began to be used for CRM, which then became a business strategy that consists of processes and technologies that enhance customer relationships in order to increase customer loyalty. Firms today realize that customer loyalty is a competitive requirement which can potentially be fostered via relationship management.

The relationship between the customer and the company needs to be very strong therefore firms need to gain an understanding of the market structure. Focusing on advertising and promotions only is not enough. The focus must be on developing long-term customer relationships, rather than focusing on low prices, technologies or promotions. These are aspects that are easy to change fast. On the other hand, lasting relationships with loyal customers can take a long time to create. Close connections give a lift to the additional worth. The additional value makes client loyalty. Asgarpour, Rasoul, et al. “A Review on Customer Loyalty as a Main Goal of Customer Relationship Management.” Jurnal Teknologi, vol. 64, no. 3, 2013, doi:10.11113/jt.v64.2279

CRM is dependent on: Empowerment, Personalization, Partnership and Trust. Goldenberg, Barton J. The Definitive Guide to Social CRM: Maximizing Customer Relationships with Social Media to Gain Market Insights, Customers, and Profits. Pearson, 2015. Empowerment alludes to the procedure firms receive to support and prize employees who practice activity and make significant innovative commitments, or do everything that is conceivable to assist clients with tackling their issues. At the point when employees see significant levels of strengthening, they are propelled towards their occupations and are probably going to encounter positive going with outcomes. Research in IS references disciplines has shown that customers prefer objects and experiences that are familiar to them. Personalization may positively affect customers' attitude towards the web site, raising their tendency to use or to visit it repeatedly. The customer tells you of some value and you personalize your product or service to meet it. Personalization can promote customer loyalty. Partnerships are made when providers work intimately with clients and add wanted services to their customary item and administration contributions. To get effective partnerships with customers, some suppliers create joint venture with them. Also, the deployment of relationship - specific assets could improve certain dimensions of partnership performance such as longevity of the supplier - customer relationship. Trust is the extent to which the customer believes that the vendor has intentions and motive that are beneficial to the customer and the vendor is concerned with creating positive customer outcomes. Generally speaking, most meanings of trust include a conviction that one relationship member will act to the greatest advantage of the other member.

CRM is relatively new technology so it is important to know its background before drawing any conclusions about current success on the market. In 1986, Pat Sullivan and Mike Muhney from Dallas presented contact management to the corporate environment, releasing a customer evaluation system called Automated Contact Tracking based on practice the principle of digital rolodexes. “Introduction to the History of CRM Software.” CompareCamp.com, 17 July 2017, comparecamp.com/introduction-history-crm-software/. This was solely the start, as in 1992 and 1993, processes connected with sales were experiencing full automation, and businesses revealed there are multiple brilliant opportunities they may capture to create the foremost of their leads' potential.

In 1993, Thomas Siebel established Siebel Systems by which the first attempt to design a real CRM system was implemented. “История Развития CRM.” История Развития CRM. 2018, www.voit.pro/blog/istoriya-razvitiya-crm/. Siebel spent almost all of his time communicating with customers and as a result program appeared to automate trade and sales, and a little later to automate marketing and support - Siebel Sales Enterprise - Siebel CRM. This project cost Tom Siebel a reported amount of $5.5 billion.

In 1995, the term CRM (Customer Relationship Management) appeared. It was first utilized at Siebel Systems to reflect the points of interest of this sort of programming item, be that as it may, there are a few feelings that prefer to offer credit to Gartner for designing the CRM idea. Not at all like past client assistance frameworks, the upgraded one started to battle for client loyalty.

In 1997 the established enterprise resource planning (ERP) software companies like Peoplesoft, Oracle, Navision and SAP began increasing their distribution, sales and customer service capabilities where CRM modules were built-in in order to compete with these new fast-growing CRM solutions. In 1999 CRM became mobile. Siebel launches Siebel Sales Handheld, one of the first mobile CRM applications. In further years, Oracle, SAP and PeopleSoft also began to offer similar functionality.

SugarCRM developed the first open source CRM system on the market in 2004. SugarCRM was founded as a commercial startup at Sourceforge.org. CRM was rapidly migrating to cloud during that period, so, as a consequence, small teams and sole entrepreneurs became to have access. Jha, Lakshman. Customer Relationship Management: a Strategic Approach. Global India Publications, 2008. This expansion in availability produced a tremendous wave of price reduction. Around 2009, developers started thinking about different options to benefit from social media's momentum, and planned tools to assist organizations with getting available on all users' favorite networks. As the result, the concept of social CRM appeared.

Between 2013 and 2014, CRM products were becoming customer-oriented to great extend and were linked to communication software and business intelligence systems just to improve corporate correspondence and end-clients' experience and understanding of processes. “Introduction to the History of CRM Software.” CompareCamp.com, 17 July 2017, comparecamp.com/introduction-history-crm-software/. The main leading trend is to supplant standardized CRM arrangements with industry-explicit ones, or to make them adjustable enough to address the issues of each business.

1.2 Types and main components of CRM

There are three different types of CRM software: operational, analytical and collaborative. Kumar, V., & Reinartz, W. Customer Relationship Management: concept, strategy, and tools. Berlin: Springer Berlin, 2012

1. Operational. Most existing solutions are of this type. Such systems simplify interaction with customers, organize data on orders and transactions, set invoices themselves, remind to call a customer back and can send him an SMS notification, record phone calls, etc. The main task of operational CRM systems is to increase customer loyalty in the process of direct contact with him. All operational CRM can:

· register incoming traffic (calls, letters, requests for the site);

· store in the database data about customers, applications, deals, tasks, etc.

· automate workflow within the company;

· record the progress of sales funnel transactions;

· remind about scheduled calls, letters, meetings;

· set tasks and control the work of employees

Operational CRM examples include: 1C:CRM, Salesforce CRM, BIT:CRM 8

2. Analytical. Unlike operating systems, analytics not only record the history of interaction with the client, but also help to trace patterns in sales: customers from which sources buy most often, at what stage most transactions break down, how customers are distributed across the sales funnel - and all this data is updated online, in the context of any parameter.

The purpose of analytical CRM is to analyze the accumulated information about customers and sales in order to build a more effective strategy. Analytical CRM can: Rivera, Maricel. “Examples of CRM Software and When to Use Them.” The Blueprint, The Blueprint, 27 Apr. 2020, www.fool.com/the-blueprint/crm-examples/

· segment a customer base;

· determine customer value;

· analyze their profitability;

· monitor customer behavior at each stage of the transaction;

· show the distribution of transactions by sales funnel;

· analyze sales dynamics;

· analyze the effectiveness of marketing tools;

· forecast sales

Analytical CRM examples include: SAS, SAP BusinessObjects and Marketing Analytic

3. Collaborative. Such CRMs establish communication with customers to collect feedback. The information obtained helps to adjust the range of goods, pricing policy, as well as the process of customer service. For example, employees of a call center of a car dealership ring up customers, asking questions about the quality of service and recording answers. According to the results of the survey, missing components are purchased and new services are added.

Collaborative CRM examples include: Pipedrive

As an additional type it is possible to find combined CRM systems. In recent years, programs combining elements of different types of CRM have come to the fore. These are mainly operational CRMs with a set of analytical functions (reports on sales, customers, managers' performance, etc.), as well as the ability to communicate with customers (due to integration with the site, instant messengers, social networks, etc.). Examples include; Megaplan, AmoCRM, Bitrix24, as well as other programs: S2, FreshOffice, RetailCRM.

Picture 2. Components in the different types of CRM Tavana, Ali Feizbakhsh.; Fili, Saeed.; Tohidy, Alireza.; Vaghari, Reza. & Kakouie, Saed. (November 2013). "Theoretical Models of Customer Relationship Management in Organizations". International Journal of Business and Behavioral Sciences

This is followed by components which, in the case of comprehensive utilization, form a successful CRM system:

1. Analytics is the process of studying, processing and presenting data in various graphical formats such as graphs, tables, charts, etc. in order to track trends in business and market.

2. Reporting includes accurate data on the results of sales, customer service and marketing activities.

3. Customer service - collection and distribution by the relevant departments of the following client information:

· Personal data about the customer (name, address, age, etc.)

· Previous model purchases

· Requirements and preferences

· Complaints and suggestions

4. Personnel management - hiring and placement on various key positions of the business most suitable for the task staff.

5. Lead management - tracking leads, managing campaigns, design of feedback forms and mailing lists, and constant study of the algorithms of the purchases made by customers.

6. Marketing - creating and implementing sales strategies by studying existing and potential customers.

7. Sales Force Automation - includes forecasting, recording sales, processing and tracking of potential interactions with the end consumer.

8. Automation of business processes - include optimization and planning of different, often running in parallel, the business processes. Due to this automation reduces the time and cost of many routine operations.

After analyzing components of CRM-system, main goals of it can be settled as following:

· Improving customer satisfaction - CRM helps increase customer satisfaction because it is satisfied customers who remain loyal distributors of positive information about you. Data on customer satisfaction are collected through online surveys involving events on social networks, through marketing research, based on interactive blogs and various mobile applications.

· Expanding the customer base - CRM covers not only existing, but also potential customers who have yet to win. It helps to create an extensive customer base that continuously generates profits even for seasonal products.

· Stimulating sales growth - CRM methods can be used to conclude more transactions, improve the accuracy of forecasts and recommendations to stimulate sales growth. CRM also helps create new sales opportunities.

· Improving labor productivity - the CRM system helps to create a corporate sales culture and form a team of commercial divisions. For example, sales staff can process customer contact information, establish feedback with them via e-mail or social networks, solve their tasks and track the work of colleagues.

1.3 CRM market trends

In 2015 the overall CRM market increased by 12.3 percent. In 2018 it grew by 15.6% and reached $48.2 billion. The table lists the top vendors in 2012-2018 (figures in millions of US dollars) published in Gartner studies Gartner_Inc. “Market Share Analysis: Customer Experience and Relationship Management Software, Worldwide, 2018.” Gartner, www.gartner.com/en/documents/3953579. (See Appendix 1).

According to experts, CRM remains the largest and fastest growing segment of the corporate software market, the volume of which in 2018 amounted to $ 193.6 billion and increased by 12.5% ??compared with a year ago indicator of $ 172.1 billion. Thus, CRM solution accounted for almost a quarter of the revenue from the implementation of corporate software. Among CRM systems, approximately 72.9% of the costs were taken by SaaS (software as a service) products. According to experts, in 2019 the share of the SaaS category will grow to 75% due to the quick adaptation and flexibility that such solutions possess. In addition, the growing demand in this segment is facilitated by the needs of companies for remote and mobile employees. The research report also indicates that the five largest manufacturers of customer relationship management systems (Salesforce, SAP, Oracle, Adobe, Microsoft) in 2018 occupied more than 40% of the market. There was only one change in the top 5: Microsoft climbed to fifth position, only slightly ahead of Genesys.

In the top five, Salesforce showed the strongest growth in CRM revenue - by 18.3%. Worst of all, sales at Microsoft rose by 2.7%.

Most often, CRM systems are still used in customer support services. In 2018, this area accounted for 35.7% of total costs in the market in question. The fastest growing area of ??using CRM solutions was marketing - here expenses in 2018 increased by 18.8% and exceeded 25% in the total market. Sales of all types of CRM products, depending on their purpose, increased by 13.7%.

In June 2019, Gartner introduced the so-called “magic quadrant” (research) in the field of CRM solutions used to serve and support customers. Salesforce has been recognized as the leader of this segment for the 11th consecutive year thanks to its Salesforce Service Cloud product, which provides call center employees (working in the office or remotely) with a set of AI (artificial intelligence), analytical and other tools that help solve customer problems. Gartner_Inc. “Magic Quadrant for CRM Service Providers, Worldwide.” Gartner, www.gartner.com/en/documents/2592020.

In addition to Salesforce, among the leaders in the segment of CRM systems for customer service and support in 2019 were Pegasystems, Zendesk, Oracle and Microsoft. The magic quadrant included 14 companies. According to experts, modern CRM systems for customer service should work seamlessly on a common platform using common development and integration tools, as well as open APIs (An application programming interface) and a common graphical user interface.

As CRM market trends, it is possible to define trends like:

Trend № 1. Artificial Intelligence. Experts estimate AI as a relief of the burden of routine manual tasks, for example, scoring leads, entering some data and even calling customers (not information, but in the form of a dialogue). Thus, employees will be able to devote almost all of their working time to customer service and focus on advisory tasks. In fact, each client, regardless of status and category, will receive their personal manager. The work of artificial intelligence to increase sales is associated with the use of blockchain, machine learning and natural language processing (NLP).

Trend № 2. Big Data and Data Mining. This trend has been around for many years. A business must accumulate big data in a CRM system or software integrated with it, and then correctly process and interpret it. And then data mining begins - a process that uses mathematical, statistical and machine learning methods to extract knowledge and other useful information for subsequent decision making. Experts say that companies previously collected data, but failed to process it, but now, with artificial intelligence, the data will be extracted efficiently, benefit all parties: both business and customers. Macwan, Sheetal, and Samrat Khanna. “Analysis and Application of Data Mining in CRM Systems of Healthcare Insurance.” International Journal of Computer Trends and Technology, vol. 56, no. 1, 2018, pp. 27-31., doi:10.14445/22312803/ijctt-v56p104. Data sources: gadgets, wearable electronics, social networks, sensors, etc.

Trend № 3. Growing demand for open source solutions. Experts and analysts note that open source CRM is also steadily growing in popularity. “CRM, Its Roots in Management Studies and Recent Research Trends.” CRM Systems in Industrial Companies, doi:10.1057/9781137335661.0007. More and more users prefer to use open source solutions for customization and implementation in the company.

Trend № 4. The period of the "social client" alludes to the use of internet-based life (Twitter, LinkedIn, Instagram, Facebook, Pinterest, Google Plus and so on.) by clients. CRM theory and methodology has moved to envelop informal communities and client networks. Greenberg, Paul (2009). CRM at the Speed of Light (4th ed.). McGraw Hill. p. 7.

Trend № 5. CRM + IoT (Internet of things). Analysts see IoT in CRM as the future of customer service, sales promotion, improved service and increased loyalty (the very hyper personalization). The Internet of Things is designed to provide businesses with a maximum of customer information, as well as provide the ability to remotely fix problems by learning about them using sensors as quickly as possible. Thus, it will be automation, capable of not only affecting the events around the client pointwise, but also able to pre-empt any troubles. In conjunction with CRM can get a really powerful solution.

1.4 Effect on customer satisfaction

Satisfaction is a feeling of joy or disappointment that emerges from comparing our expected performance, in terms of products or outcomes, to others' expectation. Kotler, Philip Kevin Keller. (2006). Framework for Management & Custom case. 3rd Edition. New Jersey: Prentice Hall Customers' rating of a product depends on many factors, one of it is the relation between customers' loyalty and a certain brand. Consumers often have a good impression of a brand, which they have known well. The customers' satisfaction strategy should be based on a detailed and accurate information of customers' expectation. Customers' expectation can sometimes be controlled, but most of the time, companies cannot do so. As a result, customers often move from one brand to another, when ones cannot meet their expectation.

Customers' loyalty is a combination of tangible and intangible factors received when a customer is consuming a certain product or service. Costumers' loyalty is a manifestation and continuation of customers' satisfaction in using services or facilities provided by a company and to remain a customer in that company. Customers' loyalty comes from the fulfillment of customers' expectation. A customer who has been loyal to a certain product will have an emotional bond with that product. Barnes, James G. 2001. Secrets of Customer Relationship Management: It's All About How You Make Them Feel. University of Virginia: McGraw-Hil

There are many satisfaction research methods: focus group, interviews, surveys, Retail Audit, Mix methods, Customer Satisfaction Index, Customer Satisfaction Study from MAGRAM Market Research (automobile companies and retail), SMARTTM from COMCON2, but the most widespread and proven method of researching customer satisfaction is SERVQUAL. The technique was proposed in the mid-1980s by a group of American researchers from the University of Texas. It was developed on the basis of a series of focus groups and in-depth interviews with managers of companies working in the service sector.Parasuraman,A.,Valarie. A.Zeithaml, and Leonard L. Berry (1988),``SERVQUAL: AMultiple-Item Scale for Measuring Consumer Perceptions of ServiceQuality,'' Journal of Retailing, 64 (Spring), 12-37 SERVQUAL's goal is to measure the extent of the gap between Customer Expectations and Customer Perception (that is, the actual situation). The information received (in the form of indexes) is used as one of the indicators of the success of the enterprise, along with financial, economic and other indicators.

Consumer expectations and perceptions of interaction with the company providing the service are evaluated by five basic parameters of the quality of services:

1. TANGIBILITY - physical facilities, equipment, and appearance of personnel;

2. RELIABILITY - the company's ability to deliver the service on time in full and on time;

3. RESPONSIVENESS - active willingness to provide prompt service to customers.

4. ASSURANCE - staff competence, awareness, and professional skills, politeness and friendliness, the capacity to stir client trust in the organization;

5. EMPATHY - ability to take care of the company personnel about their customers, the desire to communicate with customers for better understanding of their interests, guarantee individualized attention to all clients.

The idea how technology as CRM might have an impact on customer satisfaction is grounded on the concept of the service profit chain Heskett, J., & Jones, T. (2009). Putting the Service-Profit Chain to Work. Harvard Business Review, 164-170, which is presented on the Picture 4. The concept states that by increasing the quality of the firm's services, customer satisfaction will grow, which in turn will lead to increased customer loyalty and this will influence the firm's financial results positively. Thus, if technology can improve the firm's service quality, this could be a factor of increased customer satisfaction

Picture 4 Simplified version of the Service profit chain (Heskett & Jones, 2009)

Companies are becoming more aware of the potential benefits of CRM like:

· Increased customer satisfaction, retention and loyalty

· Higher customer profitability

· Value creation for the customer

· More product and service customization

· Less process, higher quality products and services

Furthermore, from an economic point of view, firms learned that retaining a customer is less costly than finding a new one. By Pareto's Principle, it is assumed that 20% of the company's customers make 80% of its profits. Empirical research has shown that CRM can benefit the firm also by improving the customer knowledge, interaction and value for that firm. Kim, J., Suh, E., & Hwang, H. (2003). A Model For Evaluating the Effectiveness of CRM using the Balanced Scorecard. Journal of Interactive Marketing, 6-19 Customers also benefit from saving more time and money as well as receiving more valuable information and special treatment from the company. In addition, analytical CRM tools can be used to increase relationship of the customers by analysing the captured data from customers. Analytical CRM is used to analyse customer surveys and behaviour to support the decision making for the firm's services. Adebanjo, D. (2003). Classifying and selecting e-CRM applications: An analysis-based proposal. Management Decision, 570-577

There are some customer benefits that were recognized to provide value drivers:

1. Customized services and products;

2. Connect customers and different channels to one united platform;

3. Enhanced sales force efficiency and effectiveness;

4. Improved customer service efficiency and effectiveness;

5. Better price policy

In spite of the general thought that CRM systems were made for the client driven organizations, they can likewise be applied to B2B environments to smooth out and improve customer management conditions. For the best work of CRM activity on B2B market, the software must be customized and conveyed at singular levels.

Conclusions of 1 Chapter

Businesses today are all about serving the customer's needs in this highly competitive global economy. Without having a customer-centric approach, customers will buy from another source as they have numerous options to choose from. Needless to say, businesses must understand their customers and go from a product-centric to a customer-centric approach of business. This strategy is named customer relationship management. The main process of CRM is, to extract valid new customer information from a large database, and through decision-science applications such as data mining and data warehousing, understand customer patterns and characteristics that can be used for better decision - making strategies. This is relatively new technology but all of its types that were analyzed (operational, analytical, collaborative) have already been able to solve the range of problems. CRM market shows that CRM remains the largest and fastest growing segment of the corporate software market and its main trends will be implementation of Artificial intelligence, Big Data and Data Mining and growing demand for open source solutions. Customer satisfaction is important to companies as customer satisfaction is directly linked to the financial performance of a company. Also, satisfied customers prefer to stay with their existing service provider and are more likely to recommend their service provider to others. It makes clear the necessity to use different tools, marketing instruments and technologies to have a positive impact on customer satisfaction. A widely used and popular method for defining and measuring service quality is the SERVQUAL model. Empirical research has shown that CRM has a positive effect on customer satisfaction and on loyalty and that CRM can benefit the firm also by improving the customer knowledge, interaction and value for that firm.



2. The company and existing CRM system

2.1 Company description and key financial figures

Orgkhim company was chosen to conduct the study. ORGKHIM Biochemical Holding is a Russian innovative company, founded in 2001, a developer and manufacturer of "green chemistry" products that are safe for humans and the environment, as the company's products are free of carcinogens. Thanks to the innovative approach and high intellectual competencies of the team, the holding effectively solves the problems of consumers and helps to increase the efficiency of their production.

Picture 5 Orgkhim in numbers “Главная - `ОРГХИМ.'” Главная - "ОРГХИМ", 2010, www.orgkhim.com/

The company is №1 among Russian manufacturers of “green” aromatic Rubber Process oils (RPO), as well as an important player in the global market of “green” aromatic Rubber Process oils and a leader in terms of sales in the global market of “green” RPO. Orgkhim is also Russian developer of promising products for the functional food market and the pharmaceutical industry (high-purity sitosterol).

The main advantages of the company are:

1. Compliance with standards ISO 9001: 2015, ISO 14001: 2015, IATF 16949, ISO 45001: 2018

2. Ensuring REACH (Registration Evaluation and Assessment of Chemicals) registration

3. Tailor made: development of unique products according to customer specific requirements

4. Orgkhim - an expert in the field of carcinogenic safety

5. 100% of products are developed in our own R&D (research and development) center

6. Efficient logistics, a wide network of terminals, proximity of the product to the consumer

7. Long-term experience of cooperation with leading tire and rubber companies: 9 of the 10 largest world tire companies are Orgkhim's clients

8. Consistently high-quality products

9. Wide sales geography - CIS (Commonwealth of Independent States), EMEA (Europe, the Middle East and Africa), AP (Asia Pacific)

It was noticed that the company has developed customer service, which operates efficiently thanks to:

1. Batch offer. In addition to products of its own production, Orgkhim offers a set of products of partner companies for the most complete satisfaction of customer needs.

2. Technical customer support: prompt problem solving and answers to customer questions; technical consultations, selection of optimal solutions for product brands; joint development of new products and recipes according to customer specific requirements.

3. Convenience. An opportunity to offer customers the most convenient types of packaging and transport for them.

Picture 6 Target markets of Orgkhim company

All products that Orgkhim produces are developed in its own Research Center, which is located in Nizhny Novgorod.

The research and development work (R&D) of the center is aimed at producing laboratory samples of new and improved current products, small-scale product samples preceding the serial launch of new products. One of the main topics that the team of specialists of the Research Center deals with is research in the field of carcinogenic safety. The work of the research center is organized by units, petrochemical and forest chemical units are identified.

The company Orgkhim uses a linear-functional organizational structure, based on the following advantages: (See Appendix 2)

· competence of functional managers, career opportunities;

· efficient use of resources;

· control of the activities of both entire units and individual performers;

· improved coordination in functional units.

The key financial figures of the company were analyzed to follow the dynamics.

Picture 7 Dynamics of key financial figures of the Orgkhim company

EBITDA (earnings before interest, taxes, depreciation and amortization) - profit before interest, taxes and depreciation of fixed assets and intangible assets. Масаев, В. Ключевые финансовые показатели для оценки деятельности предприятия / В. Масаев. - М.: LAP Lambert Academic Publishing, 2014. EBITDA shows the financial result of the company without taking into account the time spent on this result and it is very interesting to investors and analysts, because you can compare companies from different countries with different tax burdens. Analysts look at this indicator to analyze the creditworthiness of the enterprise. Owners or large investors can take it into account when launching new products or considering mergers and acquisitions, so understanding the dynamics of this indicator is very important. After analyzing the data for 5 years, there is no doubts that 2017 is the most successful year for the company in terms of revenue growth and EBITDA, as well as the relatively low Debt to EBITDA, which shows the company's ability to repay current debt.

Picture 8 Product Sales Revenues in the company

The graph on the Picture 8 helps to track the growth dynamics of revenue from product sales, as well as the growing CAGR (cumulative average annual growth rate), which is the best indicator of return on investment over time.



2.2 Analysis of Orgkhim main market

The main market of the company is the market of RPO. (Special process oils with ultra-low carcinogens).

Picture 9 Global RPO market breakdown by consumers, Kt Orgkhim and BCL's research; Kline's Global Rubber Process Oils 2018; Global Tire Report; IISRP Worldwide Rubber Statistics

The RPO market is only gaining momentum thanks to products that meet stringent requirements in the field of carcinogenic safety and are environmentally friendly, therefore it is important to occupy a competitive niche in the market and produce quality products.



Picture 10 Main RPO producers & their market shares, 2018

After analyzing the market data and Orgkhim's market share in the RPO, it is possible to conclude that the company occupies one of the leading places in the market, entering the top 5 players and being the 4th company in the market that produces exclusively “green” environmentally friendly oils.

The company supplies its Rubber Process oil which is called Norman to clients literally all over the world: to 12 of 20 TOP tire manufacturers and to 8 of 20 TOP synthetic rubber (SBR) manufacturers.



Picture 11 Orgkhim Norman rubber process oils customers

2.3 Implementation of CRM in company

Before proceeding to the analysis of the implementation of the CRM system in the company, it would be relevant to mention the main reasons that were basic in order to begin the development process:

1. The lack of common standards for the storage of information and the work of company employees;

2. Interruptions in the construction of reports on the progress of tasks in the context of each employee of the company;

3. For a new manager, it's quite difficult to immediately get involved in the work, without quick access to the necessary information about the history of customer relationships

4. Lack of standardization in analytics

Since 2019, the company switched to a test period of working on a CRM platform - Bitrix24, in order to optimize existing business processes, since the tools of this system are quite diverse:

· deal management;

· control over employees;

· analytical processes;

· data analysis;

· motivation;

· forecasting

The company is implementing following Bitrix24 instruments during its work:

1. Within the framework of the Contacts and Company entities, the Bitrix24 CRM-system stores and edits the contact details of customers. The essence of Contacts is used to store information about individuals. The company operates on the B2B system, so the Contacts entity contains data on the contact persons of the companies.

2. Bitrix24 has a built-in corporate social network where employees can discuss work issues, vote, exchange opinions and report important company news. When using this tool, there is no longer a question of how to make sure that all employees are familiar with the order or instruction of the head. The system automatically detects everyone who opened such a document.

3. Transactions have standard fields in which you can enter the necessary data, bind directories of existing contacts and companies. Using the connections inside the Bitrix24 system, it is likely to attach other entities to the transactions (Lead, Offer, Account). This allows to study in detail the progress of the transaction from the moment of circulation to the moment of completion of the transaction.

4. There are many reports in the Bitrix24 CRM system that allow to analyze various data. Even standard reports are enough to cover most of the emerging needs of managers at different levels. If some report cannot show the necessary information, then employee has the opportunity to create his own. One of the main transaction reports is the Sales Funnel.

5. In the market of CRM-systems there are few products that, at the moment, can boast a high level of "flexible" automation. It's about business processes. Today, maximum speed and coordination of personnel is required in order for the enterprise to withstand competition, as in many niches it is already quite crowded.

Picture 12 The main steps of the company's transition to the Bitrix24 system with time costs

It is safe to say that the company is only on the path to improving the proper use of this system and is taking the first steps in adaptation. Such automation cannot happen quickly, so Orgkhim does everything possible to gradually train its employees. Sales department were the first to evaluate the effectiveness of the system, and the following conclusions can be drawn after interviews with employees:

1. There is an opportunity for complete control over customers. In order not to miss a single customer, you must regularly remind yourself. It is quite difficult to do this without spending time, but this is precisely what this system helps with. With this program you can communicate with customers, while saving valuable time. It is possible to inform the client via SMS notification, e-mail newsletter. Notifications of this kind go away automatically.

2. All employees have one customer base. The CRM program stores all data about each client, it is possible at any moment to find out such information:

· individual data and order history;

· history of customer communication with managers;

· data definition during an incoming call;

Definitely, it's too early to talk about the overall performance of the system in all departments, but it is possible try to evaluate how exactly the CRM - system functions are used by the sales staff as advanced participants in the process of customer relationship.

Conclusions of 2 Chapter

Taking into consideration all mentioned above, Orgkhim might be called as leader among Russian manufacturers of “green” chemistry, producing ecological friendly aromatic Rubber Process oils, being the company, which keeps pace with the latest innovational technologies due to own R&D center. The RPO market is only gaining momentum thanks to products that meet stringent requirements in the field of carcinogenic safety and are environmentally friendly, therefore it is important to occupy a competitive niche in the market and produce quality products, on which the company is continuing to work every day and has successful results. Since 2019, the company switched to a test period of working on a CRM platform - Bitrix24, in order to optimize existing business processes, develop customer journey and increase production of employees. Despite the fact that Orgkhim remains on the first stage of implementation CRM system, it is already likely to follow the impact it has on employees' productivity, its clients and client satisfaction.



3. Analysis of impact of CRM system on customer satisfaction

3.1 Study of previous customer satisfaction analyses in company

Before proceeding directly to the research process, itself, it is important to analyze questionnaires with information about past customer satisfaction.

A survey was conducted on the satisfaction of foreign customers of Orgkhim on 10 parameters for 2018. (See Appendix 3). The parameters included: product compliance with customer specification, completeness of documentation, punctuality of order realization, quality of logistics services, response to urge customer needs, communication with customer, packaging and labelling, stable quality (Process Capability Index (CPK) index), certification compliance, product portfolio. Clients were suggested to estimate the quality of parameters above using a 10-point scale from ``Very Dissatisfied'' (1) to ``Very Satisfied'' (10). The basis for a deeper analysis of individual factors was the relatively low customer ratings. So, for such a factor as “punctuality of order realization”, 4 ratings of 6/10 were observed, which is a rather average result and may indicate an insufficiently careful attitude to individual customers or a breach of the systematization of deliveries. Picture 13 also shows red highlighted customer satisfaction indicators for the factors “response to urge customer needs” and “communication with customer” with a varying score of 5 to 10.

As comments, clients mentioned following shortages: “Lack of flexibility in terms of schedule revision due to high dependence on one forwarding company only the trial of another forwarder failed because drivers could not communicate in English with warehouse people during unloading”; “Sometimes the shipping schedule delay after we confirmed to customers”; “Recently we found some products without label documents when customs arrange inspection”.



Table 1

Responses to the survey “Customer satisfaction of Orgkhim clients” by parameters in 2018

All the above factors are directly related to the operation of the CRM system. Although the company only recently launched it, it is likely that the system could already bring significant improvements to the work, correcting errors that were made earlier.

3.2 Estimation of CRM usage and customer satisfaction

The ultimate goal of the current study is to discover how CRM usage by the employees in Orgkhim Biochemical Holding affect their customer's satisfaction with the service and product quality level.

The practical part of current study consists of following research methods: two surveys are conducted to estimate how efficiently employees apply system and SERVQUAL model to measure customer satisfaction and opinion on quality of products and service in the company. Results of descriptive statistics are processed through the statistical program SPSS and are used for regression analysis.

To assess the effectiveness of using the CRM system, a survey was developed, consisting of 5 questions about its direct use by Orgkhim sales managers, where it was necessary to answer on a scale from 1 (I do not use this function) to 5 (I fully use this function). Question 6 was asked as a control variable for constructing a regression. The questionnaire was prepared for the subsequent assessment of the impact of using this system on customer satisfaction.

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