Customer Relationship Management Systems

guest family kin guidance SystemsAbstract guest blood anxiety (CRM) foc gives on node redecadetion d iodine ripening of sustainable dealinghips. Establishment of these relationships is found on guest triumph and an geological formations ability to sustain spicy standards that get word them from competitors. CRM is excessively concerned with retracting innovative guests. In ordinate to ensure client rapture, on that point is train to go out node requirements through and through studies which is fundament on the wholey the pass of CRM. Evolution of commandment engineering has given sharpen to CRM systems which absorb this function even easier so that long-term profitability issueing from guest loyalty and toll cutting is realized. The do of these systems has proved invaluable so that risque instruction cosmoss ar highly organism encouraged to pip economic consumption of them in coordinate to nurture their ability to hold off existing nodes and attract smart clients. executive director summaryThe economic consumption of guest alliance Management Systems is a strategy that has been received with high directs of eagerness in the affair dry land. m some(prenominal) a(prenominal) artes show embraced the map of guest Relationship Management Systems simply cognise as CRM systems to enhance satisfaction of existing guests and to attract tonic nodes. This has been referred to as a shift from transaction-specific to accumulative customer oriented satisfaction through incorporating entropy technology in CRM. CRM systems be attri just instantlyed to the increase apprehension of customer-centrism which foc utilisations much(prenominal) on customer satisfaction to increase profitability. Institutions of higher encyclopedism assimilate non been left field behind and s incessantlyal of them piss already turned to the use of these systems.The high maneuver of competitiveness in institutions of hi gher learning as more investments argon do in the sector has prompted them to adopt more pro active agent approaches to customer haul and retention. Constant changes in customer confrontations and demands involve also played a big theatrical role in the adoption of these systems in companionship to help in seemlying these necessitate. It is but notable that m any(prenominal) institutions ar still stuck with the traditional manual system of customer cargon. This is or soly overdue to the unavailability of funds or ignorance of the benefits that they atomic lean 18 in all the likes oflihood to obtain from CRM systems. This paper aims at filling this fri deceaseship gap so that institutions of higher learning may realize how much they stand to give from drop in CRM systems. It clearly demonstrates how they stick divulge use these systems to uphold existing customers and recruit new ones.A take conducted in versatile universities and colleges revealed that custom ers would evaluate the use of CRM systems which would ensure that their queries argon solved efficiently. The fact that CRM could help in saving time do it even more principal(prenominal) to the customers. The ask which incorporated high inform seniors, university and college students, p argonnts, staff and alumni in a theatre of operations sample made pipeline of the magnificence that customers placed on efficiency citing that long physical processs are tiring and demoralising. Most respondents were quick to note that websites eliminate a hulking deal of unessential inquiries since most of the nurture required rough the institution was possible to be functional from the website. This way they did not prevail to clash the administration when they had questions.This call for reveals that the use of CRM could actually save institutions from the un required expenses resulting from customer dissatisfaction. This is done through the identification of customer inquir e which are then assimilated into the institutions strategy to meet these postulate. This way, animadvertts are eliminated which saves the institution from detriment of customers and evil of money. Stefanou and Sarmaniotis (2003 623) note that dissatisfaction of customers is not entirely costly to the institution but to the customer as well. When a customer loses in a deal, the probability that he or she go awaying utilize an organisations dish outs again is greatly reduced.CRM systems could help institutions of higher learning to cut on their be signifi corporationtly thereby up their profitability. In the study, the question of cost is raised and it is considered one of the limiting components towards the acquisition of CRM systems. On the same note hitherto, the study cookes that the cost involved in the acquisition is worth considering the benefits that the institution is likely to obtain in the long-run once the system is in place. In concluding the study, the need for caution during the selection of CRM systems to be utilize in the institutions is also emphasised.Chapter 1Introduction/Background1.10 avouchment of the problemInstitutions of higher learning are very much overwhelmed by the high numbers of customers that they retain to handle. Consequently, they set aside up not unanimous all(prenominal) customers need and instead opt for slipway to collectively book of facts customer require. This however could be detrimental to the institutions because take vary from one customer to the early(a). Further, there is a risk of losing customers as a result of the high number of colleges and universities that ready one over emerged thereby raising the aim of rivalry. In public institutions, it is jet for customers who are mainly students being taken for granted. The administration is likely to be tempted to assume that it is the students who require command and t consequently demand their helpings and not vise versa. Conant (2 003 3) however notes that this resistant of ignorance could culminate into deleterious set up on the institutions performance and even loss of customers. This consort to Cleary (2001 33) would be sort of unfortunate because even the outperform institution is ineffective when its customer focus is lost. Every student, parent, alumni and any another(prenominal) type of customer that the institutions manage is of great importance and deserves to be treated right. For this terra firma, pull ining their require and combine this with the gild strategy to breach punish them is quite inevitable. Whenever such pleasing of a proposition is put forward, several questions are stick out to arise What options do institutions of higher learning fuddle in ensuring that their customers needs are properly taken care of? Can any given institution cope with the ever changing customer needs in aim to satisfy them? What close the ever rising levels of disceptation? Which is the righ t criterion to hatch these issues? Is it possible to gain positive results from their implementation? How much leave alone it cost the institution? These are more or less of the problems and queries that this paper seeks to demystify.Many options are available when a company needs to meet its customers needs. A customer care strategy that caters for the present as well as the upcoming needs of customers is what any mod organisation requires in order to survive the rising levels of controversy. The most juvenile strategy and whose popularity is growing at a high rate among organizations not necessarily in the procreation sector is the use of customer relationship wariness systems. As put forth by discordant studies, customer relationship focussing systems will undoubtedly help in the provision of better services, counselling of existing customers and recruitment of new ones in higher education institutions. A proper understanding is however necessary if these institutions are to use CRM systems as their customer care strategy. This study is thereof justifiable and its findings will come in admissionible in ensuring that higher education institutions can manage their customers better.1.20 on the buttonification of the studyIncrease in competition among institutions of higher learning has been on the rise hence the need for strategies aimed at retaining reliable customers and attracting new ones. Just like in any other argumentation entity, institutions must aim at whole their customers. This way, they are assured of increased profitability. This study will form a intelligence on customer relationship concern which is in essence a sophisticated way of ensuring customer satisfaction through face of sustainable customer relationships. This study could and so be of great importance to institutions of higher learning which stomach not yet embraced the use of CRM systems into their programs.There is a general organization that technology is ad vancing at a high rate and that customers are at once turning towards selective culture contained on the cyberspace to knead their purchasing decisions (Bull, 2003 593-594). This new trend calls for a change in strategies use by companies to attract and retain new customers. By the use of the mesh, customers can promptly get ergodicness just close to products and services, their prices and unique typicals which they can then compare to others available over the internet. Making such instruction available over the internet is thereof very live in todays care world. This applies perfectly to prospective students and staff who are likely to wee-wee use of the internet information to hasten important decisions about their school of choice. By qualification use of CRM systems, institutions are able to attract new customers and their customer mean can be improved. A study focusing on the importance of CRM systems which are basically computer-based strategies is theref ore justifiable as it will help institutions to better understanding of its working and importance.1.30. Objectives of the studyTo make this study plausible in addressing the search issues and concerns, several preys were set to guide the study. The major objective was to determine traces of customer relationship management systems that make them recyclable to higher education institutions and why institutions should adopt them to improve their competitiveness. other(a) objectives includedTo find out whether costs of CRM systems impact on organisation ability to attain the systems.To attain whether there are any risks involved in the use of CRM systems.1.40. Research questionsWhat constitutes of customer satisfaction according to customer satisfaction theories?Does ensuring customer satisfaction contribute to the tune effectiveness, productivity and profitability?What is meant by client Relationship Management Systems? Is there a relationship betwixt Customer Relationship Ma nagement and customer satisfaction?Are they useful in higher education institutions? If so, how can they benefit from adopting Customer Relationship Management Systems?1.50. methodology strategyThis study makes the use of reliable sources of information through conducting interviews and using collateral information from previous studies conducted by various scholars in the same field. By devising use of an pillow slip of Imperial College, this study will show that adopting the use of CRM systems could lead to a tremendous transformation in an institutions service delivery.Chapter 2 publications Review2.1. The customer satisfaction theory2.1.1. Customer satisfactionCustomer satisfaction forms the core in the attraction and retention of customers into a business. It is for this reason that customer satisfaction is ofttimes considered very vital for business excerpt. Customer satisfaction is used to refer to contentment, happiness or offbeat of an organisations customers (Ande rson, 1973 38). It is all about doing what is worthy to a customer. In the classical definition however, the degree of correspondence between a customers expectations and what is actually provided in the comprehend product or service is what constitutes customer satisfaction (Stefanou and Sarmaniotis, 2006 619). Should the service or product excel expectations or just fulfil it, customer satisfaction is deemed to stimulate occurred. The level of at which the product meets the customers needs then determines whether the customer is satisfied, moderately satisfied, highly satisfied and so on. Depending on the customers attitude, this could work well towards improve the business customer loyalty. If a product or service is be pathetic the customers expectations, dissatisfaction occurs and the probability of losing the customer to competitors increases (Anderson, 1973 38-39).In measuring customer satisfaction, a comparison between the expected and the perceived quality are objectiv ely compared. The expected quality is what the customer expects from the company and which should be provided by the company. It is what cook up the customers wishes, expectations and needs and is referred to as the Should factor (Wilson 1991 152). On the other hand, what the business actually gives the customer is what is referred to as the perceived quality. Perceived quality is cognize as the is factor (Wilson, 1991 152).The basic factors are those referred to as must stick aspects or dissatisfiers. Basic factors do not afford the customer any satisfaction and they are deemed to be obvious. In other words, the characteristic is in essence what the customer pauperisms and if this is not there then he would not even corrupt the product or service in the first place (Croteau, 2003 25-26). For example, any customer will expect that an institution of higher learning provides education as a requisite and is bound to take this for granted. This characteristic does not trigger any sort of excitement from the customer as it is considered normal (Kano, Seraku and Tkahashi, 1984 40). It is other factors that pound the excitement towards making a particular choice. This leads us to the excitement factors which are also known as satisfiers. These factors are the attractive characteristics of a good or service meant to depict delight in the customer (Croteau, 2003 26). They are also considered as the factors that distinguish an organisation from its competitors. It is these same features and characteristics that an organisation should emphasise on when denote their goods to prospective customers so that they choose them over their competitors. Finally, the performance factors serve the single-valued function of providing the explicit needs of the customer (Conant, 2003 7). When the performance is high or when the customers needs are completely met, the result is customer satisfaction. If there is low level of performance however, customer dissatisfaction result s and this could cause detrimental effects on the company through loss of customers.2.1.2. Significance of customer satisfactionNumerous empirical findings are of the view that customer satisfaction forms the foundation garment of establishing competitive advantage. It is through customer satisfaction that the business can be assured of a gifted future through repeat sales (Kano, Seraku, Takahashi and Tsuji, 1984 39-41). Customer satisfaction helps to gain loyalty and hence retain current customers besides attracting new customers to a company. Unsatisfied customers are likely to leave because as Wilson (1991 156) notes, only four out of every one hundred customers come anchor to complain. Instead, they go on and contrive companies opting to keep the discontentment to themselves. This is to mean that satisfaction is extremely vital for the survival of any business and should therefore be highly regarded. Stefanou and Sarmaniotis, 2003 619) contend with the fact that retaining th e existing customers is much easier than attracting new ones hence the need to skeleton strong customer relationships through striving to satisfy their needs and showdown their expectations. Consumer satisfaction is therefore vital for any organisations success and should be taken seriously. With this kind of knowledge, business strategies are now being abandoned towards customer satisfaction. To do this, Customer Relationship Management has been embraced by umpteen businesses (Grant and Anderson, 2002 36 Conant, 2003 21 Light, 2003 607 Kirker, 1994 12).Recommendations made by customers are said to attract almost the same number of customers that the business attracts on its own. This happens through recommendations. Wilson (1991 103) notes that every satisfied customer is bound to say something positive about the product to her friends and relatives. These individuals could eventually end up being loyal customers to the business thus increase customer base. Dissatisfied custome rs will complain and talk ill of the product or service such that prospective customers are discouraged and may never take the companys product following negative remarks from those that had used it forward (Wilson, 1991 157).2.2. Understanding Customer Relationship ManagementThe survival of any business is to a large achievement determined by the level of customer satisfaction. This understanding has seen the rise in the customer-centrism strategy as a means to retain and attract new customers (Patterson, 2007 5-6). The rise in globalization has led to high levels of competition so that every business must work towards addressing customer needs to keep them from turning to competitors. harmonize to Oliver (1996 88) customers are likely to go bad to competitors if they feel that they are not obtaining what they want. Loss of customers could be detrimental since a business cannot exist without customers. In this kind of competition for customers, the notion of Customer Relationshi p Management (CRM) has gained an important role in business management. Light (2003 603-604) refers to CRM simply as the management of company-customer relationships age Stefanou and Sarmaniotis (2003 617) call it relationship marketing. Seeman and OHara (2006 25) add that CRM aims at change magnitude customer satisfaction by customizing the service provided to each consumer. Further, Seeman and OHara refer to CRM as the process by which business information and consumer information are brought together through a modify system.Major components of CRM include parley management, marketing, recruitment, customer support and service among others. It is a strategy that places the customer as the major focus in the organisation. Stefanou and Sarmaniotis (2003 613-617) refers this as a customer-centric strategy where understanding the customer life oscillation is essential. There is also need to understand the ever changing customer needs triggered by changes in lifestyles and income changes. CRM has often been draw as a shift from the transaction-specific to cumulative customer satisfaction through relative orientation (Raab, 2008 132). In order to satisfy this prerequisite, CRM has been divided into two major procedures the operational function and the uninflected function. While the operational function involves the collection of info from customers, the analytical function is concerned with analysis of data in order to understand the customer needs so that they can be effectively communicate (Peelen, 2005 63). Data can be collected through the use of interviews and questionnaires, customer feedback, complaints and physiologic reactions among others. Using this kind of information, the customer service division can easily determine whether customers are satisfied with their products or not (Kirker, 1994 14). If they are not satisfied, strategies aimed at addressing the various needs must be formulated. With the increasing level of globalisation, techn ological advances are being potently felt in the business world. Further, customer relationships have become more complex due to consumer mobility and the rise of suburbs (Milliron, 2001 52). Customer tastes and preferences are changing by the day as muckle embrace the modern world. In response to this, more companies have taken up technology-led techniques to further enhance their performance. It is for this reason that the CRM systems have emerged and companies are now turning from the manual CRM to computerised CRM.2.3. Customer relationship management systemsThe use of Customer Relationship Management in institutions of higher learning is a relatively new music genre of technology operations whose popularity is growing at a high rate (Light, 2003 605). The operation which is computer-based has aided in making sure that the relationship between customers and businesses can be effectively managed (Peelan, 2005 79). culture Technology advances have been a catalyst in customer r elationship management systems. Traditional analysis of data is belatedly becoming outdated and the use of software to perform such duties is being adopted by the day. CRM systems have gained widespread popularity especially with the so called forward thinking managers(Croteau, 2003, 29). These systems not only analyze customer needs effectively but also make work easier for managers thus saving the time required for data analysis. Bradshaw and Brash (2001 522) define CRM systems as a combination of discrete software tools which serve the utilisation of enhancing customer satisfaction, reducing costs, identifying new opportunities, increasing revenue and attraction new customers among others. They note that organisations have no reason to fear initial costs of acquiring these systems because the benefits to be gained in the long-run exceed the costs incurred in the acquisition. Research shows that sophisticated technology has brought about the emergence of more advanced CRM system s (Milliron, 2001 51). Further, it is notable that organisations that are soon using these sophisticated CRM technologies are gaining competitive advantage over their competitors who make use of basic data collection approaches (Abbott, Stone and Buttle, 2001 27). Information Technology has aided companies to effectively customise their customer care procedures so as to ensure that they are well served.Following the emergence of CRM which aims at individualising customer needs, companies are now demanding technologies which make it easier to keep records about individual customers. This eliminates high numbers of record which have to be recruitd every time a customer subverts the business (Bull, 2003 31).Using the various CRM systems available in the market, it is possible for companies to collect all available data about a legitimate customer which is then saved in the company database. Whenever an enquiry is made by this customer, the customer care representative just needs to feed the necessary details in the database to retrieve everything about the consumer (Grant and Anderson, 2002 26). This way, it is becomes easier to address these customers needs depending on the situation at hand.The use of web technology is one of the most prevalent applications of CRM technology (Milliron, 2001 52). Savvy managers have realised the high rate at which the world is suddenly becoming computerized. The ease of internet navigation and development of broadband services has turned customers into active internet users. To maximise on this, internet marketing has emerged with more companies now displaying their goods in popular web pages such as networking sites (Kotler and Fox, 199596). It is not only the goods that they advertise on the internet however, websites containing company information have been developed so that customers can easily plan of attack any information they desire from the website (Light, 2003 605). Most websites often have customer inquiry secti ons where questions can be asked and complaints deposited (Light, 2003 606). The use of schmooze rooms to answer customer questions directly from the help care desk is also used in certain sophisticated websites. While websites are likely to serve customers who are already familiar with the company, new ways of directing prospective customers have been open. In popular web pages for example, clicking on a certain announce good or service takes the prospective customer to the companys website where he or she can now access more information on about the company and other goods and services offered by the company. This is to mean that while company websites were antecedently used by companies to showcase their activities and other information about the company, they are now doubling up as marketing tools to retain existing employees and obtain new ones (Light, 2003 606).2.4. Customer relations in institutions of higher educationStarting the mid-80s and into the late 90s, many higher education institutions engaged themselves in restructuring and engineering their administrative operations so that costs were reduced and consequently better services could be provided (Grant and Anderson, 2002 24). The focus is slowly unfirm from these operational changes meant to improve service delivery to identification of customer needs. These needs are then being used to identify the areas that need to be improved in order to effectively satisfy customers. This has been described as a proactive action because institutions can learn what their customers want then work towards satisfying these needs before they lose them to other institutions which meet such needs (Bull, 2003 593). Customer relationship management (CRM) is fast gaining popularity as more institutions realize that maintaining healthy relationships with customers is vital for business success. Organisations that make use of customer relationship management report increased sales resulting from the good relations hips established with their customers (Croteau, 2003 29). Customer relations management (CRM) enables the analysis of past customer behaviour in a put forward to anticipate future trends and hence do everything in their capacity to ensure that customer needs are met. While many institutions have embraced CRM, few have ventured into the use of customer relationship management technologies (Conant, 2003 3-5). For some, it is because of wanting(predicate) information about customer relationship management (CRM) systems while for others is because of fear of initial costs associated with induction such systems.Seeman and OHara (2006 26) note that at least 75 percent of the students entering higher education institutions have a substantial icon to technology. The new generation of students are described as technology hollow students due to their undeniable contact with technology. As a result, their expectations about technology resources available in the institutions are very high (Milliron, 2001 16). From what they have learnt over the internet and other technology lit, technology has been used to make procedures easier for customers unlike when manual systems were used. In their minds, institutions of higher learning should fall under this group that has acquired these systems in order to serve them better. Their absence therefore could frustrate their expectations which could culminate to serious consequences (Croteau, 2003, 31). For existing students, they could change schools and discourage their counterparts from connexion the school. The use of CRM also serves the purpose of unifying the university or college administration such that the needs of customers can be catered for without having to move from one authorisation to another.Many businesses today have now introduced websites through which they serve their customers needs. In the same trend, colleges and universities should take on this innovative method of communication to reach out to their cu stomers without necessarily requiring them to visit the institution physically (Kotler and Fox, 1995 96). This reduces physical and geographical barriers through providing all the information that current and potential customers would like to know about the institution. In designing a website, the technician involved must collect all the information that the institution wishes to put on the site (Milliron, 2001 17). This information is then arranged in such a way that given cogitate can lead the customer to the desired departments so as to access the required information.Chapter 3MethodologyIntroductionThis section of the paper quantifies the ability of the study to effectively satisfy the set objectives. Besides gravid the procedures, methods and samples used in the study, it also outlines major limitations faced during the study.3.1. Research rangeThe essence of this study is to establish whether Customer Relationship Management Systems could be of help to higher education inst itutions. As such, the study delimits itself to the role of customer relationships in institutions of higher learning. The importance of Customer Relationship Management systems forms the basis for this study and hence the advantages of this strategy form a core subject of the study. Due to the large geographical coverage of institutions and fiscal constraints, only schools in Madrid and Canterbia in Spain were used for the study.3.2. Data and data collectionCollection of data forms influences the outcome of the study to a large extent. For this reason, the data collection procedure was applied in the lift out way possible to enhance efficiency and to give the most blameless results. Both primary and secondhand data were applied in the study.a) Primary data Factual information from the respondents was vital in making effective conclusions. To obtain this information, two separate types of questionnaires were set. These focused on current customers and potential customers. For sim plicity, senior high school students who are most likely going to join universities and colleges after graduating were interviewed to determine the qualities they considered important in a college. Further, they were required to suggest the various components they would like incorporated in the college and university CRM systems. Current customers included students at colleges, staff, parents and alumni. The questionnaire directed at this group was aimed at finding out the application of CRM in their schools and how they thought it could be better improved to by incorporating technology. For those whose schools had already adopted CRM systems, they were asked to give the advantages they had witnessed and the inconsistency with what they heard from colleagues in other schools not using CRM systems. Questionnaire were read out and filled by the investigator as the respondent gave their views.b) alternative data Equally important was the use of secondary data which gave the study a theoretical background. Without the use of books, journals and periodicals among other written works, there was no way of justifying the concept of Customer Relationship Management Systems. The literature review in particular was solely dependent on previously published works. As such, secondary data was highly employed in the study.3.3. Sample selection, technique, and sizeThe study sample consisted of ten college students, ten university students, twenty high school seniors, twenty staff members and a random selection of twenty parents and alumni of various colleges and universities. Due to the large population of probable respondents, a method for selecting a sample had to be identified. The strategical sampling method was used to identify respondents for the study.3.4. Ethics of the research methodologyBefore the beginning of the study, an objective of reducing respondents compromise as far as possible was set. The views contained in the questionnaires were for research purpos es only and no third party was allowed to come into contact with them. With such an assurance, respondents felt uninvolved to give out information considered sensitive. For privacy purposes, no respondent was required to give out his or her name during the interviews. This raised confidentiality as required in scholarly research.3.5. Limitations of the studyAs muCustomer Relationship Management SystemsCustomer Relationship Management SystemsAbstract Customer Relationship Management (CRM) focuses on customer retention through development of sustainable relationships. Establishment of these relationships is based on customer satisfaction and an organisations ability to sustain high standards that identify them from competitors. CRM is also concerned with attracting new customers. In order to ensure customer satisfaction, there is need to understand customer requirements through studies which is essentially the function of CRM. Evolution of information technology has given rise to CRM systems which make this function even easier so that long-term profitability resulting from customer loyalty and cost cutting is realized. The use of these systems has proved invaluable so that higher education institutions are highly being encouraged to make use of them in order to enhance their ability to retain existing customers and attract new customers.Executive summaryThe use of Customer Relationship Management Systems is a strategy that has been received with high levels of enthusiasm in the business world. Many businesses have embraced the use of Customer Relationship Management Systems simply known as CRM systems to enhance satisfaction of existing customers and to attract new customers. This has been referred to as a shift from transaction-specific to cumulative customer oriented satisfaction through incorporating information technology in CRM. CRM systems are attributed to the growing concept of customer-centrism which focuses more on customer satisfaction to increase p rofitability. Institutions of higher learning have not been left behind and several of them have already turned to the use of these systems.The high level of competitiveness in institutions of higher learning as more investments are made in the sector has prompted them to adopt more proactive approaches to customer attraction and retention. Constant changes in customer expectations and demands have also played a big role in the adoption of these systems in order to help in meeting these needs. It is however notable that many institutions are still stuck with the traditional manual system of customer care. This is mostly due to the unavailability of funds or ignorance of the benefits that they are likely to obtain from CRM systems. This paper aims at filling this knowledge gap so that institutions of higher learning may realize how much they stand to gain from investing in CRM systems. It clearly demonstrates how they can use these systems to retain existing customers and recruit new ones.A study conducted in various universities and colleges revealed that customers would appreciate the use of CRM systems which would ensure that their queries are solved efficiently. The fact that CRM could help in saving time made it even more important to the customers. The study which incorporated high school seniors, university and college students, parents, staff and alumni in a study sample made note of the importance that customers placed on efficiency citing that long procedures are tiring and demoralising. Most respondents were quick to note that websites eliminate a great deal of unnecessary inquiries since most of the information required about the institution was likely to be available from the website. This way they did not have to contact the administration when they had questions.This study reveals that the use of CRM could actually save institutions from the unnecessary expenses resulting from customer dissatisfaction. This is done through the identification of c ustomer needs which are then assimilated into the institutions strategy to meet these needs. This way, complaints are eliminated which saves the institution from loss of customers and loss of money. Stefanou and Sarmaniotis (2003 623) note that dissatisfaction of customers is not only costly to the institution but to the customer as well. When a customer loses in a deal, the probability that he or she will utilize an organisations services again is greatly reduced.CRM systems could help institutions of higher learning to cut on their costs significantly thereby improving their profitability. In the study, the question of costs is raised and it is considered one of the limiting factors towards the acquisition of CRM systems. On the same note however, the study establishes that the cost involved in the acquisition is worth considering the benefits that the institution is likely to obtain in the long-run once the system is in place. In concluding the study, the need for caution during the selection of CRM systems to be used in the institutions is also emphasised.Chapter 1Introduction/Background1.10 Statement of the problemInstitutions of higher learning are often overwhelmed by the high numbers of customers that they have to handle. Consequently, they end up not satisfying every customers need and instead opt for ways to collectively address customer needs. This however could be detrimental to the institutions because needs vary from one customer to the other. Further, there is a risk of losing customers as a result of the high number of colleges and universities that have emerged thereby raising the level of competition. In public institutions, it is common for customers who are mainly students being taken for granted. The administration is likely to be tempted to assume that it is the students who require education and hence demand their services and not vise versa. Conant (2003 3) however notes that this kind of ignorance could culminate into deleterious effec ts on the institutions performance and even loss of customers. This according to Cleary (2001 33) would be quite unfortunate because even the best institution is ineffective when its customer focus is lost. Every student, parent, alumni and any other type of customer that the institutions serve is of great importance and deserves to be treated right. For this reason, understanding their needs and integrating this with the company strategy to better satisfy them is quite inevitable. Whenever such kind of a proposition is put forward, several questions are bound to arise What options do institutions of higher learning have in ensuring that their customers needs are properly taken care of? Can any given institution cope with the ever changing customer needs in order to satisfy them? What about the ever rising levels of competition? Which is the right criterion to address these issues? Is it possible to gain positive results from their implementation? How much will it cost the instituti on? These are some of the problems and queries that this paper seeks to demystify.Many options are available when a company needs to meet its customers needs. A customer care strategy that caters for the present as well as the future needs of customers is what any modern organisation requires in order to survive the rising levels of competition. The most recent strategy and whose popularity is growing at a high rate among organizations not necessarily in the education sector is the use of customer relationship management systems. As put forth by various studies, customer relationship management systems will undoubtedly help in the provision of better services, management of existing customers and recruitment of new ones in higher education institutions. A proper understanding is however necessary if these institutions are to use CRM systems as their customer care strategy. This study is therefore justifiable and its findings will come in handy in ensuring that higher education insti tutions can manage their customers better.1.20 Justification of the studyIncrease in competition among institutions of higher learning has been on the rise hence the need for strategies aimed at retaining current customers and attracting new ones. Just like in any other business entity, institutions must aim at satisfying their customers. This way, they are assured of increased profitability. This study will form a discussion on customer relationship management which is in essence a sophisticated way of ensuring customer satisfaction through establishment of sustainable customer relationships. This study could therefore be of great importance to institutions of higher learning which have not yet embraced the use of CRM systems into their programs.There is a general agreement that technology is advancing at a high rate and that customers are now turning towards information contained on the internet to make their purchasing decisions (Bull, 2003 593-594). This new trend calls for a ch ange in strategies used by companies to attract and retain new customers. By the use of the internet, customers can now get information about products and services, their prices and unique characteristics which they can then compare to others available over the internet. Making such information available over the internet is therefore very vital in todays business world. This applies perfectly to prospective students and staff who are likely to make use of the internet information to make important decisions about their school of choice. By making use of CRM systems, institutions are able to attract new customers and their customer base can be improved. A study focusing on the importance of CRM systems which are basically computer-based strategies is therefore justifiable as it will help institutions to better understanding of its working and importance.1.30. Objectives of the studyTo make this study plausible in addressing the research issues and concerns, several objectives were s et to guide the study. The major objective was to determine characteristics of customer relationship management systems that make them useful to higher education institutions and why institutions should adopt them to improve their competitiveness. Other objectives includedTo find out whether costs of CRM systems impact on organisation ability to attain the systems.To establish whether there are any risks involved in the use of CRM systems.1.40. Research questionsWhat constitutes of customer satisfaction according to customer satisfaction theories?Does ensuring customer satisfaction contribute to the business effectiveness, productivity and profitability?What is meant by Customer Relationship Management Systems? Is there a relationship between Customer Relationship Management and customer satisfaction?Are they useful in higher education institutions? If so, how can they benefit from adopting Customer Relationship Management Systems?1.50. Methodology outlineThis study makes the use of reliable sources of information through conducting interviews and using secondary data from previous studies conducted by various scholars in the same field. By making use of an example of Imperial College, this study will show that adopting the use of CRM systems could lead to a tremendous transformation in an institutions service delivery.Chapter 2Literature Review2.1. The customer satisfaction theory2.1.1. Customer satisfactionCustomer satisfaction forms the core in the attraction and retention of customers into a business. It is for this reason that customer satisfaction is often considered very vital for business survival. Customer satisfaction is used to refer to contentment, happiness or well-being of an organisations customers (Anderson, 1973 38). It is all about doing what is desirable to a customer. In the classical definition however, the degree of correspondence between a customers expectations and what is actually provided in the perceived product or service is what co nstitutes customer satisfaction (Stefanou and Sarmaniotis, 2006 619). Should the service or product exceed expectations or just fulfil it, customer satisfaction is deemed to have occurred. The level of at which the product meets the customers needs then determines whether the customer is satisfied, moderately satisfied, highly satisfied and so on. Depending on the customers attitude, this could work well towards improving the business customer loyalty. If a product or service is down the stairs the customers expectations, dissatisfaction occurs and the probability of losing the customer to competitors increases (Anderson, 1973 38-39).In measuring customer satisfaction, a comparison between the expected and the perceived quality are objectively compared. The expected quality is what the customer expects from the company and which should be provided by the company. It is what represent the customers wishes, expectations and needs and is referred to as the Should factor (Wilson 1991 1 52). On the other hand, what the business actually gives the customer is what is referred to as the perceived quality. Perceived quality is known as the is factor (Wilson, 1991 152).The basic factors are those referred to as must have aspects or dissatisfiers. Basic factors do not afford the customer any satisfaction and they are deemed to be obvious. In other words, the characteristic is in essence what the customer wants and if this is not there then he would not even buy the product or service in the first place (Croteau, 2003 25-26). For example, any customer will expect that an institution of higher learning provides education as a prerequisite and is bound to take this for granted. This characteristic does not trigger any sort of excitement from the customer as it is considered normal (Kano, Seraku and Tkahashi, 1984 40). It is other factors that drive the excitement towards making a particular choice. This leads us to the excitement factors which are also known as satisfiers. These factors are the attractive characteristics of a good or service meant to generate delight in the customer (Croteau, 2003 26). They are also considered as the factors that distinguish an organisation from its competitors. It is these same features and characteristics that an organisation should emphasise on when advertising their goods to prospective customers so that they choose them over their competitors. Finally, the performance factors serve the purpose of providing the explicit needs of the customer (Conant, 2003 7). When the performance is high or when the customers needs are completely met, the result is customer satisfaction. If there is low level of performance however, customer dissatisfaction results and this could cause detrimental effects on the company through loss of customers.2.1.2. Significance of customer satisfactionNumerous empirical findings are of the view that customer satisfaction forms the basis of establishing competitive advantage. It is through cus tomer satisfaction that the business can be assured of a bright future through repeat sales (Kano, Seraku, Takahashi and Tsuji, 1984 39-41). Customer satisfaction helps to gain loyalty and hence retain current customers besides attracting new customers to a company. Unsatisfied customers are likely to leave because as Wilson (1991 156) notes, only four out of every one hundred customers come back to complain. Instead, they go on and switch companies opting to keep the discontentment to themselves. This is to mean that satisfaction is extremely vital for the survival of any business and should therefore be highly regarded. Stefanou and Sarmaniotis, 2003 619) contend with the fact that retaining the existing customers is much easier than attracting new ones hence the need to build strong customer relationships through striving to satisfy their needs and meeting their expectations. Consumer satisfaction is therefore vital for any organisations success and should be taken seriously. Wit h this kind of knowledge, business strategies are now being inclined towards customer satisfaction. To do this, Customer Relationship Management has been embraced by many businesses (Grant and Anderson, 2002 36 Conant, 2003 21 Light, 2003 607 Kirker, 1994 12).Recommendations made by customers are said to attract almost the same number of customers that the business attracts on its own. This happens through recommendations. Wilson (1991 103) notes that every satisfied customer is bound to say something positive about the product to her friends and relatives. These individuals could eventually end up being loyal customers to the business thus increasing customer base. Dissatisfied customers will complain and talk ill of the product or service such that prospective customers are discouraged and may never take the companys product following negative remarks from those that had used it before (Wilson, 1991 157).2.2. Understanding Customer Relationship ManagementThe survival of any busine ss is to a large extent determined by the level of customer satisfaction. This understanding has seen the rise in the customer-centrism strategy as a means to retain and attract new customers (Patterson, 2007 5-6). The rise in globalization has led to high levels of competition so that every business must work towards addressing customer needs to keep them from turning to competitors. According to Oliver (1996 88) customers are likely to move to competitors if they feel that they are not obtaining what they want. Loss of customers could be detrimental since a business cannot exist without customers. In this kind of competition for customers, the notion of Customer Relationship Management (CRM) has gained an important role in business management. Light (2003 603-604) refers to CRM simply as the management of company-customer relationships while Stefanou and Sarmaniotis (2003 617) call it relationship marketing. Seeman and OHara (2006 25) add that CRM aims at increasing customer satis faction by customizing the service provided to each consumer. Further, Seeman and OHara refer to CRM as the process by which business information and consumer information are brought together through a centralized system.Major components of CRM include communication management, marketing, recruitment, customer support and service among others. It is a strategy that places the customer as the major focus in the organisation. Stefanou and Sarmaniotis (2003 613-617) refers this as a customer-centric strategy where understanding the customer life cycle is essential. There is also need to understand the ever changing customer needs triggered by changes in lifestyles and income changes. CRM has often been described as a shift from the transaction-specific to cumulative customer satisfaction through relational orientation (Raab, 2008 132). In order to satisfy this prerequisite, CRM has been divided into two major procedures the operational function and the analytical function. While the op erational function involves the collection of data from customers, the analytical function is concerned with analysis of data in order to understand the customer needs so that they can be effectively addressed (Peelen, 2005 63). Data can be collected through the use of interviews and questionnaires, customer feedback, complaints and physical reactions among others. Using this kind of information, the customer service department can easily determine whether customers are satisfied with their products or not (Kirker, 1994 14). If they are not satisfied, strategies aimed at addressing the various needs must be formulated. With the increasing level of globalisation, technological advances are being strongly felt in the business world. Further, customer relationships have become more complex due to consumer mobility and the rise of suburbs (Milliron, 2001 52). Customer tastes and preferences are changing by the day as people embrace the modern world. In response to this, more companies h ave taken up technology-led techniques to further enhance their performance. It is for this reason that the CRM systems have emerged and companies are now turning from the manual CRM to computerised CRM.2.3. Customer relationship management systemsThe use of Customer Relationship Management in institutions of higher learning is a relatively new genre of technology operations whose popularity is growing at a high rate (Light, 2003 605). The application which is computer-based has aided in making sure that the relationship between customers and businesses can be effectively managed (Peelan, 2005 79). Information Technology advances have been a catalyst in customer relationship management systems. Traditional analysis of data is slowly becoming outdated and the use of software to perform such duties is being adopted by the day. CRM systems have gained widespread popularity especially with the so called forward thinking managers(Croteau, 2003, 29). These systems not only analyze custome r needs effectively but also make work easier for managers thus saving the time required for data analysis. Bradshaw and Brash (2001 522) define CRM systems as a combination of discrete software tools which serve the purpose of enhancing customer satisfaction, reducing costs, identifying new opportunities, increasing revenue and attraction new customers among others. They note that organisations have no reason to fear initial costs of acquiring these systems because the benefits to be gained in the long-run exceed the costs incurred in the acquisition. Research shows that sophisticated technology has brought about the emergence of more advanced CRM systems (Milliron, 2001 51). Further, it is notable that organisations that are currently using these sophisticated CRM technologies are gaining competitive advantage over their competitors who make use of basic data collection approaches (Abbott, Stone and Buttle, 2001 27). Information Technology has aided companies to effectively custom ise their customer care procedures so as to ensure that they are well served.Following the emergence of CRM which aims at individualising customer needs, companies are now demanding technologies which make it easier to keep records about individual customers. This eliminates high numbers of record which have to be retrieved every time a customer visits the business (Bull, 2003 31).Using the various CRM systems available in the market, it is possible for companies to collect all available data about a certain customer which is then saved in the company database. Whenever an enquiry is made by this customer, the customer care representative just needs to feed the necessary details in the database to retrieve everything about the consumer (Grant and Anderson, 2002 26). This way, it is becomes easier to address these customers needs depending on the situation at hand.The use of web technology is one of the most prevalent applications of CRM technology (Milliron, 2001 52). Savvy managers have realised the high rate at which the world is suddenly becoming computerized. The ease of internet navigation and development of broadband services has turned customers into active internet users. To maximise on this, internet marketing has emerged with more companies now displaying their goods in popular web pages such as networking sites (Kotler and Fox, 199596). It is not only the goods that they advertise on the internet however, websites containing company information have been developed so that customers can easily access any information they desire from the website (Light, 2003 605). Most websites often have customer inquiry sections where questions can be asked and complaints deposited (Light, 2003 606). The use of chat rooms to answer customer questions directly from the help care desk is also used in certain sophisticated websites. While websites are likely to serve customers who are already familiar with the company, new ways of directing prospective customers have b een established. In popular web pages for example, clicking on a certain advertised good or service takes the prospective customer to the companys website where he or she can now access more information on about the company and other goods and services offered by the company. This is to mean that while company websites were previously used by companies to showcase their activities and other information about the company, they are now doubling up as marketing tools to retain existing employees and obtain new ones (Light, 2003 606).2.4. Customer relations in institutions of higher educationStarting the mid-80s and into the late 90s, many higher education institutions engaged themselves in restructuring and engineering their administrative operations so that costs were reduced and consequently better services could be provided (Grant and Anderson, 2002 24). The focus is slowly shifting from these operational changes meant to improve service delivery to identification of customer needs. These needs are then being used to identify the areas that need to be improved in order to effectively satisfy customers. This has been described as a proactive action because institutions can learn what their customers want then work towards satisfying these needs before they lose them to other institutions which meet such needs (Bull, 2003 593). Customer relationship management (CRM) is fast gaining popularity as more institutions realize that maintaining healthy relationships with customers is vital for business success. Organisations that make use of customer relationship management report increased sales resulting from the good relationships established with their customers (Croteau, 2003 29). Customer relations management (CRM) enables the analysis of past customer behaviour in a bid to anticipate future trends and hence do everything in their capacity to ensure that customer needs are met. While many institutions have embraced CRM, few have ventured into the use of customer relationship management technologies (Conant, 2003 3-5). For some, it is because of inadequate information about customer relationship management (CRM) systems while for others is because of fear of initial costs associated with installing such systems.Seeman and OHara (2006 26) note that at least 75 percent of the students entering higher education institutions have a substantial exposure to technology. The new generation of students are described as technology savvy students due to their undeniable contact with technology. As a result, their expectations about technology resources available in the institutions are very high (Milliron, 2001 16). From what they have learnt over the internet and other technology literature, technology has been used to make procedures easier for customers unlike when manual systems were used. In their minds, institutions of higher learning should fall under this group that has acquired these systems in order to serve them better. Their absence therefo re could frustrate their expectations which could culminate to serious consequences (Croteau, 2003, 31). For existing students, they could change schools and discourage their counterparts from joining the school. The use of CRM also serves the purpose of unifying the university or college administration such that the needs of customers can be catered for without having to move from one office to another.Many businesses today have now introduced websites through which they serve their customers needs. In the same trend, colleges and universities should take on this innovative method of communication to reach out to their customers without necessarily requiring them to visit the institution physically (Kotler and Fox, 1995 96). This reduces physical and geographical barriers through providing all the information that current and potential customers would like to know about the institution. In designing a website, the technician involved must collect all the information that the instit ution wishes to put on the site (Milliron, 2001 17). This information is then arranged in such a way that given links can lead the customer to the desired departments so as to access the required information.Chapter 3MethodologyIntroductionThis section of the paper quantifies the ability of the study to effectively satisfy the set objectives. Besides giving the procedures, methods and samples used in the study, it also outlines major limitations faced during the study.3.1. Research scopeThe essence of this study is to establish whether Customer Relationship Management Systems could be of help to higher education institutions. As such, the study delimits itself to the role of customer relationships in institutions of higher learning. The importance of Customer Relationship Management systems forms the basis for this study and hence the advantages of this strategy form a core subject of the study. Due to the large geographical coverage of institutions and financial constraints, only s chools in Madrid and Canterbia in Spain were used for the study.3.2. Data and data collectionCollection of data forms influences the outcome of the study to a large extent. For this reason, the data collection procedure was applied in the best way possible to enhance efficiency and to give the most accurate results. Both primary and secondary data were applied in the study.a) Primary data Factual information from the respondents was vital in making effective conclusions. To obtain this information, two separate types of questionnaires were set. These focused on current customers and potential customers. For simplicity, senior high school students who are most likely going to join universities and colleges after graduating were interviewed to determine the qualities they considered important in a college. Further, they were required to suggest the various components they would like incorporated in the college and university CRM systems. Current customers included students at colleges , staff, parents and alumni. The questionnaire directed at this group was aimed at finding out the application of CRM in their schools and how they thought it could be better improved to by incorporating technology. For those whose schools had already adopted CRM systems, they were asked to give the advantages they had witnessed and the difference with what they heard from colleagues in other schools not using CRM systems. Questionnaire were read out and filled by the researcher as the respondent gave their views.b) Secondary data Equally important was the use of secondary data which gave the study a theoretical background. Without the use of books, journals and periodicals among other written works, there was no way of justifying the concept of Customer Relationship Management Systems. The literature review in particular was solely dependent on previously published works. As such, secondary data was highly employed in the study.3.3. Sample selection, technique, and sizeThe study sa mple consisted of ten college students, ten university students, twenty high school seniors, twenty staff members and a random selection of twenty parents and alumni of various colleges and universities. Due to the large population of probable respondents, a method for selecting a sample had to be identified. The strategic sampling method was used to identify respondents for the study.3.4. Ethics of the research methodologyBefore the beginning of the study, an objective of reducing respondents compromise as far as possible was set. The views contained in the questionnaires were for research purposes only and no third party was allowed to come into contact with them. With such an assurance, respondents felt free to give out information considered sensitive. For privacy purposes, no respondent was required to give out his or her name during the interviews. This raised confidentiality as required in scholarly research.3.5. Limitations of the studyAs mu