Using electronic Customer Relationship Management to improve manufacturing processes

Abstract

The objective of this paper is to introduce a methodology for developing an e-CRM system that assists an aerospace manufacturing company to overcome the challenges of an e-CRM deployment. The underlying principles of CRM are well established ? those manufacturers that can effectively attract and retain the customers will see significant benefits on their profitability (Brickle 2002). Kalakota and Robinson (2001) stated that on average, companies lose half of their customer base every five years and that the cost of obtaining a new customer is five to ten times more than maintaining an existing one. Therefore, it is of strategic importance for a company to track customers' needs, behaviours, and lifestyles and use this information to create a specific value-proposition. The emergence of e-business and the global internet 'new economy', present opportunities and challenges for manufacturers to build strong customer relationships. The research study presented here demonstrates that adopting a structured methodology when implementing an e-CRM solution enhances the benefits of such a system. More explicitly, the companies involved achieved a customer transaction transparency, thus reducing instances of unresolved client transactions, eliminating duplication of effort and providing ease of access to clients and suppliers alike. The research methodology adopted was case study-based.