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The impact of customer relationship management on organization profit of In Soma
29. September 2019 at 09:27
The purpose of this study to investigate the impact of customer relationship management on the profit of organization In Somali. The study used the domestic theory to analyze data by applying statistical package for social science (SPSS version 20.0) special regression model tool was used our study.

 The result The CRM are high influence Organization profit, so that CRM was the responsible employee retention. Somali business have not use Management information system. Also the researcher finding Somali full capacity internet. Also the researcher finding Somali have not use e-commerce, the reason the people did not known Online Business and mostly citizen have not master card or credit card.   The main objective of the study  to investigate the effect of CRM on the profit of organization in Somali and to explore the CRM important of business in Somali. Also the researcher finding Somali have not use e-commerce, the reason the people have no Knowledge in Online Business and mostly citizen have not master card or credit card. Somalia companies have not department of CRM  to keep customer satisfaction and luck of Management information system .


Modern marketing shows for more developing and increase profitability of organization to produce good product, then attractive the whole of customer, the only way to get beneficial customer, marking relationship. Although the customer was dived two part internal customer and external customer, the internal customer is employee of company so that employee partially is asset of organization because the organization depend on, the organizing must keep morality of their employee if they do not keep the productively become low so that the company must mark policy to improve their employee and motivation then training to increase their talent  and skills , that is double benefit of organization and employee, because they increase their productivity . 


External customer is buyers the buyers they buy of organization, so that organization must the collect date relating their customer, in fortunately Somali Company have not management information system that reason was responsible luck of good customer relationship.


Profit is a financial benefit that is realized when the amount of revenue gained from business work reduce the expanses, and also say the profit when total sales revenue is greater than total cost, for example the total sales of Geele general  trading company was $100,000  and the total cost was $ 75,000  so that the researcher say the profit of this  Geele general  trading company become $25,000. The researcher justify the amount of profit of this company comes total sales reduce total cost to gain profit of company if the amount of sales was greater than the amount of cost the amount gain we called profit, if the amount of sales is less than the amount of cost we called loss and if they same we called break- even point means no gain no loss.



Problem statement 

These days Somali were come disbar and they marked a lot of investment and increase economy, so they created small business and projects mostly they establish hotel like peach view restaurant  they arise level of completion of the business, and also increase high level of customer turnover, furthermore increase customer acquisition, cost and growing customer expectation. There for most of Somali business have  not focus on Customer relationship management system and finally the problem of this study seeks to show the relationship between customer relationship management system performance of organizational in Somali Business.



Objective of the study 

 To investigate the impact CRM on benefit of business in Somali 

 To explore the CRM important of business in Somali



Scope of the study   

The study was exploring the impact customer relationship management on the profit of organization In Somali 

REVIEW OF LITERATURE

Customer Relationship Management 

According to Russell, S. Winner (2001), Customer Relationship Management is the new Intonation of marketing.


Businesses like Oracle have come up with services and products and Keyword- Customer relationship management system and Profit. Modern marketing shows for more developing and increase profitability of organization to produce good product, then attractive the whole of customer, the only way to get beneficial customer, marking relationship.


Although the customer was dived two part internal customer and external customer, the internal customer is employee of company so that employee partially is asset of organization because the organization depend on, the organizing must keep morality of their employee if they do not keep the productively become low so that the company must mark policy to improve their employee and motivation then training to increase their talent  and skills , that is double benefit of organization and employee, because they increase their productivity . 


External customer is buyers the buyers they buy of organization, so that organization must the collect date relating their customer, in fortunately Somali Company have not management information system that reason was responsible luck of good customer relationship.


Profit is a financial benefit that is realized when the amount of revenue gained from business work reduce the expanses, and also say the profit when total sales revenue is greater than total cost, for example the total sales of Geele general  trading company was $100,000  and the total cost was $ 75,000  so that the researcher say the profit of this  Geele general  trading company become $25,000. The researcher justify the amount of profit of this company comes total sales reduce total cost to gain profit of company if the amount of sales was greater than the amount of cost the amount gain we called profit, if the amount of sales is less than the amount of cost we called loss and if they same we called break- even point means no gain no loss.


According to Al-Azzam (2016), he say the customer relationship management First and leading, to form customer-oriented behaviors, organizations have to improve an suitable working environment for service in work. For example, giving staff with the current tools, and technology, customer satisfaction pursuing and complaints management systems, moving leadership, and right rewards systems can all make these behaviors (Mechinda & Patterson, 2011).


Therefore, the achievement of CRM close depends on the vigorous involvement of the employees in the organization themself (Boulding, Staelin, Ehret, & Johnston, 2005; Payne, 2006; Tamilarasan, 2011). In finish, the customer-orientation strategy is one of an organization’s resources to increase customer satisfaction and business income and is also a very significant measurement.



Profit 

According to Rakowski (2005), he say the main profit of organization to gain customer relationship more sales revue increase level of productivity and also have more business values like reduce direct marketing cost because when use the customer relationship management can easily know customer data if they complain or mark order and so help to contact and keep their relationship and attractive new customer, and increase customer satisfaction, then used the churn rate, the customer churn  reduce as sales , service and marketing better respond to customer needs so that is measurement number of customer who stop using or purchasing product or service from the organization. That can track customers through the World Wide Web and be able to forecast their forward moves wants and needs.


According Kotler (2003) he say the uses customer relationship management can changeable with customer relationship marketing. He says these CRM aim is to produce high excellence equity which he called customer equity. According Rust, et al (2001) further differentiates the three sector of customer equity, relationship equity, brand equity and value equity. 


 Researchers argue that CRM cannot be effective even if the organizations enjoy the most modern technology and adapt a customer - oriented way, unless the project is finally integrated by them (Sin et al., 2005; Yim et al., 2005). Further, as a confirmation for this point Ku (2010) stresses that CRM success requires effective service and suitable operation procedures, rather than only technological systems.

According to Al-Azzam (2016), he say the customer relationship management First and leading, to form customer-oriented behaviors, organizations have to improve an suitable working environment for service in work. For example, giving staff with the current tools, and technology, customer satisfaction pursuing and complaints management systems, moving leadership, and right rewards systems can all make these behaviors (Mechinda & Patterson, 2011).Therefore, the achievement of CRM close depends on the vigorous involvement of the employees in the organization themself (Boulding, Staelin, Ehret, & Johnston, 2005; Payne, 2006; Tamilarasan, 2011). In finish, the customer-orientation strategy is one of an organization’s resources to increase customer satisfaction and business income and is also a very significant measurement.



The Importance of CRM to an Organization  

The primary focus of any CRM strategy is to empower the organization to generate and retain profitable customers that help the organization  (Swift in Ngai, 2005:583). Most strategies advance around three features, specifically, customer acquisition, customer profitability and customer profitability, due to the reduced costs linked with retaining customers rather than obtaining new.


Customer profitability  

Customer profitability tracks the monetary performance of businesses with respect to all the costs related with a business (Gordon, 1998:29). Profitability is strong-minded in the light of the generation value of the purchaser to the organization, pleasing into account the income and expenses associated with each customer over time (Gordon, 1998:146). The tracking of profitability is made more accurate through the use of technology


The evaluation of Customer relationship management itself is not a new idea but is now applied due to recent fees in initiative software technology. A result of sales force robotics (SFA) tools, CRM is often referred to in the literature as one-to-one ad varnishing (Peppers and Rogers, 1999). SFA software automates routine tasks such as tracking customer.


  Although one of the most actual ways to exploit sales revenue opportunities is by optimizing the advertising mix. But in instruction to do that, marketing sections need end-to-end perceptibility into marketing data through a united CRM application and this application work online needs internet so that Somalia have not tool like enterprise system and whole of management information system .



Benefits of CRM 

The following lists of wanted CRM benefits were collected and short from an extensive survey of fresh CRM lessons (Keith et al., 2008): 

Improved ability to target profitable customers, integrated offerings across channels and improved sales force efficiency and effectiveness; and according hemshy (1987)  he say there is mutual relationship department of sales, supporters and marketing like this shape 

and this figure illustrate customer relationship management are contact sales are and center call and marketing so the CRM were reduce direct cost of marketing, but Somali Business mostly they use Radio advertising and TV, as while as this year 2017 are increase number of firms use social 

Media like face book to show their product and service into community, which help to reduce direct advertising cost.  



Research methodology 

SAMPLE SIZE the sample frame of the research refers to the individuals of the total population to Be questioned, thus, the sample size of this research was be 35 respondents including both lower and Higher staff, besides, the researcher was choose this sample size based on the observation made by (Daniuel &Terye, 1979) that sample of (30) and above is enough to make inference about the entire Population. 

SAMPLEPROCEDURE

The sampling procedure that the researcher was use in this study was be non-probability sampling 

Expressly, convenience sampling technique was be used and this technique is intended 

To solicit information from the respondents who are available and wising to take division in the 

Study. Non-probability sampling of researcher 



Is a sampling procedure in which the individual members of the population have not equal chance to select? 

Although research instrument, this study was employ questionnaire tool to collect data from the respondents and therefore the 

Researchers was utilizing developed questionnaire. The researchers was develop a questionnaire

RESULT AND DISCUSSION 

 In the following table, descriptive analysis shows the Mean. Value stands highest average and stander deviation

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Statistic Statistic Statistic Statistic Std. Error Statistic

p1.1 gender 35 1.00 2.00 1.2857 .07748 .45835

p1.2 age 35 1.00 2.00 1.7143 .07748 .45835

p1.3 status 35 1.00 3.00 1.7429 .08543 .50543

p1.4 experience 35 1.00 3.00 1.8857 .12815 .75815

p1.5 education 35 1.00 4.00 2.2286 .10913 .64561

Valid N (list wise) 35


The researcher shows this descriptive statistics the number of responded and show the stand division.  

Model Summary


Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics Durbin-Watson

R Square Change F Change df1 df2 Sig. F Change

1 .568a .322 .146 1.05918 .322 1.833 7 27 .122 2.685



And this model illustrate the influence of CRM of the profit of organization so that shows R square ( 0.322) , and so Adjust R Square ( 0.146), this study researcher was get profit of organization high impact the CRM .Shows there is no CRM in Somali 



Main finding

The CRM are high influence Organization profit, so that CRM was the responsible employee retention. Somali business have not use Management information system. Also the researcher finding Somali have not full capacity internet. Also the researcher finding Somali have not use e-commerce, the reason the people have not knowledge Online Business and mostly citizen have not master card or credit card.  Somalia companies have not department of CRM  to keep customer satisfaction and luck of Management information system 



This study has investigated the effect CRM on the profit of organization in Somali for the period which spanned last 10 years, the researcher use regression model tool was used our study, found the CRM are high influence organization in Somali.  The objective was to investigate the impact CRM on benefit of business in Somali  To explore the CRM important of business, Somalia companies have not department of CRM  to keep customer satisfaction.I recommends the 0ranazations select right workers then provide courses relate CRM I recommends to establish  any origination department of CRM 

I recommends to establish Management information system 

 




Cite This Article As: Abdisalan Ahmed Hussein Fidow. "The impact of customer relationship management on organization profit of In Soma." International Youth Journal, 29. September 2019.

Link To Article: https://youth-journal.org/the-impact-of-customer-relationship-management-on-organizati





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