Customer Relationship Management (CRM)

Customer Relationship Management (CRM) is a strategy for managing all your company’s relationships and interactions with your customers and potential customers. It helps you improve your profitability.

Importance of Customer Relationship

  • Costs 6 times more to sell to new customer than to existing one.
  • Odds of selling a product to new customer: 15%;
  • odds of selling to existing customer: 50%
  • 70% of complaining customers will do business with the company again if it quickly takes care of service aspects.

Small business– possible to know customers on personal basis

Large business- many customers & different ways customers interact. Processes for sales, service & marketing- highly compartmentalized; do not share essential customer information.

CRM Systems Benefits

  • Integrate, consolidate & analyze customer data & distribute results.
  • Give complete view of  each customer.
  • Increases effectiveness of marketing campaigns.

Customer Relationship Management(CRM) Systems

CRM systems provide tools for answering :

  • “What is lifetime value of a particular customer”
  • “Who are our most loyal customers?“ and
  • “What do profitable customers want to buy?”

Firms use answers to:

  • Acquire new customers
  • Provide better services
  • To existing customers §Retain profitable customers

CRM Cycle

CRM Cycle has Five process stages:

  • Target & Marketing
  • Development of offerings
  • Sales
  • Superior Experience
  • Retention & Win back

A CRM System

Sales Force Automation

  • Help sales staff to focus efforts on most profitable customers
  • Assemble information about particular customer’s past purchases; helps make personalized recommendations.
  • Have capabilities for sales forecasting, territory management & team selling.

Marketing Module

Supports direct-marketing campaigns by providing capabilities for

  • Capturing prospect & customer data
  • Identifying profitable & unprofitable customers
  • Designing products & services to satisfy specific customer needs & interests

Customer Service Modules

Provide information & tools to increase efficiency of call centers, help desk & customer support staff.

  • Improved access to accurate customer information help call centers handle more calls/ day. Hence greater productivity.
  • Customer spends less time on phone restating his/her problem to customer service reps.

Business Value of CRM Systems

  • Increased customer satisfaction
  • Reduced direct-marketing costs
  • More effective marketing, and
  • Lower costs for customer acquisition & retention.

CRM Implementation Framework

  • Understand your Business & Customer
  • Do SWOT Analysis
  • Define CRM System Strategy for Your Organization
  • Make Your Organization Business Process Reengineer Ready
  • Plan Implementation of CRM System
  • Top Management Support

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