‘AN OLD WINE IN ANEW BOTTLE’
Customer relationship is not a new concept; companies have been interacting and dealing with customers since the inception of trade. Earlier more focus and attention was on product and services instead of customer centric.
With increase in competition because of globalization and usage of internet changed the picture of business. Customers have variety to choose from, more knowledge about the companies and products surely has titled power at customers’ side. With this scenario, companies realize the need of treating customers with utmost care. Therefore, searching for innovative ways to manage relationships effectively, not only to acquire new customers but also to retain the existing one.
CUSTOMER RELATIONSHIP MANAGEMENT:
“CRM is the process of managing detailed information about individual customers and carefully managing all the customer ‘touch points’ with an aim of maximum customer loyalty”
Acquiring new customers can cost five times more than costs involved in satisfying and retaining current customers. More companies are recognizing the importance of satisfying and retaining customers, which constitute the company’s relationship capital
To retain the customers’ better approach is to deliver high customer satisfaction. Customer relationship management is about taking a long term approach to building relationships with customers.
In olden days, business people and organizations would know their customer base from seeing them on a daily basis and learning their preference based on the relationship they shared with the customers. CRM is emerged as critical for organization in 1960’s where marketers found that 4p’s of marketing framework-product, price, place and promotion were less valuable without ongoing relationships with customers. Companies started putting customers in the middle of marketing program.
In early days of CRM, there was no technology to support what companies were doing. CRM is not new, over the years companies has had to figure out how to build relationships with customers and lead to brand loyalty. The goal in CRM is to evolve from a mass marketing model, which was on product centric market structure to customer centric structure. ESSENCE OF CUSTOMER RELATIONSHIP MANAGEMENT:
Managing customer relationships successfully means learning about the habits and needs of your customers anticipating future buying patterns, finding new opportunities to add value to the relationship. Successful companies make the relationship something the customer values more than anything else they could receive from the competition.
Company experience with customer not only with transactions but also with interaction like website visit, phone, call center and by direct mail. CRM helps in developing marketing programs that make sense to each customer segment, support cross-selling and customer retention programs, help to maximize the value of each customer’s interaction and deliver a consistent branding message by aligning products and services within each channel.
CRM provides an integrated view of a company’s customer to every one in the organization so that customer can be serviced effectively.
AIMS OF CUSTOMER RELATIONSHIP MANAGEMENT:
CRM helps companies to gather and access information about the customers’ buying histories, preferences, complaints. It allows tracing the needs of the customers and means to satisfy them effectively.
The following are the aims of CRM:
• Increase efficiency of the organization
• Ability to provide quicker response to customer queries and complaints • Getting insight of customer needs
• Providing more cross-selling opportunities
• Organized information to manage and lead
• Reduction in cost and increase in productivity
• Receiving customer feedback
• Providing common platform for customer communication and interaction....