Customer Retention

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| ACADEMY OF ECONOMIC STUDIES BUCHARESTFACULTY OF BUSINESS ADMINISTRATION IN FOREIGN LANGUAGES____________________________________________________________________________________________| |

INFORMATICS

Customer Relationship Management
Maximizing customer retention:
Microsoft Dynamics CRM

Author:
Diana Stefan
Group 3

Bucharest
2013

Rapidity and adaptability of changing are key words of the third millennium business. Information, submitted in real time, allow companies to anticipate their client’s needs and evolutions of worldwide markets, in order to cope with the stronger competition. Organizations discover now the fact that in the centre of each organization strategy there is the client. The new economy assumes strong, lasting relationships with partners, the way of managing these with the new information technology being a major element of growing firm’s competitiveness.

CRM is about people on both sides of an exchange understanding each other. The challenge is to find the utility or satisfaction from that exchange. Divergent perspectives on Customer Relationship Management are present in the related literature: CRM as a process, as a strategy, as a philosophy, as a capability and as a technology.

When a company knows what their customers want and responds with a consistently excellent customer experience, they create loyal and profitable relationships.
The best loyalty programs proactively analyze customer behaviour in order to identify and address at-risk customers before they defect. However, when the loyalty program is not successful, it is usually up to the contact center to “save” the customer. Effective customer retention programs are enabled by customer relationship management and analytics solutions. A loyal customer base is a critical goal for all businesses. In the last few years, companies have invested billions of dollars on systems, analytics, marketing programs and other initiatives to create an outstanding customer experience, hoping to build customer loyalty. The challenge is that even if an enterprise succeeds in delivering a consistently outstanding service experience across all channels – direct sales, kiosks, ATMs, branches, retail outlets, online and contact centers – there is no guarantee that a customer will remain loyal.

The contact center plays a crucial role in retaining customers throughout the customer life cycle, particularly at the pivotal point when a customer is reconsidering the value proposition of the company’s products and services. If agents are well trained, empowered to act, and have the necessary systems and data to determine the right actions, they will be able to retain at-risk customers by meeting or exceeding their expectations.

The contact center is the focal point of customer interactions representing the enterprise to its customers. The contact center must have the support of all departments within the company for a customer retention program to live up to its potential.

Consistently providing outstanding service to thousands or millions of customers requires a systems infrastructure that gives users a complete, cross-functional, real-time view of each customer’s relationship with a business. Agents need access to all information about tenure, transaction history, pricing, products, services, marketing programs, retention offers, etc. Three solutions are essential for empowering agents to retain customers. The first is a CRM solution that provides a complete view of every customer’s relationship with the company, including a history of all contacts and interactions. The second are analytics applications that evaluate, segment and identify at-risk customers and the best way to retain them. The third is a CCPM solution that aligns the goals of the contact center with the enterprise, provides scorecards and dashboards to measure agent and departmental performance, and identifies the reasons why customers want to defect.

Microsoft...
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