Building profitable customer relationship with CRM
CRM is the essential part of modern business management. CRM has received a lot of attention and come to occupy a central place as a vital strategy in organization. The ultimate purpose of CRM in any organization is to increase profit. In case of CRM this achieved mainly by providing better services to the customer than the competitors. Traditionally, customer service centers have always been regarded as cost centers. In the 80s, customer care was not as important as it is today. Many vendors even refused to obtain 800 numbers by which to welcome customer input and provide customer service. Slowly and gradually, the customer got the respect that he or she deserved. Outstanding customer service became the source of customer satisfaction without which no company could exist. Without an outstanding customer care strategy, no company can exist profitably. In the 90s companies began to improve on customer relationship management by making it more of two –way communication. Instead of simply gathering data for their own use, they began giving back to their customers not only in terms of the obvious goal of improved customer service, but in incentives, gifts and other perks for customer loyalty. CRM was now being used as a way to increase sales passively as well as through active improvement of customer service. Real customer relationship management began in earnest years of this century. As the software companies began realizing newer, more advanced solutions that were customizable across industries, it became feasible to really use the information in a dynamic way. Instead of feeding information into a static database for future reference, CRM became a way to continuously update understanding of customer needs and behavior. The internet played a vital role to the development of these huge databases by enabling offsite information storage. Earlier, companies had difficulty supporting the huge amount of information, the internet provided new possibilities and CRM took off as providers began moving toward internet solution. Today, CRM is still utilized most frequently by companies that rely heavily on two distinct features like customer service and technology. What is CRM?
CRM is a business strategy that aims to understand, anticipate and manage the needs of an organization’s current and potential customers. CRM is a shift from traditional marketing as it focuses on the retention of customers in addition to the acquisition of new customers. Successful organizations use three steps to build customer relationships Determine mutually satisfying goals between organization and customers Establish and maintain customer relation
Produce positive feelings in the organization and the customers Benefits of CRM
CRM reduces the cost because the right things are being done i.e effective and efficient operation CRM enables instant market research as well as opening the lines of communications with customers gives direct constant market reaction to the products, services and performance far better than any market survey. Increased customer satisfaction, because they are getting exactly what they want i.e meeting and exceeding expectation. Long term profitability and sustainability
CRM ensures that the focus of the organization is external.
Purpose of CRM
The focus of CRM is on creating value for the customers and the company over the longer term When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their need. CRM enables organizations to gain competitive advantage over competitors that supply similar products or services.
Why is CRM important?
Today’s businesses compete with multi products offering created and delivered by network, alliances and partnerships of many kinds. Both retaining customers and building relationship with other value adding allies is critical to corporate...
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