Institutional Memory: When the customer interacts with the company, everyone in the enterprise is aware of prior inter actions, outstanding issues and pending opportunities.Value Segmentation: Segmentation is based in customer needs, preferences, behaviors and economic potential, which provides the basis for resource allocation decisions in marketing, sales and service.Therefore, it may be more useful to think of CRM as a wide-ranging and flexible process that integrates the three areas of marketing, sales and customer support through 10 key principles. CRM systems help firms strengthen customer relationships in a myriad of ways and forms, across a variety of different industries. However, there is no one way to approach CRM. This allows employees in sales, customer support, and marketing to make quick yet informed decisions on everything from cross-selling and up-selling opportunities, to target marketing strategies, to competitive positioning tactics. CRM systems integrate information from all data sources within an organization to give a holistic view of each customer in real time. Understanding CRM What is CRM?ĬRM, or Customer Relationship Management, is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. It evaluates the key factors involved in successful CRM implementations as well as the reasons why CRM implementations fail.
This report explores the different forms and goals of CRM across various industries. In spite of the high failure rate, enterprises still choose to take on that risk. Yet 70% of CRM projects fail in some way.
The market for CRM goods and services is expected to crescendo at $76 billion by 2005. Implementing CRM is a multi-million dollar corporate initiative. Hence the evolution of CRM, a combination of new technologies that enable companies to better manage their valuable customer relationships. While the quality of a company’s customer service is even more critical to a firm’s success and competitive advantage, the job of building lasting customer relationships has grown far more complex for most companies. Given the vast choices, customers dissatisfied with their bank, credit card company, or long distance carrier can easily switch to another. E-business tools help consumer and business customers evaluate diverse purchase options. Globalization has expanded customer choices by stretching a consumer’s reach across countries. Another reason behind this renewed interest is shift in the balance of power from suppliers to customers. In today’s business environment, the renewed interest in customer relationships is due to increasing competition for customers, as well as the widespread realization that customer retention and loyalty is just as important as customer acquisition. Combine this expectation for high quality service with an explosion of choices in providers of goods and services, from retail, to banking, to insurance.
THE GOAL OF CUSTOMER RELATIONSHIP MANAGEMENT IS TO PROFESSIONAL
Likewise, today’s customers expect consistent, professional service and support with every interaction, through any channel, from anywhere in the world. When settling a discrepancy in your credit card bill over the phone is a quick, painless affair handled by a courteous customer service rep – that’s excellent customer relationship management.Įnterprises are increasingly treating customer relationships as a valued business resource that needs to be managed, nurtured, and supported by information systems.
When the local bookstore knows you by name and can recommend new titles that you are certain to love – that’s good customer relations in action. Excellent customer service leads to customer retention, which is the lifeline of any successful business. The adage “the customer is king” is an age-old maxim of good business.
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