All the companies want to increase their rate of sales and quality of their services/products continuously to higher and higher points.
Hence, nowadays, it is almost impossible to unlink CRM and success of the business.
Now, let’s understand what exactly is Customer Relationship Management?
Peter Drucker rightly said “The purpose of a business is to create and keep a customer.” this is exactly what CRM is all about!
Customer Relationship Management (CRM) is an approach to manage a company’s interactions with current and future customers. It often involves use of technology to organize, automate, and sync sales, marketing, customer service and technical support.
Broadly, it’s the relationship between the organization and its customers. Customers are the backbone of any organization, be it a global corporation or a small trader with a handful of regular customers.
Successful organizations make use of three basic steps to build customer relationships:
1 CRM conditions
To have a good CRM, we need to consider set of conditions such as- wants and needs of both the parties:
2 Need of CRM
A good CRM grows our business due to following reasons:
Let’s understand this better with a simple example:
Previously, the old viewpoint in the industry was:
But now, the new viewpoint in the industry is:
3. Benefits of effective CRM
There are significant business benefits that flow from an effective, integrated CRM approach. These include:
Basic underlying principle to a good CRM:
The cost of keeping existing customers is a tiny fraction compared to the cost of acquiring new customers!
About Author:
Geetika Varma is a consultant in Systems Plus Pvt. Ltd. Within Systems Plus, She actively contributes to the areas of Technology and Information Security. She can be contacted at: geetika.varma@spluspl.com
Hence, nowadays, it is almost impossible to unlink CRM and success of the business.
Now, let’s understand what exactly is Customer Relationship Management?
Peter Drucker rightly said “The purpose of a business is to create and keep a customer.” this is exactly what CRM is all about!
Broadly, it’s the relationship between the organization and its customers. Customers are the backbone of any organization, be it a global corporation or a small trader with a handful of regular customers.
Successful organizations make use of three basic steps to build customer relationships:
- Decide on mutually satisfying goals
- Set up and maintain customer rapport
- Generate positive feelings in the organization as well as for the customers
1 CRM conditions
To have a good CRM, we need to consider set of conditions such as- wants and needs of both the parties:
- For organizations- Make profit to survive and grow
- For customers- Good service, quality products and an acceptable price
2 Need of CRM
- To increase profit- By providing better services to customers than our competitors
- Reduced costs, wastage, and complaints
- Reduced staff stress as services and relationships improve
- Instant market research, as customers give us direct and constant market feedback on our products, services and performance, far better than any market survey.
A good CRM grows our business due to following reasons:
- Customers stay with us longer
- Referrals to new customers increase, from increasing numbers of satisfied customers
- Organization’s service flows are more efficient as teams work happily
- Organizations should aim to be more customer-centric.
Let’s understand this better with a simple example:
Previously, the old viewpoint in the industry was:
- ‘Here’s what we can make – who wants to buy our product?’
But now, the new viewpoint in the industry is:
- ‘What exactly do our customers need?’ and
- ‘What needs to be done to be able to produce and deliver it to our customers?
3. Benefits of effective CRM
There are significant business benefits that flow from an effective, integrated CRM approach. These include:
- Costs reduce (effective and efficient working)
- Customer satisfaction
- Growth in numbers of customers
- Maximization of opportunities (due to referrals, increased services, etc.)
- Improved access to a source of market and competitor information
- Highlights poor operational processes
- Profitability and Sustainability
Basic underlying principle to a good CRM:
- Organizations who have momentary relationships with customers consequently, have to shell out a lot of money in finding new customers.
- Hence, relationships with customers should be –
- Continuous
- Cooperative, and
- Made for the long term.
The cost of keeping existing customers is a tiny fraction compared to the cost of acquiring new customers!
About Author:
Geetika Varma is a consultant in Systems Plus Pvt. Ltd. Within Systems Plus, She actively contributes to the areas of Technology and Information Security. She can be contacted at: geetika.varma@spluspl.com
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