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Customer Relationship Management

Customer Relationship Management

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Published by Prity Mahato

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Published by: Prity Mahato on Jan 25, 2012
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Why crm has been taken as a strategy by most of the business organization?

customer relationship management CRM - principles, strategy, solutions, applications, systems, software, and ideas for effective customer relationship management Customer Relationship Management, or CRM, is an essential part of modern business management. This CRM article is provided by Ellen Gifford, who specialises in helping organizations develop excellence in CRM, and this contribution is gratefully acknowledged. What is Customer Relationship Management, or CRM? Customer Relationship Management concerns the relationship between the organization and its customers. Customers are the lifeblood of any organization be it a global corporation with thousands of employees and a multi-billion turnover, or a sole trader with a handful of regular customers. Customer Relationship Management is the same in principle for these two examples - it is the scope of CRM which can vary drastically.

CRM focuses on the relationship Successful organizations use three steps to build customer relationships: determine mutually satisfying goals between organization and customers • establish and maintain customer rapport • produce positive feelings in the organization and the customers

how CRM impacts on the organization CRM can have a major impact on an organization through:

.reduces as services and relationships improve. referrals to new customers increase from increasing numbers of satisfied customers.a major cause of stress . services and performance. and little more. Perhaps there would be only a single point of contact between one person on each side. even if the customers' organization contained many staff. etc). CRM enables instant market research as well: opening the lines of communications with your customers gives you direct constant market reaction to your products. and vice versa. and functional requirements (distribution. Effective CRM also reduces staff stress. Modern CRM theory refers to the idea of 'integrating the customer'. not want the organization can make • highlighting competencies required for an effective CRM process • why does the organization need CRM? The ultimate purpose of CRM. and overall the organization's service flows and teams work more efficiently and more happily. This new way of looking at the business involves integrating the customer (more precisely the customer's relevant people and processes) into all aspects of the supplier's business. is to increase profit. far better than any market survey. This implies a relationship that is deeper and wider than the traditional 'arms-length' supplier-customer relationship. customer churn rates reduce. because attrition . like any organizational initiative. demand reduces on fire-fighting and trouble-shooting staff. quality. finance. a good CRM capability will also reduce costs.shifting the focus from product to customer • streamlining the offer to what the customer requires. sales. The traditional approach to customer relationships was based on a simple transaction or trade. In the case of CRM this is achieved mainly by providing a better service to your customers than your competitors. CRM not only improves the service to customers though. All communication and dealings would be between these two people. simply because you hear about things that without CRM would have stayed hidden). departments. Good CRM also helps you grow your business: customers stay with you longer. wastage. and complaints (although you may see some increase initially.

benefits of effective CRM There are significant business benefits which accrue from an effective. 2. etc . hence it is very easy for track a customer accordingly and can be used to determine which customer can be profitable and which not. because they are getting exactly what they want (ie. This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business.people. These include:  reduced costs. such as might be affected and benefited by the particular supply. etc. systems.The modern approach to customer relationship management is based on satisfying all of the needs . Looking at some broader perspectives given as below we can easily determine why a CRM System is always important for an organization.)  increased access to a source of market and competitor information  highlighting poor operational processes  long term profitability and sustainability Forward thinking organizations understand the vital need to maintain a strategic focus on CRM and to resource and manage it appropriately. processes.. A CRM system consists of a historical view and analysis of all the acquired or to be acquired customers.across the customer's organization. 1. exceeding expectations)  ensuring that the focus of the organization is external  growth in numbers of customers  maximisation of opportunities (eg.. CRM contains each and every bit of details of a customer. integrated Customer Relationship Management approach. . effective and efficient operation)  increased customer satisfaction. because the right things are being done (ie.. referrals. increased services.

The strongest aspect of Customer Relationship Management is that it is very cost-effective. This increases the chance of getting more business which ultimately enhances turnover and profit. 6. 7. In today’s commercial world. If the customer is satisfied they will always be loyal to you and will remain in business forever resulting in increasing customer base and ultimately enhancing net growth of business. This helps in focusing and concentrating on each and every customer separately. The process first starts with identifying a customer and maintaining all the corresponding details into the CRM system which is also called an ‘Opportunity of Business’. ------------------------ . All this is very easily and efficiently done by an integrated CRM system. This reduces the process time and increases productivity. 4. Hence in the era of business every organization should be recommended to have a full-fledged CRM system to cope up with all the business needs. Efficiently dealing with all the customers and providing them what they actually need increases the customer satisfaction. practice of dealing with existing customers and thriving business by getting more customers into loop is predominant and is mere a dilemma. 8. customers are grouped according to different aspects according to the type of business they do or according to physical location and are allocated to different customer managers often called as account managers. All the details in CRM system is kept centralized which is available anytime on fingertips. 5. A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. The Sales and Field representatives then try getting business out of these customers by sophistically following up with them and converting them into a winning deal. The advantage of decently implemented CRM system is that there is very less need of paper and manual work which requires lesser staff to manage and lesser resources to deal with. Installing a CRM system can definitely improve the situation and help in challenging the new ways of marketing and business in an efficient manner. In CRM system.3. The technologies used in implementing a CRM system are also very cheap and smooth as compared to the traditional way of business.

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