Table of contents

Elements Abstract ……………..…………………………………………….. Customer Relationship Management………………..…………… Aspects of CRM Operational CRM………………………….……………………. Collaborative CRM …..………………………………………… Analytical CRM………………………...………………………. Sales Cycle CRM & Sales Cycle Conclusion………………………………………………………….. References……………………………………………………………

Page No. 02 03

05 05 05 06 07 09 10

Page 1 of 10

If we look at the commercial world we may find that the significance of the retaining actual that is the existing customers and expanding the business by acquiring the potential customer is really very crucial. It would be found that the necessity of the retention of the existing customers could be very important if we look at the searching costs of the new customers and attracting them to the products of the business Customer Relationship Management (CRM) we can say that it is a process of establishing, developing, maintaining and optimizing the valuable long-term mutually relationships between consumers and organizations to get success in business and its sustainability. CRM helps business to know the customer well and retain and acquir them properly. The Sales Cycle is the sequence of phases that a typical customer goes through when deciding to buy something. As a rule, the sales cycle is described from the customer's perspective. Sales cycle is the core of the business as the main deal of the product is made by this cycle. So the sales effectiveness is very important for all the firms. Successful use of the CRM in the sales Cycle will cause the long term relationship with the customers. The customer needs must be converted to the product choice which will lead to the actual sale of the product and to do this the CRM is very essential to because we know that “Customer is the king”.

Page 2 of 10

Customer Relationship management
The success and competitiveness of a business depends on its magnitude of managing capacity of its relationships with its customers. So the popularity of the IT system which specially deals with the problems and needs of the customer are growing gradually. Customer relationship management (CRM) is one of the strategies of the business to gain access to the needs and wants of the customer and more deeply to say knowing what they want to build a concrete strong relationship with them and it is not merely an application of the technology. Because the CRM is more like as a business philosophy and no just a problem solving technical solution which deals with the customer effectively and efficiently. It is also true that the success of a CRM strongly depends on the use of the high technology. So if we go for defining the Customer Relationship Management we can say that it is a process of establishing, developing, maintaining and optimizing the valuable long-term mutually relationships between consumers and organizations to get success in business and its sustainability. Though the term CRM is loftily used in the marketing but unfortunately there is no any complete and well accepted definition of it. Thus to get a better understanding and knowledge about the CRM we can see it from three different perspectives: • • • Perspective- Information Technology (IT) Perspective- The Customer Life Cycle (CLC) Perspective- Business Strategy

1) CRM from the Information Technology (IT) Perspective. If we see the CRM from the technological standpoint we can get that the business purchases a collection or a bundle of software that will assists the business to attain its goals. Many businesses treat the CRM as like a software package and think that it is an IT-based customer management tool and it will support the sales people. IT is the building block and a crucial part of CRM because it helps the CRM to be strong and effective. 2) CRM from the Customer Life Cycle Perspective. The ultimate goal of the Customer Life Cycle (CLC) is to create and delivary the lifetime value of the customer that the company will take care of the product and services that the customers need in their entire lives. The CLC is not a product oriented philosophy, it is a marketing oriented philosophy. So we can say that the CLC is the combination of the key stages of a customer relationship with a business. Page 3 of 10

3) CRM from the Business Strategy Perspective. Now if we take the CRM as the business strategy viewpoint then it has a very significant impact on the marketing. There are three key phases in the business perspective of CRM these are the customer acquisition, customer retention and customer extension and three contextual factors and these are the marketing orientation, value creation and innovation IT.

Page 4 of 10

Aspects of CRM:
There are mainly three aspects of CRM and each can be implemented in isolation from each other: 1. Operational CRM: The operational CRM helps the sales, marketing and service process and these are the ‘front office’ business processes. In this part of the CRM each of the interaction with the customer are recorded in a database and it is used whenever the staffs of the business need. Keeping data history in the database has a very important benefit to the business and it customer that the customer can easily and conveniently interact with the different staff or channel and they do no need to repeat the history of their previous interactions 2. Collaborative CRM: Collaborative aspect of the CRM is used to directly interact with the customer to get the feedback, issue-reporting and so on. This type of interaction is done through the medium like web page, email, automated phone or SMS. 3. Analytical CRM: The purpose of the analytical CRM is to screen and examine the data collected by the operational and collaborative CRM aspects. Using these collected data the Analytical CRM design and program the marketing campaigns to effectively optimize the marketing. This aspect of CRM also analyses the behavior of the customer to know about their further need and wants and devising proper product for those. It also includes the pricing, new product development and other type of functions.

Page 5 of 10

Sales cycle:
The sales cycle is the sequence of phases that a typical customer goes through when deciding to buy something. As a rule, the sales cycle is described from the customer's perspective. The first phase of the sales cycle may be either the customer's perception of a product, or a perception of a need that the product might satisfy. The following steps include research and evaluation; the last step is the customer's decision to purchase the product.

Figure: The Sales Cycle

Page 6 of 10

CRM and Sales Cycle:
Sales effectiveness is very essential for the companies’ prosperities. The term sales effectiveness can be defined as the ability of the sales persons of companies to get a done the each phases of the sales cycle and by ensuring this completion in the right way and in a right timeframe. So here for sales effectiveness the CRM can play a major role. The CRM as its definition implies it is attached with the task to create a long term relationship with the customer in a way that both the customer and company will get value. So let’s look at the stages of the sales cycle and see where the CRM can play its role to boost the effectiveness of the sales cycle: The sales stages of the sales cycle may vary from company to company, so here the most important and the universal stages are depicted and described accordingly1. 2. 3. 4. 5. Need Recognition. Formulate Solution. Close Sale Deliver and Evaluate Establish Relationship

1. Need Recognition: One thing that is often the salespersons miss is to properly understand the customers and establishing relationship with them. Without doing so the sales cycle cannot reach its ultimate goal even the sales cycle cannot be stressed enough to do so. Here the CRM suggests that the salespersons should take the time to understand the customers well and build an effective relationship with the customer with whom they deal. The term taking time does not mean that spending lots of weeks and months to win and dine a customer. This means that taking the adequate time to establish a very long term relationship with the customer by understanding their needs and objectives and this must be done staying in the competition as well. 2. Formulate Solution: The most fatal error that the salespersons do that they just play the role of selling the product to the customer. But if they apply CRM here then to have an effective relationship with the customer, then they have to position them as the consultant of the customer not simply just as salespersons. Because to be successful through the sales cycle, the customer must see the salesperson as someone who can solve their problems. By creating a long term relationship the salespersons are actually creating the chance of long term repeat customer. Actually the customer meets the salespersons for a reason such as some problems or need that they must fill up. So as a problem solver the salespersons must understand what these problems or needs are. If the salespersons do not understand these then they will not have success in selling the product. The salesperson must generate the demand for their product to the customer which they need as their solution.

Page 7 of 10

3. Closing Sale: closing is a term that is used in sales which means the actual sale of the product. The sale mean the transfer of the ownership either physically or any other means or acquiring a signature of the customer as wanted by the salespersons. Here the sales persons should play a role of suggestor and should not create pressure on the customer. The customer must willingly pay for the product or give the signature. To do so the salespersons should ask the customer some positive questions like “do I have your authority to proceed with this order?” or “when would you like delivery?” or they may ask “would you like red or green?” etc. 4. Delivery and Evaluate: The delivery means to physically moving the product to the customers’ desired location or providing the means what the customer signed for. Here the salespersons should emphasize that the delivery must be on time and with customers’ convenience without any damage of the product and the product must be as like as what the customer seen at the time of purchase. After the delivery the salesperson should enquire that the product are useable and is not doing any malfunction. If does then the malfunction must be rectified as soon as possible without any delay.

5. Establish Relationship: By accomplishing the above stages successively the salespersons have made a way of relationship with the customer. To keep this relationship in long run the salespersons should keep contact with the customer and take the information about the product whether it is working. They should provide the latest information to the customer and any needed modification of the product.

Page 8 of 10

Sales cycle is the core of the business as the main deal of the product is made by this cycle. So the sales effectiveness is very important for all the firms. Sales effectiveness which means the ability of the firms’ salespersons to be successful at each stage of the sales cycle in an effective manner staying in the limit of the timeframe. The sales cycle effectiveness is not only the issue of the sales department but also the company issue which need a deep concentration in it. So to be successful in the sales process the company should practice CRM in the sales cycle where CRM implies that the customers should be treated as vulnerable term and should be continuously researching and judging them to understand and cope with their need and wants.

Page 9 of 10


• • • • • • • •

Business for 21st century, Steven J Skinner and Ivancevich. Principles of Marketing, Philip Kotler and Gary Armstrong. www. Definitions- Leadership, Management, Teamwork and Business IVEY BUSINESS JOURNAL- intArticle_ID=382 SAP community network- rid=/library/uuid/0018c790-bd9b-2c10-98a8-9254a675a0ea

Page 10 of 10

Sign up to vote on this title
UsefulNot useful