Customer Relationship Management - What is CRM ?

Every business unit emphasizes on spurting a long term relationship with customers to nurture its stability in today s blooming market. Customer s expectations are now not only limited to get best products and services, they also need a face-to-face business in which they want to receive exactly what they demand and in a quick time. Customer Relationship Management is an upright concept or strategy to solidify relations with customers and at the same time reducing cost and enhancing productivity and profitability in business. An ideal CRM system is a centralized collection all data sources under an organization and provides an atomistic real time vision of customer information. A CRM system is vast and significant, but it be can implemented for small business, as well as large enterprises also as the main goal is to assist the customers efficiently. Usually an organization consists of various departments which predominantly have access to customer s information either directly or indirectly. A CRM system piles up this information centrally, examines it and then makes it addressable within all the departments. Lets take an example of an international call center which uses a CRM tool called xyz and is integrated with a phone and a computer system or laptop. Now this system automatically perceives which customer is calling. Before the executive attends the phone the CRM system brings forth the customer details on the computer or laptop screen and also indicates what the opportunity of deals is with that particular customer, what the customer had already purchased or ordered in past and what is the probability of buying in future. Not only this, it can also highlight what all products best suit this customer. For finance department it may show the information regarding the current balance and for accounting department it may pop out the information regarding the recent purchases by the customer. All these pieces of data are stored in the CRM database and are available as and when it is needed. According to this example, CRM system provides a well defined platform for all business units to interact with their clients and fulfill all their needs and demands very effectively and to build long-term relationship. Wangling this kind of relationship with customers is not easy to manage and it depends on how the systematically and flexibly a CRM system is implemented or integrated. But once it s accomplished it serves the best way in dealing with customers. In turn customers feels gratitude of self-satisfaction and loyalty which results in better bonding with supplier and hence increasing the business. A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. 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 . 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. Customer Relationship Management strategies have given a new outlook to all the suppliers and customers to keep the business going under an estimable relationship by fulfilling mutual needs of buying and selling.

Originally customer relationship management was based on three major principles. business perspectives were totally changed. due to incoming complexities in communication. fostering new customers and enhancing asset value of all the customers. shielding the current customers. the approach needed to be changed to proactive rather than reactive. People used to work hard in entertaining customers by presenting new products with astonishing services. The realization of the benefits of utilizing information proactively and not reactively. The famous writer and management consultant Peter Drucker wrote.Origin of CRM CRM originated in early 1970s when the business units had a manifestation that it would be advisable to become customer emphatic rather that product emphatic . The belief that customers are the real assets and not just the people in the audience. 2. Traditionally every transaction was on paper and dependent on goodwill which created hindrance in clutching customers. but at the end of the day there was no such bonding or relation between the two to carry on with future business smoothly. . Origination of CRM turned out to be a piece of cake for all suppliers and customers due to its advantages. Extensive use of software and technologies to maintain useful information and no manual labor. The true business of every company is to make and keep customers . The acceptance of the fact that using high end technologies and software the cost can radically be decreased without compromising on quality and service of products. Birth of CRM was because of this heedful perceptiveness. 5. 4. But with time. 3. 7. The change of business view to relationship approach rather than transactional approach. Customer relationship management came as a process that dealt with relationships with customers surpassing the whole business. With the advent of CRM which was integrated with high end software and technology. 6. A CRM system eventually emerged as consisting of company-full of information which is depicted sophistically to increase business profit and meliorate customer satisfaction and loyalty. This too resulted in customer satisfaction and loyalty up to some extent. it found itself in troubled waters. 8. Emerging of new strategies and technologies in global marketplace and a mammoth degree of competition in business. The outgrowth in origin of CRM as a strategic approach is a result of some of the following important perspectives: 1. The approach of focusing on customer satisfaction and loyalty rather than focusing self satisfaction and profit. on the same hand reduces business cost and investment. The maturation of one-to-one transaction advent. they were ready to work overtime for grasping more and more customers for increasing business. The approach of concentrating more on customer values rather than concentrating on how the product is delivered to the customer. Previously business was quite easy as it was mere a one-to-one dealing without any specific process.

3. Success totally depends on the understanding and interpreting these queries and then working out to provide the best solution. Dealing with these queries intelligently is very important as small misunderstandings could convey unalike perceptions. During this situation if the supplier wins to satisfy the customer by properly answering to his queries. He does not opt for taking a risk in going . the more is customer satisfaction. he succeeds in explicating a professional and emotional relationship with him.Customer response is the reaction by the organization to the queries and activities of the customer. or when he is tended towards re-buying a particular product or brand over times by that supplier. Customers Needs. To continue the customer loyalty the most important aspect an organization should focus on is customer satisfaction.An organization can never assume what actually a customer needs. Customers Response.9. 5.Customer satisfaction is the measure of how the needs and responses are collaborated and delivered to excel customer expectation. Hence it is extremely important to interview a customer about all the likes and dislikes so that the actual needs can be ascertained and prioritized. 4. Usually a loyal customer is tended towards sticking to a particular brand or product as far as his basic needs continue to be properly fulfilled. These additive approaches helped a lot in building up consequently the modern CRM. Hence. In today s competitive business marketplace. The increasing tendency to retain existing customers and trying to get more and more business out of them. The realization that the traditional trends of marketing and selling are increasingly fading out in the current economic scenario. more is the business and the bonding with customer. customer loyalty is an influencing aspect of CRM and is always crucial for business success. customer satisfaction is an important performance exponent and basic differentiator of business strategies. Customer Satisfaction. Features of CRM Customer Relationship Management is a strategy which is customized by an organization to manage and administrate its customers and vendors in an efficient manner for achieving excellence in business. Customer Loyalty.Customer retention is a strategic process to keep or retain the existing customers and not letting them to diverge or defect to other suppliers or organization for business. Without modulating the actual needs it is arduous to serve the customer effectively and maintain a long-term deal. 10. Today we have well defined and sophisticated CRM systems into being which are always in process of improvement. It is primarily entangled with following features: 1. Customer Retention. Hence. 2.Customer loyalty is the tendency of the customer to remain in business with a particular supplier and buy the products regularly. This is usually seen when a customer is very much satisfied by the supplier and re-visits the organization for business deals.

The organization has not only to elaborate and clarify the details of the services to be provided to the customer but also to abide with the conditions as well. Importance of Customer Relationship Management (CRM) Customer Relationship management is the strongest and the most efficient approach in maintaining and creating relationships with customers. the organization is supposed to have a good business with customers. A genuine reason can also exist due to which the customer is dissatisfied but sometimes complaints are launched due to some sort of misunderstanding in analyzing and interpreting the conditions of the deal provided by the supplier regarding any product or service. Customer relationship management is not only pure business but also ideate strong personal bonding within people. Normally raising a complaint indicates the act of dissatisfaction of the customer. This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business. Customer Service. . If the quality and trend of service go beyond customer s expectation. A CRM system consists of a historical view and analysis of all the acquired or to be acquired customers. it is very easy for any organization to identify the actual needs of customer and help them to serve them in a better way. Buzzstream. Sugar CRM etc. Development of this type of bonding drives the business to new levels of success. There can be several reasons for a customer to launch a complaint.for a new product. It is a belief that more the sophisticated strategies involved in implementing the customer relationship management. Customer satisfaction depends on quality of service provided to him by the supplier. Once this personal and emotional linkage is built. Some of the efficient tools used in most of the renowned organization are BatchBook. Customer Complaints. the more strong and fruitful is the business. 7. Handling these complaints to ultimate satisfaction of the customer is substantial for any organization and hence it is essential for them to have predefined set of process in CRM to deal with these complaints and efficiently resolve it in no time. 6.In an organization Customer Service is the process of delivering information and services regarding all the products and brands. Most of the organizations have dedicated world class tools for maintaining CRM systems into their workplace. More is the possibility to retain customers the more is the probability of net growth of business. Let it be a newly brought up enterprise or a well established organization the above aspects prove to be of prime importance in dealing with a genuine customer through a well organized CRM system.Always there exists a challenge for suppliers to deal with complaints raised by customers. Salesforce. Looking at some broader perspectives given as below we can easily determine why a CRM System is always important for an organization.

. The strongest aspect of Customer Relationship Management is that it is very cost-effective. Efficiently dealing with all the customers and providing them what they actually need increases the customer satisfaction. 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. All the details in CRM system is kept centralized which is available anytime on fingertips. In CRM system. practice of dealing with existing customers and thriving business by getting more customers into loop is predominant and is mere a dilemma.CRM contains each and every bit of details of a customer. This helps in focusing and concentrating on each and every customer separately. 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. 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 . The technologies used in implementing a CRM system are also very cheap and smooth as compared to the traditional way of business. Installing a CRM system can definitely improve the situation and help in challenging the new ways of marketing and business in an efficient manner. A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. This increases the chance of getting more business which ultimately enhances turnover and profit. This reduces the process time and increases productivity. hence it is very easy for track a customer accordingly and can be used to determine which customer can be profitable and which not. 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. 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. All this is very easily and efficiently done by an integrated CRM system. 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.

5. The selection process of any product or brand is simplified due to proven online research and analysis techniques.Customer Relationship Management (CRM) and Marketing CRM leverages and amplifies customer base of an organization through efficacious and efficient marketing.With the growing popularity of web. have been matured during the recent past.A CRM system provides a platform to analyze the customers buying behavior online. Some of the major advantages of Web Marketing are listed below: 1. This accomplishes to build a long-term relationship with customers by properly canvassing customer needs and resulting in customer satisfaction. 2. 1. Suppliers can reach to more number of customers in lesser amount of time. 3. Email Marketing. provision of saving events into calendars etc.xyz. web marketing. Online marketing campaigns are more promotional as compared to manual campaigns. 3.Email marketing has turned out to be more efficacious and inexpensive as compared to mail or phone based marketing strategies. Individualized analysis of this behavior also helps to identify to which product or brand the customers are more tended. Intuitive CRM associated marketing strategies like direct marketing. The various aspects of CRM oriented marketing are discussed below. More attractive features include newsletters. This interactive strategy provides great accuracy with high speed which includes profiling services furnishing elaborated bits of information regarding customers purchasing habits or behavior. This helps both customers and suppliers to transact in a real time environment irrespective of their locations. Analyzing this particular buying behavior of customers online also helps to fix or change of marketing techniques or strategies to mould the system according to the future perspectives. sending of eCoupons.com can analyze the customers buying behavior by installing an inhouse service with the help of a full-fledged CRM that checks what all products are being purchased by a particular customer and under which specific group they fall. 4. The online marketing campaigns can be easily tracked. e-mail marketing etc. This is achieved by personalized analyzing the buying history of customers in the past which predicts the future business with those customers also. Web Marketing. They also help meliorating response rates in marketing campaigns. customers are tending towards web marketing or web shopping. traced. For example an online selling website www. Analyzing customers buying behavior online. Email marketing is direct marketing which is data driven and leads to more accurate customer response and effective fulfillment of customer needs. It is relatively very inexpensive as it reduces the cost for physically reaching to the target customers for interaction. cut cost on promotions due to low asset values and provide higher scrutiny on organizational investments. In fact CRM has brought up new dimensions in the field of marketing by significantly improving marketing functioning and execution. . These marketing strategies are more promising as compared to the traditional ways on marketing as they help delivering higher-up performance and walloping business. calculated and tested. eCards. 2.

This innovative approach is carried out with greater risks but is believed to outturn astonishing rewards. 6. testing their performance and assembling the best possible combination of these strategies to meet the needs of the customers and maximize its marketing growth. CRM market forecasting techniques help to understand this change through regression and statistical analysis of customer behavior online. . Compensation calculation and reward program management. Customer Relationship Management (CRM) and HR Human Resources are those constituents of an organization that take care of the human facets and needs of all employees within that organization. 2.4.It is important for an organization to have check on marketing performance regularly so that the techniques never deteriorate and always match to yield greater results. Structuring hierarchy of employees. Employees are the significant assets and the primary promoters of profitable business for an organization. 8. it s a decisive responsibility of an organization to manage and fulfill all needs of its own employees. Employee recruitment and selection. Hiring Campaign management. It would be improper to say that a CRM system is only used to manage clients and customer. Portfolio management and area location management. These are some complex but more accurate analysis techniques provided by CRM system which are proved to be one of best marketing strategies. These CRM oriented models help in delivering accurate measurement of marketing performance throughout the organization and to do better every time. 9.Down the line marketing strategies keeps on changing according to the emotional behavioral change of customers. Hence it is very important for an organization to incorporate them by carefully anticipating change. Forecasting future marketing strategies. 3. 5. most of the HR heads or managers are using CRM technologies for managing company s human capital. This approach is called as Employee Resource Management (ERM). In-house training for all employees according to skill sets. 5. apart from managing clients and customers for business purpose. Building business impact models. These synergistic marketing strategies make a part of CRM system to develop high-end marketing business. Employee relationship management. An ERM is a business process that fills gaps between an organizations and its employee to create a strong emotional and professional bonding among them. 7. 4. Transformation and change management. Hence. Key functions of HR in an organization are1. Performance calculation and managing employee behavior.

Online Alerts. Generate online Letters and data. Training. These can be online tracked for internship which can be optional or mandatory. 6.Notification to attend online and manual training can be easily distributed within the organization. Meetings and Certifications. An employee can see all the payroll related features and the salary statements can be automatically mailed to every employee. 3.Every employee does have the deftness to export or import any sort of data available on the portal to and from an excel sheets or comma separated files (CSV files). An organization is always benefitted by Employee Relationship Management if it is implementing it with CRM strategies with clear rules and guidelines. A notification is sent automatically to all the attendees informing them to be present in the meeting on the specified timings and venue. Export/Import facility. 2. The manager has the option for approving or rejecting this application online.A well integrated ERM provides a committed information base system for all Human resources. All the employees also have the facility to complete or attain online certifications as and when needed.Online alters are generated whenever any employee have something due.Employee have a dedicated portal for applying or notifying for leaves. Profile Management. Employees are allowed to change or edit some of this general information whenever there is a need. 8. employees are used to get these alerts automatically when they need to complete any survey or review or when there is a need to renew any software license.Managers and employees have the facility to online schedules of meetings or to book available meeting rooms. This is termed as Human Resource Information System (HRIS) in most of the renowned organizations which provides a better interface for HRs to deal with internal employees and screens all problems associated with relationship among organization and employee. For an organization an upright and healthy relationship with employees always acts as reciprocal commutation and leads to betterment of both. 5. 4. The applied leaves get deducted from the bundle of employee s annual leaves automatically for which he gets email notification regularly. . Payment/Compensation.The human resource managers or executives have the zeal to furnish offer letters or response letters online to the newly joined employees.A profile management technique is used to manage profiles of all the employees which contain the entire employee related information which is also exposed to the employees in HRIS tool. Leave Management.Details regarding employee payroll and employee branding can be easily managed under this. Some of its features are listed below1. They just have to apply for leave through this portal and the information is escalated to his/her manager. 7. There is no need for the new employees to re-enter their respective information again and again whenever needed. For example.

It would be improper to have a successful business purely technology-centric ignoring the importance of people and processes.It is a myth that IT maintenance cost is unaffordable by small and medium class entrepreneurs. CRM is expensive and unaffordable by small enterprises. Its operation is easy without involving expensive IT professionals. Return on Investment means the evaluation of returns with the costs incurred. Therefore the right implementation sequence has to be followed and it must include proper competencies and people s attitudes. So CRM is not an IT issue only to be simply equated to software. Software is only an enabling or a facilitating device. in the present times technology is more advanced and the quality of customer management have been entirely changed. The responsible person should be the CEO who is the leader of the enterprise and it is he who formulates and manages the business strategies. still customer relationships were being managed then by keeping in mind a customer database. Now. the right business strategies and then the right IT implementation. If we go back to the times when there was no IT implementation. Wrong assessment for the Return On Investment in CRM.Misunderstandings about Customer Relationship Management (CRM) Many companies have misconceptions about CRM in regard to assessing customer satisfaction in order to enhance business.to maximize business profits.CRM is a business strategy which consists of people and business processes in addition to technological implementations. Why the other . CRM is sometimes regarded as giving a poor ROI? It is the wrong way to think so. In fact the probability of poor ROI is more if CRM is not deployed and the opportunity costs are more. Identifying CRM with a software system.It is not at all advisable to lay the responsibility on all of them individually. Because of the fast developing technology there is pressure on IT professionals to cope up with the recent developments.The meaning of CRM is simple to fetch customers. Therefore to target good results emphasis should be on people and procedure strategies and utilize software at the end part only. Then only it can deliver customer and company value. There are several misunderstandings in Customer Relationship Management to be checked otherwise these may cost the organization revenue and profits.The Marketing. Nowadays Application Service Providers with simple and limited functions have been introduced to provide CRM at affordable prices. The process is implemented and enabled by the software only when it is properly designed and developed by people. Customer Service. or IT officials?. retain them and maximize profitability. But the core of CRM and the target remain the same . The main causes of poor ROI are ignoring people and procedure strategies. difficult to understand. So the how part of implementing CRM may be felt difficult. Sales. Keeping this perspective in mind proper techniques must be employed to access its utility. absence of quantified benchmarking to measure the results.In CRM implementation. A successful implementation of CRM is not possible without each one of them. lack of vision in strategic acquirement of opportunities etc. But the why part of the CRM concept is also not difficult to understand. The result will be that none of them will feel his responsibility. CRM is a complicated system. These are the points to ponder before implementing a CRM. Who is responsible for CRM implementation .

What is Customer Relationship ? In CRM the alphabet R means relationship. This relationship only exists when the two parties diverge from a state of autonomy to mutual or interdependent. Expansion.Commitment is a powerful stage when suppliers learn to adapting business rules and goal to excel. Suppliers can also prefer to break relationships due to customer failing to be a part to increase sales volume or when the suppliers are entangled with fraud cases. Exploration. 3.Expansion is the process when the supplier wins customer s faith and customer falls under huge interdependence of the supplier. If the test results fail to satisfy customer s demands. Relationship between any two parties is actually the interaction or transaction done between the two over-times or consists of a continuous series of synergistic episode of interaction many a times. Relationship can come to an end due to many reasons like . the relationship can drastically come to an end.customer is not satisfied with the services of supplier or customer diverges to other better brands and products.person should be pressurized? In order to have a better success index. Following are the stages from where the relationship with customers can evolve1. This is time when there are more chances of business with that particular customer and expand business. 5. the CEO and his immediate deputy should be well educated and trained for a better implementation of CRM. A better understanding of different dimensions of CRM therefore is a must to potentially enhance the benefits of CRM implementation. Awareness. If the customer returns to the café and orders the same tea again because he likes the environment and taste or the method of making tea. more looks like a relationship. Commitment.Exploration is the process when customer investigates or tests the supplier s capabilities and performance or cross verifies the product s or brand s usefulness.Awareness is the process when the customer understands the motivational values of supplier or the products he sells. This sudden change is the end of relationship. Relationship with customers can change from time to time because it is evolved under distinguished situations. for example buying a refrigerator from a consumer s outlet would not be called as a relationship. Occasionally having a cup of tea from a café does not mean that there is a relationship. 4.Dissolution is a stage when customer requirement suddenly changes and he looks for better perspectives. This relationship between supplier and customer is not a personal relationship or a one-time transaction relationship. Dissolution. . But there is always an ambiguity to understand the actual meaning of this relationship. 2.

2. 2. efforts and time in striving developed relationships between the two parties but the outcome is always inevitable. huge cost which is incurred in switching from committed relationships of one supplier and build new relationships with other suppliers from scratch. As a result of knowing more about each other. Lack of trust on the other hand weakens the relationship foundation and chances of uncertainty and conflicts increases.These types of customers are less in numbers but promote more sales and profit as compared to other customers as these are the ones which are completely satisfied. In fact the customer is the actual boss in a deal and is responsible for the actually profit for the organization. In a committed relationship both suppliers and customers strive to uphold the relationship and never want to exit which in turn results in building the relationship stronger and sharper. in fact. Loyal Customers. There is. Trust is developed between the two parties when they experience flawless and satisfied motives between each other. There is lot of involvement of cost. Trust: Trust means confidence and security in any relationship and can be treated as the biggest investment in building long term relationships. Customer is the one who uses the products and services and judges the quality of those products and services. To manage customers. Hence it s important for an organization to retain customers or make new customers and flourish business. More is the discount the more they tend towards buying. Customers can be of following types: 1. organizations should follow some sort of approaches like segmentation or division of customers into groups because each customer has to be considered valuable and profitable. Relationship is always mutual or reciprocal so it is important for both supplier and customers to stick to common guideline to attain better relationship among each other. Different Types of Customers Customers play the most significant part in business. Commitment can only be attained when there is mutual trust and the two parties share each other s values. Discount Customers.Broadly there can be two distinguished attributes of a developed relationship between supplier and customer: 1. These customers are mostly . Loyal customers want individual attention and that demands polite and respectful responses from supplier.Discount customers are also frequent visitors but they are only a part of business when offered with discounts on regular products and brands or they buy only low cost products. all the doubts and risks are minimized and leads to inevitably smooth business. Commitment: Commitment is yet another milestone that should be achieved to set a long term mutual relationship. These customers revisit the organization over times hence it is crucial to interact and keep in touch with them on a regular basis and invest much time and effort with them.

They investigate features of most prominent products in the market but do not buy any of those or show least interest in buying. The main ingredients that are involved in a high quality relationship between customer and supplier are trust and commitment. Need Based Customers. An organization should always focus on loyal customers and should expand or multiply the product range to leverage impulsive customers. Handling these customers is a challenge as they are not particularly looking for a product and want the supplier to display all the useful products they have in their tally in front of them so that they can buy what they like from that display. If impulsive customers are treated accordingly then there is high probability that these customers could be a responsible for high percentage of selling. Impulsive Customers.These customers are product specific and only tend to buy items only to which they are habitual or have a specific need for them. Wandering Customers. For fulfilling this goal organizations must have a set of rules to measure and improve this quality. These customers could possibly be lost if not tackled efficiently with positive interaction. Quality of Relationship with Customers Satisfying customer needs ensures the business survival for an organization. Trust is developed between the two parties when they experience flawless and satisfied motives between each other. Trust means confidence and security in any relationship and can be treated as the biggest investment in building long term relationships. Focus on these types of customers is also important as they also promote distinguished part of profit into business. For other types of customers strategies should be renovated and enhanced for turning out these customers to satisfy their needs and modify these types of customers to let them fall under loyal and impulsive category. They don t have any specific item into their product list but urge to buy what they find good and productive at that point of time. These are frequent customers but do not become a part of buying most of the times so it is difficult to satisfy them. As a result of knowing more about each other.These customers are difficult to convince as they want to do the business in urge or caprice. all the doubts and risks are minimized and leads to inevitably smooth .related to small industries or the industries that focus on low or marginal investments on products. Delivering best quality services to customers is considered the most efficacious way to ensure that an organization stands out from a group of competitors and avail the privilege to be known as best among all.These are the least profitable customers as sometimes they themselves are not sure what to buy. 3. To grab such customers they should be properly informed about the various positive features of the products so that they develop a sense of interest. These customers are normally new in industry and most of the times visit suppliers only for confirming their needs on products. 5. These customers should be handled positively by showing them ways and reasons to switch to other similar products and brands and initiating them to buy these. 4. A periodical check is required to enhance the quality of services and product to build a quality relationship with customers.

4. as a result chances of uncertainty and conflicts increases. 5. responsive and experienced executives to serve customers. Intelligent. Courtesy. Responsive. For example.The suppliers should always have prompt. Availability. In a committed relationship both suppliers and customers strive to uphold the relationship and never want to exit which in turn results in building the relationship stronger and sharper. huge cost which is incurred in switching from committed relationships of one supplier and build new relationships with other suppliers from scratch. 3. Delivering the responses in calm voice with courtesy and sympathetic sense could dramatically act as a catalyst in driving customer s satisfaction. . A supplier should be intelligent enough to deal with these situations and offer the best price and deal so that the customer is not lost to the supplier who is able to make some substantial profit if not more. if a customer calls and asks about some critical features of any product and the executive fails to explain it or being non-responsive to most of his questions then the customer could probably divert his way to some other organization for better response which could definitely result in end of the deal and relationship with that customer. Provision of these services always promotes emotional bonding between customers and suppliers which in the end is always fruitful and drives to profitable business. But it is substantially important for supplier to keep his calm and deal accordingly. Commitment can only be attained when there is mutual trust and the two parties share each other s values.Many customers are attracted towards good deals which consist of discounts and feasible prices. it is important for an organization to make its executives always available for customers for responding and dealing with customer queries and needs.business.Manic customers always prefer human responses instead of electronic emails or messages. The strategies.Many times customers become irritated and uncivil due to some unpredictable reasons.Always be futuristic to technological changes. Futuristic. There is. in fact. Lack of trust. Commitment is yet another milestone that should be achieved to set a long term mutual relationship. these include the following: 1. Inheriting the above quality attributes into business will always improve quality relationship between customers and suppliers and is always fruitful for both. types of services and products could gradually deteriorate with time due to huge competition and higher rate of technological changes. on the other hand. There are other attributes as well which promote a high quality relationship. Hence. weakens the relationship foundation. 2. This requires predefined strategies to be created and to respond intelligently towards fulfilling these strategies. Keeping this in mind an organization should always focus on renovating business strategies periodically and convince the customers accordingly.

If competitors are making more prominent impression of products and services then it is important for suppliers to mould their business strategies to meet future needs of customers and to attract them to have business with them. It also helps providing feedback regarding image and performance of the organization so that they could leverage the strategies to meet the targets. This measurement is essential for suppliers to understand that their strategies are in right direction. Market research or market survey is the tool that can be implemented to measure customer relationship. 3. Competitors influence on products and services . By knowing the future perspectives of customers it becomes easy and efficacious for suppliers to build a medium term or even long term relationships with customers.Customer Relationship Measurement Customers are the most important part of business. customer satisfaction and customer loyalty. . By measuring customer satisfaction a supplier can maintain a quality and long term relationship with customers and secure their future business and financial assets. These future perspectives of customers are related to following factors: 1. This tool is capable to furnish accurate information on the following main facets of customer relationship . This tool furnishes the above related information not only with accuracy but also with their future aspects which is a very important asset for business perspectives. This research includes deep analysis of the financial and economical conditions. 2. Market research is a strong tool that renders the customers with important and unique data on customers needs which helps them to create business strategies and come up with considerable business decisions. How the present needs of customers can change in past can also be predicted by these sophisticated research and analytical tools by deriving some important trend variables of these customers.Competitors are also the important factor for analyzing future needs of customers.How the suppliers are influencing the customers by their products and services is an important factor for this research.1) Loyalty 2) Satisfaction 3) Customer Behavior 4) Response 5) Service 6) Customer Compensation 7) Customer Needs. Suppliers influence on products and services . Environmental or market effects . It helps the organization to encapsulate future business by determining business goals and objectives to meet business targets. Present customer needs By analyzing current needs of customers the suppliers can determine the trend of buying of customers. It helps them to be always on top. 4. Only satisfied customers will be interested in buying and they will also refer other customers to buy.By predicting the current market trend suppliers can analyze how the market is going to perform in the coming future. There cannot be any business without them.

Hence incorporating techniques which could measure the relations with customers are very important for all the organizations so that they remain in this bonding forever.Management professionals are responsible to provide motivation. Every business unit uses different approaches according to the business they posses to measure their relationship with customers. manufacturing. . Strategic CRM .g.Building relationship with customers in current market trends is the most important aspect that an organization should focus on. Management. 2. They will be responsible to communicate all the related details and benefits of the CRM strategies to all the members of the organization. these approaches of measuring customer relationships are associated differently to different types of customers according to their individual importance. Technical.Strategic CRM involves almost all the departments of an organization e. marketing etc. Each and every member of this team should be experiences and dedicated professional as these members will be the key decision makers in the whole process. Also. b. By doing this the organizations are able to decide which area requires application of resources to get best business impact. finance. Building valuable project team. These members should be from following work groups to ensure all the aspects of strategies are addressed efficiently. Amplify Commitment. distribution. Today distinction and eminence are the most sustainable approaches for which developing good relationship with customers is essential. Determining and development of CRM strategies involves following steps: 1. Hence it is essential to get support and use their important feedback while determining strategies. For this each and every department should be kept informed about all the developments and implementation of processes carried out or performed. a.Mainitain Long Term Relationship with Customers The aim of strategic CRM is to concentrate and enhance the knowledge about customers and use this knowledge to improve and customize the interactions with customers to maintain a long-term relationship with them. Everyone should also be emphasized about the positive approaches and end results of the strategies. leadership and management at every strategic development step especially when a change in business process or organizational structure is expected.After organizational commitment is secured the next important stage in developing CRM strategies is building a determined and valuable project team. Also technical professional provide their useful contribution in building and managing software application and determining their compatibility with existing software features.Automation of CRM strategies are important and must involve experienced technical hands. sales.

The main importance of a CRM system lies on how the selling. d. Campaigns developed to communicate customers individually are easy and involves unique and direct communications. The applied strategies are supposed to be successful once these users fell comfortable and satisfied by using all the CRM features.As the name implies.These are final users of CRM system once the strategies are determined and implemented. campaign management involves marketers to use customer specific information to determine. For example. They also help in assessing the investment cost per module or segment so that the product is delivered inside the budget. Operational CRM Operational CRM is mainly focused on automation. evaluate and develop communications that are targeted to customers in individual as well as multilevel or multichannel environment. e. 3. Sales and Marketing.c. marketing and service oriented processes are automated. and for which operational CRM systems are embedded with following major automation applications: 1. These are people who are generally hired or outsourced for second fruitful opinion or if the organization is lacking with sufficient CRM experts. Requirement Analysis. The financial professionals of the team can provide crucial analysis on assessment of enhanced productivity. evaluation of operational and production cost and final estimated cost of the project. Marketing automation. marketing automation is basically focused on automating marketing processes. improvement and enhancement of business processes which are based on customer-facing or customer supporting. some . Financial. Being the end users these people are also responsible to provide useful feedbacks on efficiency and effectiveness while the strategies are in development phase. work with other professional to review and approve complex business structure and even helps in formulating the team members according to the expertise they posses.The CRM strategies must also be gone through or evaluated under financial aspects. This process involves a series surveys and questionnaires with top level sales. These professionals have vast experience in the same field and helps analyzing organization s actual business needs. In marketing.Many times some external consultants and other CRM vendors are substantially helpful in strategy development. marketing and financial managers to gather the actual expectations regarding the strategies to be implemented and what results these strategies will throw in the final stage. This is a very crucial factor in the development of an effective CRM system because if the results are not matching the actual requirement or if they diverge from focus points.CRM strategies should always focus and concentrate on the actual business requirements. External Experts. then that means it s not achieving the desired goals. For multichannel environment the implementation of marketing strategies and campaign management is quite difficult and challenging.

The actual interactions with customers such as contact. 3. credit card customer calls the call center for inquiring the current interest rates. direct mail. a CRM marketing strategy called event-based marketing is inherited. Service Automation. call centers. . wholesale stores. 2. the customer can easily be contacted at right time at the right place. websites. For example. Any one in the organization can have access to this information about customer which gives a clear view of customers needs and important information on the customer such as products owned. if required. 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. direct sales. Using event based marketing communication and offers are presented to customers as and when they are required. web sites and blogs etc. home shopping and even television shopping. Different customers have to be treated differently so information on variables like customers ranking. On the basis of the information. Operational CRM refers to services that provide support for various front office business processes in helping organization to take care of their customers. actual value and potential value is of strategic value. Without wasting time the automated CRM system pops up an event of offer which is best suited for that customer and helps to retain him back. It naturally eliminates the need to obtain this information individually from the customer.retailers have multichannel transactions like shops or stores. Sales-force Automation. This process can be distributed into many stages which includes generation of lead and then qualifying those leads as prospects. For handling this. are examples of operational CRM. this indicates that customer is specific about the interest rates and is trying to compare the interest rates and may switch to different competitor to find specific deals which suits him.Service automation deals with managing organization s service. Automation of selling process is efficiently handled by Sales-force automation which automates all the methodologies or sales cycle and above described process sophisticatedly. Focus on customers value is important for a successful operational CRM strategy. The process first starts with identifying a customer and maintaining all the corresponding details into the CRM system.A CRM system is not only used to deal with the existing customers but is also useful in acquiring new customers. prior support calls etc. Each interaction with a customer can be collected to the client database generally known as customer s history and the information can later be used wherever necessary. data aggregation systems. Here integration and implementation of communication strategy is difficult and evaluation of performance and quality of campaigns needs to be automated and should be technologically sound across each of the channels.

Improves customer satisfaction and loyalty. Analysis is done in every aspect of business as described below: . there is a key difference between operational CRM and Analytical CRM. 3. Seizing all the relevant and essential information of customers from various channels and sources and collaboratively integrating and inheriting all this data into a central repository knowledge base with a overall organization view. 3. Helps in addressing individual customer s needs and efficiently improving the relationships with new and existing customers. where automation of marketing. Advantages of implementing and using an analytical CRM are described below. scale and optimize customer relations. Unlike from operational CRM. developing and analyzing inclusive set of rules and analytical methods to scale and optimize relationship with customers by analyzing and resolving all the questions which are suitable for business. affinity and segmentation. 2. Primary goal of analytical CRM is to develop. improve relationship and interaction with customers and the actual business planning with customers. 4. 1. analytical CRM is designed to analyze deeply the customer s information and data and unwrap or disclose the essential convention and intension of behavior of customers on which capitalization can be done by the organization. Helps in retaining profitable customers through sophisticated analysis and making new customers that are clones of best of the customers. spending. It deals with all the operations and processes that do not directly deal with customers. support and enhance the work and decision making capability of an organization by determining strong patterns and predictions in customer data and information which are gathered from different operational CRM systems. Leads in making more profitable customer base by providing high value services. sales-force and services are done by direct interaction with customers and determining customer s needs. It implements the customer information in an intelligent way and creates views on customer values. Analytical CRM is a solid and consistent platform which provides analytical applications to help predict. Combine and integrate the values of customers with strategic business management of organization and value of stakeholders.Analytical CRM Analytical CRM supports organizational back-office operations and analysis. Implementing or deploying the results to enhance the efficiency of CRM system and processes. The following are the key features of analytical CRM: 1. Hence. The power of CRM provides a lot of managerial opportunities to the organization. 4. Determining. 2.

4.Sales analytic provides essential environment to plan. Marketing Analytics. It provides a better view of customer behavior and by modeling. 5.Analytical CRM has major role in enhancing the services which answering all the questions regarding customer satisfaction. This information is efficiently integrated in customers knowledge base so that they can be contacted accordingly. which can be treated at an average level and which should not be invested in.This is the base analytic used to analyze customer knowledge base. Service Analytics.This helps discovering new market opportunities and seeks their potential values. assessing customer values and assessing customer s portfolio or profiles and creates an exact understanding of all the customers. The essential results produced by Analytical CRM system could diversely help the organization to tackle customers based on values. product analysis and branding. complaint management etc. simulate and predict sales volumes and profits by constantly analyzing organizational sales behavior. like web channel.This type of analysis helps to determine the customer behavior on channel preferences. quality and cost of products. It also helps in managing marketing strategies and scale and plan marketing performance at district. Channel Analytics. It helps in pipelining all the selling opportunities in an efficient way by indulging and improving the sales cycle. It also helps in determining which customer is best to invest in. It even helps in improving and optimizing the services by sophistically analyzing the service revenue and cost. Sales Analytics. 3. . telephone channel etc. regional and national levels. personal interaction.1. Marketing analytics also focus on campaign management and planning. Customer Analytics. 2.

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