rd 3

unit

Developing CRM Strategy

Introduction
A common mistake for many organizations is to think of CRM in terms of isolated pockets of technology. However, a successful CRM program needs a proper strategy to knit it together, make it cost-effective and focused. This page outlines some key resources to help your organization craft a successful CRM strategy.

Introduction cont
Your CRM strategy will aid your goals to acquire, grow and retain profitable customer relationships to create a sustainable competitive advantage. With this in mind, you must remember without a doubt, customer loyalty is the key to profitability. This aspect must be an integral part of your dealership's strategy. Understanding customers' requirements is fundamental to business success.

Introduction cont
Listen to your customers and then begin developing your CRM strategy because if you don't satisfy your customers, they won't come back. And remember: CRM isn't CRM unless it affects the customer's experience CRM is a strategy, not a project CRM should improve ROI

CRM IS STRATEGY, NOT JUST DATA

A key goal of CRM is to develop a view of the client from all angles or areas of the company. This means continually learning about your clients. Data obtained from each client interaction must be electronically stored so it can be shared among employees within your firm. This can be a challenge when there are high numbers of clients or industries, the business is seasonal.

CRM IS STRATEGY, NOT JUST DATA cont

The simplest form of client data is contact data. This includes full names and addresses, as well as each persons position and role in the decision-making process within the clients business, such as buyer, influencer, approver or gatekeeper.

CRM IS STRATEGY, NOT JUST DATA cont.

Transactional data focus on historical events and describe the relationship with the client. This information includes client activity outcomes such as how and through what areas/departments your firm interacted with the client, what services the client has purchased, and which sales pitches did not result in client engagements. It also includes the clients payment history and the value of the overall account, and information on how frequently the client contacts your company for services and their latest engagement.

CRM IS STRATEGY, NOT JUST DATA cont.

Properly processing these transactions will help effectively manage the client relationship. This type of behavioral data will help you understand your clients personalities, preferences, needs, motivations and expectations. Finally, your firm must collect relationship data. Relationship data identifies interdependencies and potential conflict issues. A critical source of client intelligence is what you know about the relationships in your firms network.

CRM Strategy
1. Choose the right people universal agents, able to handle virtually any issue from standard customer care issues to past-due collections. Then, match top performers in each area to specific clients. Universal agents can easily be identified by their customer service skills and a thick skin required for past-due collections. Simply put, you can teach a collections agent how to handle customer care, but customer care agents rarely have the skills needed to manage collections calls.

CRM Strategy cont.

2. Provide up-front and ongoing training Once identified, universal agents should receive special training. They must have the empathy, bridging and negotiation skills needed to open and close a customer care issue and negotiate and resolve a past-due billing issue often during the same call. They must know how to change a customers payment due date, offer credits, or waive a service fee. If the customer recently lost a job, the universal agent must be able to show empathy and offer payment alternatives.

CRM Strategy cont.

3. Control customer service quality and performance With customer data and payment habits on their screen the moment the call comes in, universal agents can deliver a quality customer experience by offering empathy and sympathy while remaining firm enough to meet the clients collection targets.

CRM Strategy cont.

4. Leverage customer data to build prevention strategies When a customer gets his or her paycheck, every company wants to be paid first. By having the individuals payment, the universal agent is better able to negotiate. They may offer suggestions like: Can we change the due date to better fit your needs?

CRM Strategy cont.

5. Provide access to all customer contact channels More and more consumers and business people are using non-traditional means for communications. Communicate in the medium of their choice. Employing a multi-channel approach, the preventive collections program can leverage or combine voice communications with other direct contact channels, including direct mail, chat and email.

CRM Strategy cont.

6. Deliver global consistency Implement and enforce a set of operating standards for all customer care and collection interactions throughout your operation. This will ensure equally trained agents with reliable service to your clients around the world.

CRM Strategy cont.

7. Provide motivation and incentives Every client has different needs. When it comes to motivating and incenting universal agents, there are a variety of client-specific compensation models. Earnings and incentives can be based on cure and collection rate measurements.

CRM Strategy cont.

With this strategy, agents are able to engage late-paying customers and gradually move them away from the collections process, in some cases permanently. Identifying and resolving past-due issues before the customer reaches the collections stage is a proved.

Role of CRM in business strategy

Shared customer knowledge. Shared customer data ensures that each customer interaction is handled with the same degree of care while leveraging the same information across all departments, geographies and channels.

Role of CRM in business strategy cont.

360 degree consolidated customer view. The achievement of a single, enterprise-wide view of the customer relationship delivers one realtime version of all customer information, eliminates duplicate data entry, reduces systems integration complexity and empowers staff with up to date knowledge and actionable customer insight.

Role of CRM in business strategy cont.

Repeatable processes. The adoption of CRM automation software facilitates consistent processes, process improvements and best practices among all staff who use the software to become more efficient in their daily roles.

Managing customer communication

Communication play a lead role in building customer relationship Communication management stands for intensive interaction b/w customer & the organization.

Routes to CCM
1. Online routes Interactive website E-Mails Web communication Chat rooms

Routes to CCM
2. 3. Offline routes Telephone Fax Face to Face interview Mails Outsourcing Private call center

Factors affecting CCM

1. 2. 3. 4. 5. 6. 7. 8. 9. Nature of business Size of organization Number of customers Types of customers Frequency of contact Type of product Technical support available Extent of loyalty Presale interaction required

Method of CCM
1. Active method of CCM In this method organization anticipates the possible expectation of customers,& plan for effective communication accordingly. It is more direct method designed in tune with the anticipated behavioral pattern of customers

Method of CCM cont.

2. Receptive mode of CCM In this method organization reacts suitably after studying the Expectations, perceptions & Behavioral patterns & the customer interaction is tuned suitably 3. Indirect method of CCM It is based on organizations own observation

Specific skills for CCM

1. Skill to listen 2. Skill to tolerate 3. Skill to convince 4. Skill to advice 5. Skill to convert 6. Skill to educate 7. Skill to minimise fear, uncertainty, doubt. 8. Skill to add satisfaction 9. Skill to provide positive experience 10. Skill to recognise individually

Specific skills for CCM cont.

11. Skill to correct 12. Skill to build emotional response 13. Skill to help 14. Skill to fulfill needs 15. Skill to make the customer feel important 16. Skill to keep up promise 17. Skill to be available 18. Skill to be honest 19. Skill to be Honest 20. Skill to respect sentiments 21. Skill to respect Values 22. Skill to build confidence

THANK U