What is CRM?
Customer relationship management (CRM) combine business strategy and technology to identify, acquire and maintain profitable customer relationships. CRM creates a comprehensive view of a customer across all channels by analyzing the information collected during each transaction and interaction (such as purchases, support calls, returns and other activities). This multidimensional analysis provides a wealth of customer information. Some customers are more valuable than others, so organizations need to maximize their marketing, product and service investments based on a customer’s true value to the business. Better Management provides comprehensive resources on Customer Relationship Management topics to help you develop strategies for optimizing your customer relationships.
Goals of CRM
1) Increase customer revenue and profitability over time.
2) Increase customer satisfaction and loyalty by providing better customer service.
3) Optimize management of customer life cycles.
4) Improves the efficiency of your sales and technical personnel.
5) It provides easy access to customer records, contact details, assigned assets and sales development.
Customer relationship lifecycle
There are three main areas that focus on customer satisfaction,
The professional sales team predicts and presents the real-time analysis of information and distributes it to the company and business partners. Marketing focuses on personalizing customer preferences and providing satisfying experiences. Service is associated with the company’s call centers and coordinates the interaction between web, email and other communication media.
Customer management tools
1) Email, telephone and mail.
2) The Internet should be one of your main sales research tools. News articles, financial statements, and the company’s website are often excellent indicators of what kind of business your customer is really doing.
3) Promotional material such as a mouse pad or t-shirt with your company name will serve as a subtle part of your relationship.
How much does CRM cost?
A recent (2001) survey of more than 1,600 business and IT professionals conducted by The Data Warehousing Institute found that nearly 50% had CRM project budgets of less than $ 500,000. That seems to indicate that CRM doesn’t have to be a budget breaker. However, the same survey found a handful of respondents with a CRM project budget of more than $ 10 million. License costs for a typical web-based CRM solution range from 60- $ 80 / month per user. However, the major costs associated with CRM are not the licensing costs, but the time an organization spends keeping the CRM system current. With many CRM solutions, the value of the time invested to keep the system up to date is 10X the cost of CRM licenses. Low user acceptance is often a challenge because it is difficult to get teams to abandon existing processes. This is especially true when the alternative requires an additional 30-60 minutes of data entry each day.
What causes CRM projects to fail?
The lack of communication between everyone in the customer relationship chain can lead to an incomplete picture of the customer. Bad communication can cause technology to be implemented without proper support or buy-in from users. For example, if the sales team is not fully sold for the benefits of the system, they may not enter the type of demographics that are critical to the success of the program. A Fortune 500 company is engaged in a CRM implementation for the fourth time, mainly because the sales department has resisted all previous attempts to share customer data.
Current developments and news of CRM
*Quantum Corp., a storage provider, has announced it has received two distinct awards for achieving excellence in all key aspects of the customer experience through its service and support programs.
* For the second year running, Quantum has won a NorthFace ScoreBoardSM Award for exemplary customer service from Omega Management Group Corp..
* Quantum has also been honored as the winner of a Service & Support Professionals Association (SSPA) 2006 STAR Award for Best Practices.
*COMET Group chooses Kaidara to improve customer service and support.
Customer relationship management today it is about tracking and analyzing explicit information about current customers and sales prospects. CRM software must be deployed in a rigorous, disciplined, coordinated manner to achieve every promised potential.