What Exactly is Customer Relationship Management?
The defintion of Customer Relationship Management (CRM) that I favor is "CRM is the business strategy that aims to understand, anticipate, manage and personalize the needs of an organization's current and potential customers"
From this we can learn that CRM is more than just a piece of software; CRM is a business strategy, one that puts the customer at the heart of the business.
"That's nothing new" I hear you say, and you would be right. Good business people have always understood the relationship between happy customers that come back again and again and creating long term, sustainable profitability.
You just have to think of the local shop owner who knew everyone of his customer's names, birthdays and particular ailments to prove that point. What is new is that there now exists the technology to enable this customer-centricity on a much larger scale.
It is said that a successful CRM implementation will allow your Customer Service, Sales and Marketing people (and anyone else in your organization) to have a holistic view of each and everyone of your customers. In theory this will enable them to make quick, informed decisions, create cross selling and up selling opportunities, measure marketing effectiveness and deliver personalized Customer Care.
Sound's great doesn't it!
The History of CRM
Following on from Enterprise Resource Planning or ERP (the business strategy that promised to automate the "back-office"), the term CRM was first coined in the mid-1990s. CRM in those days referred to the software used to help businesses manage their customer relationships. From sales force automation software (SFA) that focused on customer contact management to integrated knowledge management solutions, these were the early foundations of CRM.
The last couple of years have seen the term broaden to encompass a more strategic approach and the investment of billions of dollars worldwide into CRM solutions and services has followed.
First Things First
Successful CRM always starts with a business strategy, which drives change in the organization and work processes, enabled by technology. The reverse rarely works.
The key here is to create a truly Customer-Centric philosophy that touches every point and more importantly every person in the company. From CSR to CEO everyone must live and breathe customer focus for all of this to work.
At the same time you should look at your which processes could be re-engineered to make them more effective for your customers. Until you have done this, put away your chequebook!
The Right Technology
It is estimated that the global market for CRM services and solutions is currently worth $148 billion. That means a lot of choice when selecting your technology - from web-based solutions aimed at small businesses with less than 10 employees to solutions suitable for multi-national enterprises with millions of customers.
The Future
CRM has already made a big impact in the world of Customer Service and will continue to do so. As more and more companies become customer-centric those that fail to do so will lose competitive advantage. As technology increases to develop at a startling rate the key emphasis will be how we can fully utilise it within our business.
However let's not lose sight of the fact that Customer Relationship Management is about people first and and technology second. That's where the real value of CRM lies, harnessing the potential of people to create a greater customer experience, using the technology of CRM as the enabler.
CRM may or may not prove to be the answer to providing excellent customer care, but the philosophy of putting customers at the heart of our business is definitely a step in the right direction.
Ian Miller is Editor of The Customer Service Manager - An online resource for Customer Service Managers and professionals. On the CSM website you can read about the latest customer service trends, make use of useful management tools and sign up for a free customer service newsletter. Visit http://www.customerservicemanager.com for more details.
MORE RESOURCES:
 |
|
|
RELATED ARTICLES
CRM For Beginners - Customer Relationship Management Basics
In order to maintain a successful business, the business must understand and maintain a positive relationship with its customers. Customer Relationship Management (CRM) is the process of bringing the customer and the company closer together.
What Exactly is Customer Relationship Management?
The defintion of Customer Relationship Management (CRM) that I favor is "CRM is the business strategy that aims to understand, anticipate, manage and personalize the needs of an organization's current and potential customers"From this we can learn that CRM is more than just a piece of software; CRM is a business strategy, one that puts the customer at the heart of the business."That's nothing new" I hear you say, and you would be right.
Customer Satisfaction Is Your Business
Regardless of what business you are in - you are really in the business of satisfying customers. The degree of customer satisfaction you deliver determines the level of long-term success you will achieve in business.
The 3 Rs of Customer Service
What I am about to tell you may seem very obvious - you may even say DUH!!! but the fact is, - many company's forget the 3 R's of good customer service- Respect your Customer, Take Responsibility for Your Actions and Products and give your Customers a Full REFUND when it just isn't right. I promise you that if you follow these 3 simple rules you will never have to run after the same customer again!Respect the customer! Just about as plain as the nose on your face Right? Wrong!How many times have you been greeted in a less than courteous manner or worse yet- not at all!! Never lose the opportunity to make a great first impression- very rarely do you have a second chance to undo the damage done by that first encounter.
Creating the Right 'Viral Reputation'
Unless you are brand new to business, or have been under a rock for quite some time - one key marketing technique (which isn't new) - is called 'Viral'.Based on the word 'virus' - viral marketing or viral business simply means it 'spreads' like a virus.
Become a Customer Enthusiasm-Guru!
One thing all successful small business owners have in common is the knowledge that their business is based on enthusiastic customers. Despite their multi-tasking titles of bookkeeper, service provider and sales-manager, their most important title is Customer-Enthusiasm Guru.
How Not to Get Stiffed, Improving Your Collection Procedures
Some businesses have slow paying customers or past due balances because they didn't "train" their customers in the beginning.It is important that your customers know your credit policy and/or terms of payment, BEFORE they become a customer.
5 Golden Online/Offline Business Rules To LIVE Or DIE By
Whether online or off, if you plan on running or maintaining any type of credibility within your business, there are some guidelines that are safe to say any existing or potential customer expects if they are to do immediate or future business with you.As an online entrepreneur for over 3 years I have found that even though I don't have the pleasure of meeting face-to-face with my customers, ones perception of you and your business can be viewed as good or bad all depending on the way you handle questions or comments posted by people
interested in your product.
Marketing as a Spiritual Practice
"Marketing as a spiritual practice." It sounds contradictory - how can sales and promotion possibly be considered spiritual? But the secret is, once you truly understand that marketing isn't all about struggle, jargon, tricks or gimmicks, spiritual practice is the very root of success.
Stay - Say - Pay
Would you like to have customers that stay with you and
don't buy from your competitors?
Customers that say nice things about your business to other
people; pay you on time and
accept the fact that you might be a bit more expensive then
other suppliers?
Of course you do but how do we perform this miracle? It's
dead easy really; you only have
to consider two factors: be Reliable and be Likeable.It almost goes without saying that it's vital to have a
reliable product or service.
Under Promise & Over Perform: The Art of Managing Customer Expectations
I'll always feel warmly about Conrad's restaurant, in Glendale, California.On the morning of the Northridge earthquake, Conrad's was the only restaurant in town that opened for business, and stayed open until the last customer went home.
Add Value - And Kill Mediocrity in Customer Service
There are two kinds of customer service we all experience occasionally, outstanding customer service, and bad customer service. What we experience most of the time is mediocre customer service.
Is Your CRM (Customer Relationship Management) System Doomed To Fail?
"Right, People. Let's blast out that mail campaign we've been planning for so long.
Client Appreciation - It Means Everything!
Want to know the secret for keeping your clients forever? And what if you could keep your revenue growing by 25 percent every year, because your clients loved the way you appreciated them? In this article, you will learn how easy it is to develop a powerful client appreciation program. Once in place, an appreciation program will forever change the way you operate and manage your business.
Got A Consumer Problem?
Millions of people, just like you, end up with a consumer problem that they just can't seem to get resolved. No matter what they do.
7 Bits Of Critical Information You Cant Afford NOT To Know About Your Customers
If you think customer relationship management is just a piece of software, you're dead wrong. Customer relationship management is about understanding your customers.
Develop Loyal Customers for a Lifetime - part 1 (1 - 10)
Traditional marketing strategies encourage business owners to continually grow their businesses by adding new customers. In today's competitive world of business, it is more important than ever to aim for more transactions with existing customers by using the power of customer follow-up and attention to good service.
Complaints Are Actually A Good Thing!
Nobody likes to get complaints. They make you question your judgment, they can ruin your day, and they almost always leave you in a bad mood.
Doors by Catering to Your Clients
Clients? they are the most important influence in the success of any business. It is vital to keep them satisfied and happy.
Top Ten Strategies for Delivering 5-Star Customer Service
Customer satisfaction is valuable, but customer loyalty is priceless. In today's competitive world of business, it is becoming more and more important to deliver customer service that is unbeatable.
|