What is Customer Relationship Management?
CRM (Customer relationship management) is a management strategy that employed by companies to make their business more effective by understanding and fulfillment of customer needs. It enables companies to better understand the customer behavior to give rise to an effective marketing that result in expected profits. According to the objectives of organization CRM will run certain strategies to reach the standards of business. This is made possible by making organization to be a customer valued, where companies can contour sales immensely and their services to end users. The major factors to maintain effective customer relationship are to equip loyal customers, reach customer expectations, meet customer requirements and retain the customers.
Why do we need of CRM?
The major objectives of CRM:
- Customer Value
- Customer satisfaction
- Customer Interaction
- Customer services
All these factors collectively build customer relationship management. At the same time with this management companies achieve marketing with “4P’s price, product, place and promotion”. Basing these 4P’s the customer satisfaction will be acquired by organizations meeting all the end user requirements. The companies depending upon the customer intimacy they will design and manufacture such a product at affordable cost that will meet customer expectations, needs and making loyal to their organization. Once the customers are satisfied, the relationship with them will be maintained by companies to retain loyal customers for long time.
Organizations delivering quality products are not alone enough, besides it requires good interaction with customers. The communication tools being a part of promotion techniques will allow companies to reach their customers. With advent of technology marketing has turned to an easy process where customers can purchase products and make payments electronically. The promotion techniques include advertisement through television, radio, internet and campaigns. CRM in business will operate on behalf of entire company coordinating all departments and information flow within organization. The information flow includes mainly customer’s details where they utilize this data for customer service, to inform about new products and for other sales. The security for customer’s information will be provided by giving accessibility to specific employees to control the flow and updates regarding purchases, payments and sales done.
The companies to adopt customer relationship management have to implement it in their organization. The implementation requires “vendor contract and license, project management, software development, data migration, and training, support”. The information system according to company standards is developed in software development phase that coordinates information of all units in organization. The software built will be customer centered where customer information is prominently maintained in centralized database as a part of business to give their services. The implementation is cost efficient as it comprises expenses for buying license from vendor, to develop a software application, maintain costs and costs for training employees using this information system.
Components of CRM:
There are three components of Customer relationship management which are described below:
Customer: the main source of every organization is the customer because they generate profits to the company. Customers will increase the growth of the company. It is difficult to identify real customer because buying is decision and collaborative activity between the people. Buying is decision making process which is difficult to isolate real customer but, Customer relationship management will integrate with enhanced information systems that can culminate customers.
Relationship: The Company’s relationship with the customers is a two way interaction that can for short term or long term and this is purely depended on the communication. Maintaining relation with customer is discussed in Appendix B. Customers choice is given more importance by the company and the cost incurred will be reasonable because customers can compare price and features of commodity with other companies.
Management: CRM evolves as per the corporate era and make continuous changes accordingly in the organization. The CRM manages the competition between the industries by getting information of the present market opportunities and take the customers information into consideration to build the products. With applications like field service, catalog management, marketing programming and analysis, help the customer relationship management to make changes in the organization.
Workflow of CRM in an Organization
The following are steps that include in functioning of customer relationship management.
Collecting Customers Data and Information: The basic information of the customer like name, address, telephone number, e-mail is taken by the companies to maintain the records of their customer for future reference. The information should include the date and time when the company interacted with the customer and vice versa. The information which is maintained by the company will be centralized within the organization but, only one particular department is given access to check the information and if required can manipulate the data.
Analyzing to predict Customer Behavior: The records maintained will be utilized the company at any point of time to analyze the customers view and build the product accordingly. “Using sophisticated modeling and data mining techniques, behavior prediction uses historical customer behavior to foresee future behavior”.
Marketing Campaigns: Applying the results of analysis: The campaigns are conducted by the companies after perfect review is made from few customers. The product is designed by keeping the customers preferences in view. The firms will exhibit their product through emails, advertisements in the Internet and televisions etc. To make analysis the company will contact the customers to check with the results.
Measuring Results, Revising Hypothesis, and Repeating this Workflow Process: The organization will review the campaign which is done recently and find if they reached the company goals. The product review will be taken place in order to occupy better position in the market. With all the results in mind the company will try to establish further improvement for the growth.