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Customers are the greatest asset your business has so it makes sense to take care ofthem as much as possible. For one thing, serving existing customers is very costeffective in the long run (acquiring new customers costs up to five times as much asserving existing ones). What's more, this reputation for service enhances yourcompany's reputation which leads to even more business. It's a win-win situation,but how do you manage it in the modern complex business environment? That's whereCRM comes in.
With its origins in database marketing, Customer Relationship Management (CRM) isessentially a strategic use of IT to develop your relationship with your customers.CRM software uses sophisticated data analysis to glean insights into customerbehaviour and requirements. This lets you so determine their precise wants andneeds. And equally importantly, it makes sure that information is in the hands ofthose who actually deal with your customers so they can deliver what the customerwants and needs.
To illustrate the value of CRM to your company, we'll look at three majorapplications: sales force productivity, customer service, and marketingeffectiveness.
CRM boost sales force productivity in many ways. Firstly, it provides accurate theup-to-date information that the sales force needs. But strategic CRM also providesthe tools to put that data into use. This empowers your sales team. They can nowfocus totally on the customer's needs without being distracted by the mechanics ofthe operation.
For this to happen, you need a CRM solution that enables your sales operation toshare information. This will allow them to instantaneously create custom quotes andproposals and configure products and services to meet customer needs. It'sessentially a matter of personalisation and all part of providing an exceptionalcustomer experience.
Next we'll look at how CRM works in the all important field of customer service.Customer service involves forging a relationship with your customers. It requiresdeveloping responsiveness to their needs. This requires information that is timely,accurate, and readily available to those who need it. It's a vital way todifferentiate your business. And let's not forget after-sales service. CRM gives youthe tools to follow up on all customer transactions and let your customers knowyou're there to support them.
Finally, there's the all important factor of marketing effectiveness. CRM's rolehere is to use technology to create, automate, manage and track the efficacy of yourmarketing programs. This means firstly having the right tools. These tools will giveyou a clear picture of your market and so allow you to develop targeted andpersonalised marketing campaigns. What's more, they will enable you to optimallyallocate funds and produce accurate forecasts. Targeting your campaigns will beimproved too. For example, you can set up a system to group together customers withsimilar profiles to target with a marketing campaign.
Essentially, CRM is the application of IT to the age-old methodology of taking careof your customers. The man in the corner shop could keep all the data in his head.But in the complexity and volatility of the modern business environment, you needthe strategic IT driven CRM solution. Using effective CRM can mean the differencebetween success and failure. Efficiency translates into increased customersatisfaction, your competitive edge, and ultimately, improved ROI.
