CRM (Customer Relationship Management) company wide business strategy which is designed so as to reduce the cost & increase the profitability by solidifying the customer loyalty. It gives a holistic view of each and evry customer in real time by integrating information from all data sources. CRM is quite flexible process which integrates in 3 areas that is marketing, sales and customer support. Its all about the customer relationship management concepts.
Understanding the CRM concepts :-
In the year 1990 the concept of CRM started capturing the interest of the academicians and the practitioners from the fields of IT and marketing. The early adopters of this concept were the financial services, telecom industries, automobile ,hospitality etc. In the last decade there was a massive explosion of customer relationship management in marketing and IT. There were several factors that enabled the growth of CRM ,these enablers are as follows :
- Emergence in the service economy
- Emergence in the market economy
- Global expansion of the businesses
- Aging of the population in the economically developed countries
Emergence in the service economy
The growth of the service economy was a global business phenomena. The growth in the
service economy resulted in more of the customer attention and was characterized by inseperability, which means the production and consumption of the service is done simultaneously. In service industry the marketer needs to be close to the customers when it comes for offering the service. Various service industries like hotels, airlines and financial services these services were the early adopters of the CRM.
Emergence of the Market Economy
In the year 1990 the economy witnessed a acceleration in many huge industries which included banking, telecom, airline all over the world. The firms which were market oriented started focusing on the highly competitive market started taking decisions of their own which was once controlled by the government. Since the firms have become market oriented the most of the focus was shifted towards the customers and initiated the growth of CRM.
Global Expansion of the Businesses
In order to gain more profit the firms started moving their business operations internationally and there was increased international trade. There was liberalization in the market and this trade proved to be a growth factor. Firms required stronger focus on the customer and able to capture opportunities in the new market while saving themselves in the domestic market.
Aging population of the economically developed countries
The economically advanced countries were facing an aging of their population due to the slowdown in the birth rate of the country and increase in the life expectancy rate. Therefore in these market the marketers focus more on the growth of the market rather than focusing on the share of the wallet of the customers.. The marketers are now more focused on the existing customers and meeting the changed needs by introducing suitable products and services.
There are 10 key principles of Customer Relationship Management
- Value Segmentation :- In this segmentation is based on customer preferences, needs, behaviors and economic potential which serve as a base for resource allocation descisions in marketing, sales & services.
- Institutional Memory :- When a customer interacts with the company than evryone in the organisation is aware of prior inter actions, outstanding issues & pending opportunities.
- Collaboration :-Customers are involved in specification, design and delivery of desired results.
- Touch Point Alignment :- Customers work through multiple channels so as to do business with a firm.
- One & Done :- Customer needs are solved during the first contact only.
- Real Time Information Manager :- The employees have a real time access to the right information so as to resolve the issues immediately.
- Customer Score Card :- Employment performance requirements measures are planned to drive particular customers behaviors.
- Closed Loop Processes :- Integrated front and hack offices systems ensure that information & work flow is being carried through the enterprise to their logical conclusion which enables continues knowledge capture.
- Listening and Learning Posts :- It facilitates information sharing & learning among the customers which help them to do business with the company.
- Customer Experience Management :- The organization is able to deliver a consistent and high quality experience which provides added value to the customer.
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