To Know Your Customer…. Customer Relationship Management
Customers always rule the business and market, so knowing the minds of various demographic segments make a business to survive, compete and to reach the market empire position. Identifying the potential customers is the first step in the process of sales and marketing. Many studies stated that most of the customers stop buying or doing business, only because of the negative treatment what they have experienced. So the managers should identify, analyze the data of customers, manage and improve customer relations. It enables the organizations to identify the existed and potential customers, So that they can easily communicate, create awareness about the product and can motivate the customers to buy the product.
Analyzing the data of the customers and sales history facilitates maintaining customer relations and customer retention. Customer relationship management systems make possible to collect data and sales history of the customers from various communication channels such as live chat or direct approach, telephone, email, social media and mobile apps.
Internal service quality enables external service quality, which means satisfied employees can only bring customer satisfaction. So that necessary tools should be provided to the employees to deliver better services which maximize revenues and profitability.
CRM systems are used to know the unmet needs of the customers and target markets.
Types of CRM Systems:
Customer relationship management systems are of three types, Operational CRM systems, Analytical CRM systems and collaborative CRM systems.
Operational CRM Systems:
Operational CRM Systems automate various activities of marketing such as sales, customer support, and service etc. Three main components of operational CRM is discussed below,
Sales Force automation:
Nowadays various CRM software packages enable employees to know the customer’s information with an easy access. It facilitates identifying the existed customers and prospective customers and helps in maintaining customer contents, better communication, and follow-up which in turn simplifies business and marketing.
Marketing Automation:
Marketing automation simplifies the entire marketing process such as automated marketing emails and posting up to date information in the social media. Mobile apps are also playing a great role in identifying the target customers and in maximizing sales.
Service Automation:
Service automation focuses on customer support through emails, telephone calls, and ticketing portals etc.
Analytical CRM System:
Analytical CRM systems are used for the strategic and tactical purpose; it involves proper analysis of collected customer data by using various tools such as correlation and data mining. This analysis not only helps in maximizing sales but it enables the marketers to think about the root causes of customer dissatisfaction.
Collaborative CRM System:
Collaborative CRM involves the integration of business partners and external stakeholders to maximize the efficiency in customer service. The feedback given by them is collected and it is used for the future purpose.
Reasons for poor customer service:
- Due to the organization policies
- Decision making of the top management
- Demotivated employees
- Lack of employee training
- Employee’s negative attitude
- Difference in the perception levels of the customers and companies
- Technological barriers
- Communication barriers
- Financial barriers, etc
Facts behind customer service
If the customers are treated well, then the chances are very high to retain the customers
Due to the negative attitude of the employees, customers feel uncomfortable to continue the business
Well treated customers influence the others by word of mouth
Dissatisfied customers can give negative feedback and can complain double their experience
Communication barriers and technological barriers can change the customer decision making within seconds and they can immediately shift to the other related products or services.
Customer requirements
Organizations have to fulfill the requirements of the customers as efficiently as possible, customer retention and attracting prospective customers can be possible through the customer relationship management. Customers are highly sensitive while taking the decisions related to the bank transactions and mobile services.
- Proper attention
- Clarification of doubts and questions
- Positive response
- Smooth handling
- Employee positive attitude
- Quick response
- Quick understanding of their problems
- Reliability
- Friendliness
- Employee’s knowledge towards their problem
- Professionalism, etc.
Benefits of CRM:
Reduced Cost:
CRM systems facilitate cost reduction because the improved technology and automation highly reduces human efforts and saves time. So the effective operations enable to do right things which definitely reduce the cost of production and prices.
Competitive Advantage:
Customer relationship management facilitates superior customer services and it enables to know the customer demands easily. So that managers can take steps to design strategies. The complete customer data definitely acts as a competitive advantage.
Maximization of opportunities:
Analysis of the customer data enables the marketers to know the changing customer needs and preferences. During serve competition also marketers can rule the markets by the prior actions and decisions. Increased customer services and referrals act as opportunities to strengthen the business even during uncertainty.
Customer Satisfaction:
Customer satisfaction is the ultimate focus of any business; customer relationship management can do exactly what customers want. Meeting customer expectations and maintaining healthy customer relations can bring customer satisfaction and it leads to retention of the current customers and in attracting prospective customers. Personalized communication gives value for the customers and it maximizes the loyalty and brand image.
Better Customer Service:
Automation of CRM facilitates superior customer services which highly reduces the human efforts and customer complaints. It helps in anticipating, identifying, understanding, and manage the needs of the existed and prospective customers.
CRM Challenges:
- Implementation may become tough
- May not always profitable
- Frequent communication may lead to misunderstanding.
- Customers may get frustrated
- Data may misguide the marketers
- Tough to incorporate the CRM systems
- It takes time to adaptation of CRM
