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Customer Relationship Management(CRM)

August 6, 2009
Introduction
CRM, or Customer Relationship Management, is an information system that integrates planning, scheduling and the control of pre-sale and post-sale activities within businesses.
CRM is a series of technologies and business strategies used to create customer and client relationships. CRM Analysts study stored information related to customer¬タルs habits and behaviors to create methods that increase productivity, profit and popularity. CRM careers exist in Marketing, Technology, Administration and Professional Services.

CRM Focuses
Successful organizations use three steps to build customer relationships:
determine equally satisfying goals between organization and customers
establish and maintain customer relationship
produce positive feelings in the organization and the customers
Conditions
The organization and the customers both have sets of conditions to consider when building the relationship, such as wants and needs of both parties.
organizations need to make a profit to survive and grow
customers want good service, a quality product and an acceptable price
CRM is a new concept to many organizations. If it’s new to you, here’s why most forward-thinking organizations dedicate lot of energy and resources to the set up and management of a CRM capability.
CRM can have a major impact on an organization through:
  1. shifting the focus from product to customer
  2. reform the offer to what the customer requires, not want the organization can make
  3. highlighting capability required for an effective CRM process
Enterprises Need for CRM
  1. CRM is achieved mainly by providing a better service to your customers than your competitors.
  2. CRM not only improves the service to customers.
  3. A good CRM capability will also reduce costs, wastage, and complaints.
  4. Effective CRM also reduces staff stress, reduces as services and relationships improve.
  5. CRM also helps you grow your business for customers stay with you longer, customer mix rates reduce, referrals to new customers increase from increasing numbers of satisfied customers, and teams work more efficiently and more happily.
Characteristics of CRM
ᅡᄋ reliability
ᅡᄋ responsiveness
ᅡᄋ accessibility
ᅡᄋ safety
ᅡᄋ courtesy
ᅡᄋ consideration
ᅡᄋ communication
ᅡᄋ recognizing the customer
ᅡᄋ competence
CRM as a Process
CRM can be regarded as a process, which has
particular inputs
particular components
particular characteristics
Improvement for capacity
CRM and Communications
Communication is central to any successful relationship. In terms of Customer Relationship Management, communication needs to be consistent and high quality; as determined by:
ᅡᄋ on time
ᅡᄋ focused
ᅡᄋ relevant
ᅡᄋ reliable
ᅡᄋ logical
The information contained in a CRM system allows communication to be directed at the correct audience, in the correct way. The communication system must also encourage and facilitate honest and actionable feedback
CRM and People
Successful and effective CRM people are likely to display the following keys:
Positive Attitude
People Orientation
Organizational Skills
Analytical Skills
Customer Focus
Understanding of the link between CRM and Profitability
Effective customer focus enables the organization and its staff to see both sides, and to work with the customer to arrive at a mutually satisfactory and maintain the solution
CRM Benefits
There are significant business benefits which accumulate from an effective, integrated Customer Relationship Management approach
ᅡᄋ Reduced the costs, because the right things are being done.
ᅡᄋ Increased customer satisfaction, because they are getting exactly needed.
ᅡᄋ Ensuring that the focus of the organization is external.
ᅡᄋ Increase in numbers of customers.
ᅡᄋ Maximization of opportunities.
ᅡᄋ Increased access to a source of market and participant information.
ᅡᄋ Highlighting poor operational processes.
ᅡᄋ Long term profitability and maintainability.
CRM Drawbacks
Lack of Commitment
Adapting to a customer-focused approach may require a culture change. There is a danger that relationships with customers will break down somewhere along the line, unless everyone in the business is committed to viewing their operation from the customer perspective.
Poor Communication
All the relevant people in your business must know what information you need and how to use it.
Weak Leadership
Responsibility is on management to lead by example and push for a customer focus on every project.
CRM to IT Projects
We need to recognize that most IT projects support many types of customers ranging from the external customer to internal users, and not the least of which is the company itself.
There are two set of activities followed by the IT enterprises.
1. Voice of the Customers ¬タモ This activity applies to the IT project process and provides end-users and decisions made by the IT project team.
2. Business Communication – This activity creates a single point of contact (SPOC) for the end-users and a SPOC to arrange customer coordination with the technical team. The activity interacts with internal business customers, keeping them in the loop relative to the progress of the project, involving them in designs reviews, providing their feedback to the technical team.
CRM Software
CRM Software is a large class of software programs essentially designed to help businesses manage their customer information.
1. Sales Force Automation (SFA)
Content ManagementContact management software stores, tracks and manages contacts, leads of an enterprise.
Lead ManagementEnterprise Lead management software enables an organization to manage, track and estimate sales leads. Also helps understand and improve conversion rates.
2. eCRM or Web based CRM
Self Service CRM – Enables web based customer interaction, automation of email, call logs, web site analytics, and group management.
Survey Management Software – Survey Software automates an enterprise’s Electronic Surveys, Polls, Questionnaires and enables understand customer preferences.
3. Customer Service
– Call Centre Software
– Help Desk Software
4. Partner Relationship Management
– Contract Management Software – Contract Management Software enables an enterprise to create, track and manage partnerships, contracts, agreements.

– Distribution Management Software

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