05-04-2012, 12:51 PM
BIRTH OF CUSTOMER RELATIONSHIP MANAGEMENT
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Throughout the 90s businesses were focused on improving internal operations. CEO’s tried to distinguish their company through operational excellence and product innovation. Middle management focused on automating departmental functions such as sales and help desk support. They believed that automation and better management of their sales and customer service process would lead to increased revenue and customer satisfaction. Vendors were all to happy to support this belief and raced to the scene with independent solutions for sales force automation, help desk and customer service functions.
Evolution of CRM
As CRM evolved, many companies assumed that just bolting on new technology (e.g., client/server, call centers, salesforce automation software, data warehouses, etc.) or adding new services would enhance customer relationships. This assumption was as pernicious as it was false. After all, you can't sell what people don't want to buy, no matter how efficient and service-oriented your sales channel. And as for gathering customer insights, be careful what you wish for. Many companies faced the unsettling paradox of having advanced data availability and analytic techniques that quickly outpaced their ability to absorb and apply the information. They were left with sophisticated tools that offered little real value.
The belief is that the third wave of CRM will bring about the ultimate transformation of customer experiences - not just by strengthening sales and service or even promoting interactions with your customers - but by creating a series of "intelligent conversations" that build over time into a long-term, meaningful dialogue.
Emergence of the CRM practice:
Looking back at a snapshot history of marketing, we can see the following clear developments and progression over the last four decades:
1. 1960’s – the era of Mass marketing, when Gibbs SR toothpaste began the first marketing of this kind with its black and white campaign.
2. 1970’s – saw the beginning of segmentation, direct mail campaigns and early telemarketing (such as publishing)
3. 1980’s – where Niche marketing made millionaires of those who were best at it.
4. 1990’s – Relationship Marketing. The explosion of telemarketing and call centres, all set up to develop relationships with customers. The recognition of the true value of customer retention and the use of Lifetime Value as a business case.
2. NATURE AND SCOPE OF CRM
What is Customer Relationship Management?
Customer Relationship Management involves the implementation of a single integrated system, which will allow an organization to effectively and consistently manage prospects and customers, regardless of where the interaction takes place. This spans outside sales, call centers, telemarketing operations, direct marketing operations and Internet applications.
Customer Relationship Management puts the customer at the heart of the organization. Tailoring communications, systems, processes and procedures around your customer needs are vital building blocks that define CRM.
CRM Basics:
Vendor Scrutiny Essential
Industries need to know that most CRM solutions are far from easy to implement and that they need acute understanding of CRM services and vendors before its actual implementation.
Vendor scrutiny is absolutely essential to ensure that an organization chooses the most appropriate solution for its business activities. This step although the first proves to be as much a perquisite as the actual implementation.
CRM systems basics focus on the idea that customers hold the key to success and this is easily evident from their phenomenal impact on sales, marketing, and market trends .While choosing a solution it is important to scrutinize each vendor and make sure that the chosen solution contributes to organization goals.
Technology vs. Customer Strategy
Merely focusing on the implementation of varied technology would not suffice. It is evident that personal contact, employee knowledge of customers, establishing an excellent rapport with the customer himself all contributes to the success of the organization. With the installation and use of technology alone customer pitfalls cannot be overcome.
CRM Rewards
CRM also provides the customer with a much needed avenue to vent his problems, ideas and suggestions. Hundreds of sales leads are lost yearly as disinterested employees pay slack attention to customer suggestions. A venue is required for these suggestions. This is supplied by CRM implementation.
The Net Result
Observing an excellent response from the organization , the rapport established with them and the interest paid to their suggestions and ideas,boosts customer interest in the organization itself along with the products and services it carries , with the net result being a hike in customer retention and customer loyalty. CRM services are vital to an organization and are a perquisite that needs to be adopted.
CONCLUSION
The Secrets out - CRM is the Best Customer Strategy to Implement
The basics of CRM include a business strategy that focuses on developing and retaining the relationships existing between customer and organization. The general perception is that CRM is but a hype and the chance of CRM failure is high. Despite this, experts have speculated that billions of dollars are going to be poured into the CRM industry making it one of the fastest growing sectors in the market.
It used to be that one could think of marketing as totally separate from the rest of the business enterprise. But with the advent of CRM or one-to-one marketing or loyalty marketing, the dynamics have changed. CRM involves knowing your customers individually and having some mechanism for interacting with them or hearing from them, and customizing your business for them. This is an inherently integrative operation. If a company is going to treat a customer differently on what he is, then the back-end of the enterprise has to be capable of modifying its behavior on what the front end finds out about what the customer wants. So back end functions, such as product or service delivery, must be integrated with front-office functions such as sales, marketing, and customer service.