Articles on Customer Relationship Management
Customer Relationship Management
Customer Relationship management is the strongest and the most efficient approach in maintaining and creating relationships with customers. Customer relationship management is not only pure business but also ideate strong personal bonding within people.
Origin of CRM
CRM originated in early 1970s when the business units had a manifestation that it would be advisable to become customer emphatic rather that product emphatic.
Features of CRM
Customer Relationship Management is a strategy which is customized by an organization to manage and administrate its customers and vendors in an efficient manner for achieving excellence in business.
Importance of CRM
Customer Relationship management is the strongest and the most efficient approach in maintaining and creating relationships with customers. Why a CRM System is always important for an organization is discussed in detail.
CRM and Marketing
CRM has brought up new dimensions in the field of marketing by significantly improving marketing functioning and execution. Intuitive CRM associated marketing strategies like direct marketing, web marketing, e-mail marketing etc.
CRM and HR
An organization is always benefitted by Employee Relationship Management if it is implementing it with CRM strategies with clear rules and guidelines.
Misunderstandings about CRM
Many companies have misconceptions about CRM in regard to assessing customer satisfaction in order to enhance business. There are several misunderstandings in Customer Relationship Management to be checked otherwise these may cost the organization revenue and profits.
Benefits and Challenges of CRM Software
This article discusses the benefits, challenges, and the future of CRM or Customer Relationship management software and solutions. The key theme in this article is that the future of CRM would depend on web 2.0 and the integration of the CRM solutions into the overall organizational process automation and process integration.
CRM (Customer Relationship Management) Software and Its Importance
CRM or Customer Relationship Management is a holistic and comprehensive approach to the activities that are centered on relationship management. The focus of this article is on analysis rather than description. The key theme in this article is about how the implementation of a CRM solution adds value to the upstream as well as the downstream processes of customer management and greater visibility over the sales and marketing cycle.
What is Customer Relationship
In CRM the alphabet R means relationship. Relationship between any two parties is actually the interaction or transaction done between the two over-times or consists of a continuous series of synergistic episode of interaction many a times.
Types of Customers
Customers play the most significant part in business. Customer are of different types, like - Loyal, Impulsive, Need Based Customers, Wandering Customers etc.
Orientation of Customers
Orientation of Customer means how the customers preferences are possessed. For example a customer might be - cost oriented, value oriented or technology oriented.
Customer modeling is the process of predicting and forecasting behavioral aspects of customers future perspectives. The process includes identification of marketing and campaigning targets and optimizing predictive analysis.
For a developing business it is very important to understand who are the best customers, how to find more customers like these and where to find. Customer profiling starts with identification of relevant information regarding all the satisfied existing customers.
Regression scoring is one of the most difficult but more precise marketing technique as compared to customer profiling and modeling. Lets understand the process and different types of regression scoring.
Quality of Relatiosnhip with Customers
Delivering best quality services to customers is considered the most efficacious way to ensure that an organization stands out from a group of competitors and avail the privilege to be known as best among all.
Need of Relatiosnhip with Customers
Building relationship with customers in current market trends is the most important aspect that an organization should focus on. The substantial outcomes of building a quality relationship is explained in detail.
Customer Relationship with Supplier
For a positive growth of business all customers have to depend, directly or indirectly, on suppliers. Therefore customers should work on building a strong and long-lasting supplier relationship.
Cost Sensitivity of Customers
Price sensitivity can be defined as the consciousness of the customers to cost windows or range within which they make dealings. All the customers are always cost sensitive and concentrate basically to buy products on cheap rates.
Bargaining Power of Customers
It is very important aspect for customers to have an intense bargaining power to sustain and remold their business strategies effectively and remain in the competition.
Customer Relationship Measurement
Customers are the most important part of any business. By measuring customer satisfaction a supplier can maintain a long term relationship with them and secure their future business.
Market Research and CRM
Integration of Market Research and CRM has turned out to be very efficient as it saves time for analysis and gives more accurate and authentic results as compared to the tradition market research tools.
Market Research Process
The Market Research Process involves a round of separate stages of data interpretation, organization and collection. The main steps involved in the Market Research Process are discussed in detail.
Desk Research is the research technique which is mainly acquired by sitting at a desk. There are 2 types of desk research techniques - Internal Desk Research and External Desk Research.
Field Research deals with creation and collection of actual and authentic information by field of operation in any organization. The importance sources for Field Research are discussed in detail.
Data Analysis and Compilation
After the information is collected from Desk and Field research, the raw data must be compiled so that the analysis can be performed and data can be broken up into respective parts and segments.
The market research is normally outsourced to third party agencies by organizations and in turn they create a professional report to the organization. Important characteristics of the report are discussed in detail.
Action Plan in Report Preparation
Describing the action plan in the report preparation process is very important as it concludes the report by defining the final actions to be taken care of. Important aspects of an ideal action plan are discussed in detail.
The aim of strategic CRM is to concentrate and enhance the knowledge about customers and use this knowledge to improve and customize the interactions with customers to maintain a long-term relationship with them.
Operational CRM is mainly focused on automation, improvement and enhancement of business processes which are based on customer-facing or customer supporting.
Analytical CRM supports organizational back-office operations and analysis. It deals with all the operations and processes that do not directly deal with customers.
Collaborative CRM entangles various departments of organization like sales, marketing, finance and service and shares the customer information among them to highlight better understanding of customers.
Customers Response - Introduction
Customer response is the reaction by the organization to the queries and activities of the customer. Good customer response is an essential asset for an organization.
Measuring Customer Response
It is important to know how to measure customers responses and what can be achieved after accurate measurement. For this it is necessary for an organization to incorporate performance indicators which are discussed in detail.
Medium of Customer Responses
The customer responses can be provided through any of the media. All the medias through which we can gather customers responses are discussed in detail.
Qualities of a Good Response
It is very important to collect the message or feedback intelligently from the customer, analyze the problem effectively and then respond to them. All the important qualities of a good response are discussed in detail.
Response in Consumer Sector
In consumer sector, suppliers most probably come in contact with distributors or middle-men rather than directly to customers. For them, distributors are the actual customers and had to be in contact with them at all the business stages.
Response in Core Sector
In Core sector the interaction happens directly between supplier and customers due to type of work and the reason of building total relationship with customers.
Customer Acquisition - Introduction
Acquiring a customer depends on how effectively the organization is able to build a comprehensive relationship with that customer. Customer acquisition is the process of acquiring new customers for business.
Customer Life Cycle
Customer Life Cycle helps the organization to determine the purchasing power and pattern of customers. The are basically 5 stages of customer life cycle which are discussed in detail.
Customer Acquisition Cost
Customer acquisition cost is the cost which suppliers invest to acquire a new customer. This cost is less than the overall value of customer in the entire customer life-cycle.
Measuring Acquisition Equity
Acquisition equity is the potential monetary value of acquisition for the organization. Measuring acquisition equity is indigenous and simple process to implement, the only hurdle is the collection data before this calculation is made.
Customer Loyalty - Introduction
Customer Loyalty means that customer is sticking to the supplier on certain grounds though he may be having other options also. Customer Loyalty is when a supplier receives the ultimate reward for his efforts.
Customer Loyalty & Satisfaction
Many organizations consider customer loyalty and satisfaction as same. But this is not true as the customer can be delightfully satisfied but he may be or may not be loyal.
Drivers of Customer Loyalty
It is very important for an organization to identify the factors which drive customer loyalty. These factors help the organization to manage customer loyalty in a better and efficient way.
Customer Loyalty Breakers
When customers end up his relationship with suppliers, he/she breaks the loyalty with the supplier. All the important reasons which are responsible for loyalty break ups are discussed in detail.
Tracking Customer Loyalty
For maintaining customers loyalty it is very important by organizations to track their loyalty. Main methods of tracking customer loyalty are discussed in the article.
Increasing Customer Loyalty
It is necessarily required for an organization to interact and communicate with customers on a regular basis to increase customer loyalty. Important aspects of increasing customer loyalty are discussed in detail.
Customer satisfaction is a part of customers experience that exposes a suppliers behavior on customers expectation. It also depends on how efficiently it is managed and how promptly services are provided.
Why Dissatisfaction in Customers
Their can be many reasons for the customers to become dissatisfied. Some of the important reasons are discussed in the article.
Measuring Customer Satisfaction
Measuring customer satisfaction helps in identifying specific customer information which is needed to run business smoothly.
Methods of Measuring Satisfaction
The tools or methods to measure customer satisfaction needs to be defined sophisticatedly to fulfill the desired norms. Main methods to measure customer satisfaction are discussed in the article.
Factors affecting Customer Satisfaction
Customer satisfaction is the overall impression of customer about the supplier and the products and services delivered by the supplier. Factors that could affect customer satisfaction are discussed in the article.
Customer Retention - Introduction
Customer Retention is the process when customer continues to buy products and services within a determine time period. More is the possibility to retain customers the more is the probability of net growth of business.
Customer Retention Strategy
The important strategies that should be implemented for increasing customer retention are discussed in detail in this article.
Determinants of Customer Retention
The main determinants of customer retention as per the market evidences are discussed in detail in this article.
Methods/Tools for Customer Retention
Some of the important methods and tools for customer retention are discussed in detail.
Myths about Customer Retention
Many companies have misconceptions about customer retention in regard to assessing customer satisfaction in order to enhance business. Lets understand these myths about customer retention in detail.
Benefits of Cloud CRM for Small Businesses
This article discusses the benefits of using a cloud based CRM (Customer Relationship Management) system for small businesses. The key theme in this article is that small businesses that operate on thin budgets can benefit from savings as well as actualize the efficiencies from a cloud based CRM system.
Practical Tips for Effectively Implementing Salesforce
The article focuses on multiple practical tips in order to implement salesforce effectively. Three different tips are discussed briefly and clearly stating on its practical implementation.
Authorship/Referencing - About the Author(s)
The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.