Customer Relationship Management - Meaning, Need and Steps in CRM

In an organization, sales representatives have the responsibility of creating brand awareness and making products popular among the end users. They are the ones who interact with the customers, understand their requirements and fulfill their needs and expectations.

What is Customer Relationship Management ?

The art of managing the organization’s relationship with the customers and prospective clients refer to customer relationship management.

Customer relationship management includes various strategies and techniques to maintain healthy relationship with the organization’s existing as well as potential customers. Orgnaizations must ensure customers are satisfied with their products and services for higher customer retention. Remember one satisfied customer brings ten new customers with him where as one dissatisfied customer takes away ten customers along with him.

In simpler words, customer relationship management refers to the study of needs and expectations of the customers and providing them the right solution.

Need for Customer Relationship Management

Customer Relationship Management leads to satisfied customers and eventually higher business everytime.

Customer Relationship Management goes a long way in retaining existing customers.

Customer relationship management ensures customers return back home with a smile.

Customer relationship management improves the relationship between the organization and customers. Such activities strengthen the bond between the sales representatives and customers.

Steps to Customer Relationship Management

• It is essential for the sales representatives to understand the needs, interest as well as budget of the customers. Don’t suggest anything which would burn a hole in their pockets.

• Never tell lies to the customers. Convey them only what your product offers. Don’t cook fake stories or ever try to fool them.

• It is a sin to make customers waiting. Sales professionals should reach meetings on or before time. Make sure you are there at the venue before the customer reaches.

• A sales professional should think from the customer’s perspective. Don’t only think about your own targets and incentives. Suggest only what is right for the customer. Don’t sell an expensive mobile to a customer who earns rupees five thousand per month. He would never come back to you and your organization would lose one of its esteemed customers.

• Don’t oversell. Being pushy does not work in sales. It a customer needs something; he would definitely purchase the same. Never irritate the customer or make his life hell. Don’t call him more than twice in a single day.

• An individual needs time to develop trust in you and your product. Give him time to think and decide.

• Never be rude to customers. Handle the customers with patience and care. One should never ever get hyper with the customers.

• Attend sales meeting with a cool mind. Greet the customers with a smile and try to solve their queries at the earliest.

• Keep in touch with the customers even after the deal. Devise customer loyalty programs for them to return to your organization. Give them bonus points or gifts on every second purchase.

• The sales manger must provide necessary training to the sales team to teach them how to interact with the customers. Remember customers are the assets of every business and it is important to keep them happy and satisfied for successful functioning of organization.

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. 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.