How to apply CRM to your business?
➢ CRM Stands for:
• CRM stands for Customers Relationship Management.
• A CRM system allows businesses to manage business relationships and the data and
information associated with them.
• In the commercial world the importance of retaining existing customers and expanding business is paramount. The costs associated with finding new customers mean that every existing customer could be important.
• The more opportunities that a customer has to conduct business with your company the better, and one way of achieving this is by opening up channels such as direct sales, online sales, franchises, use of agents, etc.
• The greater the need to manage your interaction with your customer base.
• Customer relationship management (CRM) helps businesses to gain an insight into the behavior of their customers and modify their business operations to ensure that customers are served in the best possible way.
• CRM helps a business to recognize the value of its customers and to capitalize on improved customer relations.
• The better you understand your customers, the more responsive you can be to their needs. CRM can be achieved by:
• finding out about your customers’ purchasing habits, opinions and preferences.
• profiling individuals and groups to market more effectively and increase sales.
• changing the way you operate to improve customer service and marketing.
Benefiting from CRM is not just a question of buying the right software. You must also adapt your business to the needs of your customers.
➢ Business Benefits of CRM:
• Implementing a customer relationship management (CRM) solution might involve
considerable time and expense. However, there are many potential benefits.
A major benefit can be the development of better relations with your existing customers, which can lead to.
• Increased sales through better timing due to anticipating needs based on historic trends.
• Identifying needs more effectively by understanding specific customer requirements.
• Cross-selling of other products by highlighting and suggesting alternatives or
• Identifying which of your customers are profitable and which are not.
This can lead to better marketing of your products or services by focusing on:
• Effective targeted marketing communications aimed specifically at customer needs.
• A more personal approach and the development of new or improved products and services in order to win more business in the future. Ultimately this could lead to:
• Enhanced customer satisfaction and retention, ensuring that your good reputation in the
marketplace continues to grow.
• Increased value from your existing customers and reduced cost associated with
supporting and servicing them, increasing your overall efficiency and reducing total cost
• Improved profitability by focusing on the most profitable customers and dealing with the unprofitable in more cost-effective ways. Once your business starts to look after its existing customers effectively, efforts can be concentrated on finding new customers and expanding your market. The more you know about your customers, the easier
it is to identify new prospects and increase your customer base. Even with years of accumulated knowledge, there’s always room for improvement. Customer needs change over time, and technology can make it easier to find out more about customers and ensure that everyone in an organization can exploit this information.
➢ Types of CRM solution:
Customer relationship management (CRM) is important in running a successful business. The better the relationship, the easier it is to conduct business and generate revenue. Therefore, using technology to improve CRM makes good business sense.
• Outsourced solutions:
Application service providers can provide web-based CRM solutions for your business. This approach is ideal if you need to implement a solution quickly and your
company does not have the in-house skills necessary to tackle the job from scratch. It is also a good solution if you are already geared towards online e-commerce.
• Off-the-shelf solutions: Several software companies offer CRM applications that integrate with existing packages. Cut-down versions of such software may be suitable for smaller businesses. This approach is generally the cheapest option as you are investing in standard software components. The downside is that the software may not always do precisely what you want and you may have to trade off functionality for convenience and price. The key to success is to be flexible without compromising too much.
• Custom software: The ultimate in tailored CRM solutions, consultants and software engineers will customize or create a CRM system and integrate it with your existing software. .However, this can be expensive and time consuming. If you choose this option, make sure you carefully specify exactly what you want. This will usually be the most expensive option and costs will vary depending on what your software designer quotes.
• Managed solutions: A half-way house between custom and outsourced solutions, this involves renting a customized suite of CRM applications as a tailored package. This can be cost effective but it may mean that you have to compromise in terms of functionality.
➢ IMPELEMENT CRM:
The implementation of a customer relationship management (CRM) solution is best treated as a six-stage process, moving from collecting information about your customers and processing it to using that information to improve your marketing and the customer experience.
• Collecting information.
• Storing information.
• Accessing information.
• Analysis customer behavior.
• Marketing more effectively.
• Enhancing the customer experience.