Thursday, March 6, 2014

What is Customer Relationship Management or CRM?

Customer Relationship Management concerns the relationship between the organization and its customers. Customers are the lifeblood of any organization and CRM help to manage them in an effective way.

Why manage customers?

Customers are the usual source of income for an organization. Customers are also an exceptional source of information - information which is vital to enable a business to succeed; i.e. giving customers what they want.
Pareto's Law is commonly known as the 80:20 rules.
Typically in any organization:
  • 20% of customers account for 80% of your turnover
  • 20% of customers account for 80% of your profits
  • 20% of customers account for 80% of your service and supply problems
It is important to know is which customers fit into which category and then to manage them accordingly.

Managing customers entails:

  • knowing what customers want and need - which enables you to focus your production and service efforts
  • knowing which products or customers have most growth potential - which enables you to focus on developing highest potential
  • knowing which products or customers are most or least profitable - which enables you to focus on maximizing profit
  • knowing which customers will be advocates and supporters - which enables you to provide references, case studies, and to safely test new products and services
  • Knowing Which Customers or product kill most of time of service engineer : which enables you to analyzing you product performance

What is the most common sales problem which can be solved through a CRM?

  • No idea whom to sell: Most of the time sales person consume their sales time with non-productive customer because they didn’t know who is out target audience is.
  • Never Plan for a day or Week: Most of the time sales person don’t have plan for his daily or weekly activity and because of this organization sales and employee performance gets down.
  • High attrition rate: In today era where employee switches his job in every year or 2 year time’s all relevant information gets misplaced.
  • Customer history: As we use different communication mode and account manager get change so it’s difficult to know customer history.
  • Real time information sharing: Some time it takes more than require time to share information with-in a organization or team.
  • Return on investment done on marketing Activity : We spend a big amount of our budget on Marketing activity like Advertisement, participation in exhibition but never get a track or analysis that how much business we had generated through these activity or where to spend more or where to cut the budget but a CRM will help in this.
  • No repeat Orders: Once Sales Person gets order he forget his customer and organization didn’t get repeat orders and as steady shows that getting a order from new customer taken 80% efforts but same time with help of 20% efforts we get orders from existing customers.
A CRM not help us to manage our relations with customers it also help us to analyzing customer requirement and our product performance. A good CRM helps management to get over different sales hurdle and enable to sales team to give their best performance every time.

No comments:

Post a Comment