CRM is the acronym for the term “Customer Relationship Management”. With an effective CRM strategy, a business can increase revenues by: a company's relationship with the customer would be the biggest asset in the long run. . but to be aggressive and contact the customer himself in order to establish a dialogue. Poor Versus Excellent Execution strategy as a means to developing customer relationships approach advocating the establishment and development. With the introduction of advanced customer relationship management (CRM), Without an effective CRM strategy, businesses run the risk of missing the mark.
By being customer centric. Becoming a truly customer centric organization takes time, but you can start of all small.
How to Create a Customer Centric Strategy For Your Business
We share 4 best practices to becoming a customer centric company. Customer centric is a way of doing business with your customer in a way that provides a positive customer experience before and after the sale in order to drive repeat business, customer loyalty and profits.Webinar: Strategic Account Planning to Drive Sales Results
But, a customer-centric company is more than a company that offers good service. Both Amazon and Zappos are prime examples of brands that are customer centric and have spent years creating a culture around the customer and their needs. Their commitment in delivering customer value is genuine — In fact, Zappos is happy to fire employees if they do not fit within their customer centric culture! But, how important is being customer centric? What does it mean to be customer-centric?
Customer centricity is not just about offering great customer service, it means offering a great experience from the awareness stage, through the purchasing process and finally through the post-purchase process. The challenges of becoming a customer centric organization The power shift between brand and customer happened during the economic downturn.
Customer relationship management
Customers became more selective in which brand they chose to spend their money with — The winning brands were the ones who treated their customers with respect, with great service, and built a relationship with them that still exists today. And during the same time as the recession, social media marketing and social selling exploded onto the scene and mobile became a major part of the customer journey.
Customers can now compare products and services in real time and across multiple devices, which has presented a huge challenge for many brands. Research has found that companies are struggling with this change and are unable to become a customer-centric organization — with the biggest challenge not being able to share customer information across departments. Most companies do not have all of the components in place to claim they are customer centric, but the most important part to remember is this: You need to start with your customers, not your products and focus on what your customers want to do.
Thus, the customer centric brand creates products, processes, policies and a culture that is designed to support customers with a great experience as they are working towards their goals.
The four best practices that stand out regarding customer-centricity are: Brands that are committed to customer centricity are passionate, and truly believe the customer comes first. Marketers inside customer-centric organizations understand what customers want, and use customer data to capture customer insights and share this across the organization.
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 For the ultimate in tailored CRM solutions, consultants and software engineers will customise 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 customised 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. How to implement 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. Stage 1 - Collecting information The priority should be to capture the information you need to identify your customers and categorise their behaviour.
Those businesses with a website and online customer service have an advantage as customers can enter and maintain their own details when they buy. Stage 2 - Storing information The most effective way to store and manage your customer information is in a relational database - a centralised customer database that will allow you to run all your systems from the same source, ensuring that everyone uses up-to-date information.
How to Create a Customer Centric Strategy For Your Business
Stage 3 - Accessing information With information collected and stored centrally, the next stage is to make this information available to staff in the most useful format.
Stage 4 - Analysing customer behaviour Using data mining tools in spreadsheet programs, which analyse data to identify patterns or relationships, you can begin to profile customers and develop sales strategies. Stage 5 - Marketing more effectively Many businesses find that a small percentage of their customers generate a high percentage of their profits.
Using CRM to gain a better understanding of your customers' needs, desires and self-perception, you can reward and target your most valuable customers. Stage 6 - Enhancing the customer experience Just as a small group of customers are the most profitable, a small number of complaining customers often take up a disproportionate amount of staff time. If their problems can be identified and resolved quickly, your staff will have more time for other customers.
Potential drawbacks of CRM There are several reasons why implementing a customer relationship management CRM solution might not have the desired results. There could be a lack of commitment from people within the company to the implementation of a CRM solution. Adapting to a customer-focused approach may require a cultural change.
There is a danger that relationships with customers will break down somewhere along the line, unless everyone in the business is committed to viewing their operations from the customers' perspective. The result is customer dissatisfaction and eventual loss of revenue. Poor communication can prevent buy-in. In order to make CRM work, all the relevant people in your business must know what information you need and how to use it. Weak leadership could cause problems for any CRM implementation plan.
The onus is on management to lead by example and push for a customer focus on every project. If a proposed plan isn't right for your customers, don't do it. Send your teams back to the drawing board to come up with a solution that will work. Trying to implement CRM as a complete solution in one go is a tempting but risky strategy.
It is better to break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones. Consider starting with a pilot project that incorporates all the necessary departments and groups but is small and flexible enough to allow adjustments along the way.
Don't underestimate how much data you will require, and make sure that you can expand your systems if necessary. You need to carefully consider what data is collected and stored to ensure that only useful data is kept.
Avoid adopting rigid rules which cannot be changed. Rules should be flexible to allow the needs of individual customers to be met. Therefore it is vital to choose your supplier carefully. Making the wrong choice could be expensive and even jeopardise your business. Before implementing a solution based on CRM technology, you might want to ask any potential suppliers the following questions: