Customer Relationship Management
By Rupal Jain
Wikipedia defines Customer Relationship Management (CRM) as a
multifaceted process, mediated by a set of information technologies
that focus on creating two-way exchanges with the customers so that
firms have an intimate knowledge of their needs, wants, and buying
patterns.
In this way, CRM helps companies understand, as well as anticipate the needs of current and potential customers.
It refers to those aspects of a business strategy which relate to techniques and methods for attracting and retaining customers as well as combining the organisational philosophies, values, mission, vision and objectives to maximise the customer loyalty and satisfaction thereby ensuring continuous growth and profits ; however; it may vary in size, duration, scope and quality.
In business, loyal customers are more profitable since they promote the products/ services through word-of-mouth publicity.
The first known organised attempt of CRM was by Wal-Mart, America’s largest chain of departmental stores.
Customer Relationship Management is rightly explained as a management process of acquiring customers by understanding their requirements, retaining customers by fulfilling their requirements more than their expectation and attracting new customers’ specific strategies marketing approach.
CRM has many advantages which are stated below: -
1. Helps in understanding the customers, their needs, wants, motives, likes, dislikes, taste and preferences.
2. Facilitates identifying an organisation’s target customers and focusing on the best one which helps the firm to optimise their sales and revenue.
3. Maximises customer satisfaction and boost customer loyalty which builds long term relationship.
4. Provides appropriate training and development to the employees; which offer scope for growth and continuous improvement to the staff.
5. Helps the key functionalities of the firm which includes marketing, sales, research & development, service, lead and opportunity management.
In modern scenario there are different channels of communication to enhance CRM which includes direct marketing, internet, e-mail, telephone, fax etc.
Finally, to conclude CRM is referred as a methodology or a tool that helps business to manage their relationships with the customers also including the capture, storage and analysis of customers in an organised way.
As said that the problem in business is not when your customer goes to the competitors,
However, the problem is when he/she doesn’t come back since the cost involved in retaining the existing customers is approximately ten times lesser than attracting a new one, thus, with an effective CRM strategy a firm can retain its customers as well as gain new ones.
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