Posted at 01.01.2019
CRM can be explained as "the primary business strategy that involved internal processes and functions, and external networks, to create and deliver vaalue to targeted customers at a profit. It is grounded on high quality customer related data and enabled by information technology".
CRM can be viewed as from lots of perspectives.
Strategic (It really is customer centric business technique to win and keep profitable customer).
Operational (It focuses on the system of customer facing procedures i. e. advertising, marketing and customer services etc)
Analytical (It deals with the wise mining of customer related data for tactical or tactical goal).
Collaborative (It is applicable technology across organisational restrictions with view to optimizing company, partner and customer value.
Another classification of CRM
"CRM is a company-wide business strategy made to reduce costs and increase success by solidifying customer satisfaction, loyalty, and advocacy. True CRM includes information from all data sources within an organization (and where appropriate, from outside the organization) to give one, all natural view of every customer instantly. This enables customer facing employees in such areas as sales, customer care, and marketing to make quick yet educated decisions on everything from cross-selling and upselling opportunities to target marketing ways of competitive positioning tactics".
http://www. destinationcrm. com/Articles/CRM-News/Daily-News/What-Is-CRM-46033. aspx
There are two main individuals of the growth of CRM. The first is the fact that customer acquisition and retention have grown to be top management priorities. The next drivers of the growth of CRM is the trend towards e-business and the increasing need for the Internet as a customer-care and sales channel, which has brought a feeling of doubt to companies.
CRM is a term for methodologies, systems and e-commerce functions employed by companies to control customer relationships. There are numerous model to identify range of customer management e. g. IDIC model, The Qci model, the CRM value chain, Payne's five-process model and Gartner competency model etc. All model are introduced to obtain and maintain customers. Here I am going to explain only one model this is the QCi model which is all known as "customer management model".
This model involves all essential elements required to retain and find customer management. It really is more practical rather than theoretical.
This model shows some activities an organisation need to execute to be able to keep customers. Pursuing are some main component of QCi model.
This element of the QCi model make clear the value of profit percentage an organisation can get from customer, behavior of customer and share from market (penetration), and frame of mind of different customers categories and how the product/services meet the customer requirement. In addition, it analyses how well organisation match the marketplace requirement and compete competetors. It evaluates the current situation of market and customers. This understanding helps to plan effective and effective. It permits the company in retention, acquisition, efficiency and penetration of customers. It covers the strategic suggestions to customer management planning, customer transaction research, lifecycle understanding, profiling and external analysis, life span value monitoring, customer and potential client segmentation, competitor examination, tacit knowledge management, contact and management planning.
Analysis and research helps to derived understand about market, customer and value/benefit. For the bases of the analysis and understanding proposal are created and identify the proposition to each of the segments and plan the correct value-based offers. It normally split into brand; price; service; transactional interactions; romance; logistics; product. These propositions are described to customers and organization people who deliver this. Customer proposition addresses customer needs research, overall proposition development, segment proposition matching, service standards, proposition external communication and proposition interior communication.
This is the delivery/implementation of the customer management. Plans and objectives, based on the retention, acquisition, penetration and efficiency results of the analysis, and the needs of the client organizations, drive activity throughout the client life circuit from prospect through new customer and on into mature customer. This calls for the day-to-day working procedures of the marketing, sales and service support functions within the next key areas:
Conversion (Learning customers and exactly how they would like to be maintained)
Delivering the fundamentals (Support for new and changing customers)
Retention activity (Handling of enquiries acquisition and retention activity)
Value development (service, billing, tech support team, field, third-party telephone)
Managing dissatisfaction (Identifying and taking care of dissatisfaction)
Winning again lost customers
Targeting is delivering the defined propositions effectively to the customer based on the planning. Targeting comforters marketing campaign planning, buying cause id, personalization, integration with stations and over-targeting reduction.
Welcoming is the activity of ranges from simple greeting to onward all activities related to fortify the connection with customer. New customers and those changing their relationship are comfortable working with firm. It ensures that high risk (before buys) stage of any new customer welcomed.
Identification of new customers
Understanding why they were won
Initial Welcoming activity
Monitoring of early on dealings
Getting customers' views
Winning back just lately lost customers is one of the least exploited 'acquisition' methods. If a fresh competitor's inviting activity is poor then customers lost to them are likely to be the most receptive to 'come again' emails. However, it's important to make certain that it is merely good customers that are targeted for winback activity and that when they are gained back they are really treated as going back customers and not as completely new customers. Winback addresses:
Identifying reasons for loss
Managing customers out
Deciding which customers to get back
Welcoming winback customers
Information and technology underpin the whole model. Information needs to be gathered, stored and found in a way that helps the strategy, just how people work and the way customers want to gain access to the organization. Technology exists to help organisations acquire, deal with and use the great amount of information involved in managing customers. It is an enabler rather than a deliverable in its own right, but maintained badly it can also be a stopper. The technology then needs to deliver the existing information to relevant people at the right time in order for them to fulfil their role in taking care of customers. Information and Technology includes:
Sourcing and understanding customer information
Information planning and quality management
Functions of existing systems
Review of current systems
Development of new systems
An organisation's customer management people need to be recruited, managed, developed and determined within a helping structure. The word 'customer management people' must also be looked at in its widest framework, stretching to suppliers and stations as well. People and Organisation covers:
Competencies classification and gap analysis
Training requirements and resources
Objective setting up and monitoring
Supplier selection and management
Processes tend to be difficult to apply and manage formally in an environment with so many sales and marketing people. But clear, constant processes are crucial to all areas of customer management and achieving continuous and step-change improvements. Also, processes need to be constantly evaluated for acceptability from both the customers' perspective and the organisation's viewpoint. Process Management protects:
Process id and documentation
Monitoring of process acceptability