The importance of CRM in marketing - Fourth Source
If you are working in the sales and marketing division of your company, you will be familiar with the term “Customer Relationship Management”. Traditionally, Customer Relationship Management (CRM) refers to the strategies marketers employ to actively manage the customer. Because, in experts' opinion – there is more to CRM that just customer relationship management. New-age CRM is capable of providing a lot.
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 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.
Customer relationship management
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.
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.eCRM or electronic customer relationship management with Examples - Business Studies - Mathur Sir
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.
Customer relationship management
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.
The importance of CRM in marketing
Avoid adopting rigid rules which cannot be changed. Rules should be flexible to allow the needs of individual customers to be met.
In fact, CRM is much more than technology.
- Importance of Customer Relationship Management (CRM)
It's an entire philosophy for the way your company manages and strengthens your relationships with your customers. When it's used properly, CRM is integrated into a comprehensive marketing strategy.
If it's treated as a standalone solution, it lacks the synergy it needs to deliver measurable results. As a business owner, it's vital to understand the role of CRM in marketing your products and growing your customer base.
Mission statements aside, many businesses are so focused on products and processes that they neglect customers. When CRM is the cornerstone of your marketing strategy, you are forced to refocus your messaging on customers.
Importance of Customer Relationship Management (CRM)
CRM is a tool for collecting real-world market data about your customers. With adequate collaboration, your marketing personnel can then use that data to coordinate campaigns that are in tune with target markets.
Customer relationships are what CRM is all about. But the process of building customer relationships is what marketing should be about, too.
Marketing efforts that leverage CRM have the net effect of incorporating the goal i. CRM lets you track the effectiveness of your marketing campaigns.