Customer Relationship Management in a business is driven by the changing consumer attitudes. These businesses are fueled by expectations induced by the internet and the increasing moods of self-reliance among customers; therefore such businesses have to compete in an environment that gravely acknowledges the importance of communication, buying processes, data management, delivery, and service for long-term profitable relationships for effective customer relation management. There are standards nowadays, however, that customers would like to see with the companies that they patronize for their needs.
What customers expect from good customer relationship management
- Controllable buying process. – They’d prefer it if the services were easy to navigate. Information, comparison, selection, easy searching, usage, and responding are descriptions of good service.
- Favorable price deals. – Quality customer relationship management means that customers can get the best package deals (including delivery) and prices without compromising quality whatsoever.
- Quickest, slickest delivery system. – Customers would actually love it if delivery was free.
- All payment options – Customer relationship management becomes better when all payment options are made available and secure for your customers.
- Communications affixed to particular need. – Such should be computerized, complex, and caring.
For quality CRM, the above standards apply to whatever the form of trading, whether direct, traditional, retail, e-commerce, wholesale, or a combination of more than one form. Such attitude standards are best put together with the development of new technology, the growing convergence of communications whether emerging or new, and the distribution technologies such as ‘fixed link’ telephony and telemarketing, internet and VOIP, mobile telephony, SMS, Digital TV, cable, satellite, and the like as this leads to an even bigger focus on customer relationship management. It has been realized that the way it can be re-organized and more profitable is through technological change.
At present, holistic, consistent, and dynamic qualities are what organizations look for. To achieve such and at the same time gain a sustainable competitive advantage in customer relationship management, there needs to be cooperation and coordination with the management team, staff, and suppliers of the company. This is so that the delivery of maximized performance can be helped through reasonable and cost-effective use of technology. There are certain steps one must take in order to achieve such things like:
- Defining profitable market sectors and customers
- Understanding the needs and expectations of customers
- Identifying profitable propositions for products and services
- Creating efficient, effective, adaptable, and cost effective infrastructures.
Customer relationship management is achieved when the relationship between the business and customer is managed in such a way that the former is able to measure, create, increase income for themselves and even reduce costs for the latter to generate a positive lifetime value across the portfolio.
Such customer relationship management expects of the organization to know the answers to certain questions such as:
- Which of my customers are profitable or unprofitable?
- Do I know their lifetime value
- Which of my products and services are they buying and which aren’t?
- Have I measured my customers’ purchase behavior patterns? (loyalty, retention, repeat purchases, multiple product purchases)
- What channels would customers prefer?
- Who are my most profitable customers and what is their ranking/grouping (based on risk, product service grouping, profit, and revenue)
- What strategies can I use to improve a customer’s profitability profile?
It is also expected of a good customer relationship management that the organization deliver customer value. The customers should feel that the organization understands what they want, communicates with them, provides them with added value, gives them reasons not to switch, and treats them as individuals. Achieving this means focusing on both sides of the equation; considering the customer communications management, process quality management, and the three key delivery mechanisms: proposition, processes, and people.
Having effective customer relationship management in your organization means positioning the customers at the center of their business. It also means that the business has streamlined customer management by incorporating customer ‘touch points’ like marketing, customer service, and payment in a way that fits customer standards and satisfaction for their loyalty to occur almost naturally. Applying such principles in your business is not so that you can achieve a ‘fad’ in your business. This is a business philosophy that works for the betterment of revenue, costs, and loyalty in your customer base. That is why it’s vital to have quality customer relationship management in your business.