Customer Relationship Management..a strategy used to learn more about customers' needs and behaviours in order to develop stronger relationships with them. It involves a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends.

Why bother? Companies, as they grow, lose the personal relationship they once had with their customers. 70% of a customers buying decision is based on how the business treats them. More information on customers can help improve business treatment of customers

What is the goal of CRM? to help businesses to use technology and human resources to gain insight into the behaviour of customers and the value of those customers and thus:- –provide better customer service –make call centres more efficient –cross-sell products more effectively – help sales staff close deals faster – simplify marketing and sales processes – discover new customers – increase customer revenues.

What Happens? Data collected from operational systems (like sales and inventory systems) flows into analytical systems that can help sort through these records for patterns e.g. data mining tools are used. Company analysts can then comb through the data to obtain a view of each customer and pinpoint areas where better services are needed.For example, if someone has a mortgage, a business loan and a large commercial account with one bank, it is advantageous if the bank is aware of this each time it has any contact with him or her

Questions before implementing CRM What kind of customer information are you looking for and what will you do with that information? e.g. customers' life stages used to market appropriate banking products (e.g. mortgages, savings deals, health insurance) at the right time to fit their needs. What ways do customer information come into the business and where and how is this data is stored and used? (e.g. mail campaigns, websites, bricks-and-mortar stores, call centres, mobile sales force staff, marketing and advertising efforts) How many channels can a customer can use to access the company? The more channels, the greater need for the type of single, centralised customer view a CRM system can provide

Sample CRM data responses to campaigns shipping and fulfilment dates sales and purchase data account information web registration data service and support records demographic data web sales data

Example : Continental Airways Created a data warehouse to store and enable analysis of customer data, and the effects of promotions. –Flight attendants get a list with detailed information on passengers. –Company apologises and gives a free drink or airmiles to customers who experience delays – thus increasing business. –Gate attendants can reroute certain passengers in the event of a delay, depending on what type of customer they are. “the most valuable customers get the best service. “ which leads to increased revenue from them

But ….. the majority of CRM projects have failed.

What causes CRM projects to fail? Lack of communication between everyone in the customer relationship chain can lead to an incomplete picture of the customer. Poor communication and not involving staff can lead to technology being implemented without proper support or buy-in from them. E.g. if the sales force is not sold on the system's benefits, they may not input the kind of demographic data essential to success. Cultural change in the company, particularly among frontline staff. E.g. retail firm staff focused on managing accounts and contracts, not customers and the software is complex to use.

Problems with CRM : Time &Cost Objectives of CRM are incompatible with seeking a quick return Improving relationships involves repeated positive experiences-which take place over a long period of time. Projects are too large and take too long to implement. Customer information needs to be collected from many sources which takes time. Underestimation of costs - cultural change, redesigning business processes & technology.

Keys to successful CRM implementation Use a step-by-step approach. Break the CRM project down into manageable pieces by setting up pilot programmes and short-term milestones. Include a scalable architecture framework. Early and consistent sponsorship from senior management

Things to Do to Help Succeed. Analyse business needs- establish current position and assess competitors. Identify the customer needs and what you want to achieve through improved interaction. Determine how employees will use the information. Involve staff in the decision-making process and strategy formulation. Communicate the value of customer data. Determine the business case early- identify and prioritise issues and benefits. Articulate overall objectives and identify the measurements of success – ensure employees are working towards targets that reflect the business goals. Consider carefully what data is collected and stored.

CRM should be regarded primarily as a business strategy and not a software solution. The key principles that are common to this approach are –the alignment of the organisation around customers (rather than products or channels) – the sharing of information across all segments of the business leveraging data from disparate sources to better understand the customer and anticipate his or her needs with the objective of maximising customer profitability

And … Don’t forget the human touch. It’s ultimately up to the customer-facing employee to make the difference in each and every interaction – with the help of a well-thought out business strategy bolstered by the appropriate technology.

Have a nice day!!!