According to Gartner, customer relationship management is a business strategy with an outcome that will optimize profitability, revenue, and customer satisfaction centered around customer segments that fostering customer satisfying behaviors and implement customer-centric processes.
CRM refers to practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. The goal is to improve business relationships with customers and assist in customer retention and driving sales growth.
There are 8 building blocks of CRM, according to research done by Gartner, that will optimize the chances of successful business results for enterprises that adopt the entire model or modify it to fit specific organization needs.
All executive, management, and front-line employees must be on the same page when discussing the CRM vision for any organization. They must agree on the following aspects:
- The definition and scope of CRM for the organization
- The customers with whom they want to have a relationship
- The value proposition the company is offering
- Why the organization is compelled to invest in CRM
- The importance and benefits of CRM to the overall corporate strategy
- The nature of the customer experience to be delivered
CRM must be publicized and accepted throughout the enterprise and the customer base.
Your CRM strategy cannot stand alone. It must fit in with the overall business strategy, which outlines how stakeholder value is to be delivered. The CRM strategy is created by:
- Identifying the key employees (internal and external) on the initiative and who will be responsible for executing the strategy
- Auditing the business’s current position about customer value, loyalty, and satisfaction
- Segmenting customers for better targeting
- Setting customer objectives, including acquisition, retention, and development
- Defining metrics for monitoring the execution of the strategy; for example, satisfaction, loyalty, and cost to serve
- Outlining the strategy for customization by product segment, pricing, communication, channel, customer service and segment management
- Specifying the resources required (including skills, organization, IT, analysis, and data) to give direction to the other operational strategies
CRM is considered an effective way to reap customer benefits by analyzing them. However, the tools designed by and for CRM usually tend to focus more on internal operations of an organization. This may not give the desired results. Paying attention to the customer’s viewpoint also becomes extremely important. Customers must be told about organizational development. A routine monitoring through surveys can help to keep critical leaders in the company up to date on the pulse of the customer.
Looking for ways to better manage and grow your company is a smart strategy and a solid customer relationship management system can be the difference in creating solid relationships with customers.
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