CRM Concepts

Basic elements of CRM are:  

• CRM as a competitive strategy – a strategic view.
• Customer satisfaction and loyalty.
• Relationship: selection and retention.
• Customer service and service marketing.
• Sales Force Automation (SFA).
• Implementation of CRM.

Key concepts of CRM are:

Comprehensive strategy: CRM at one end links itself to SCM – supply chain management and on the other hand the customer service and customer care. This makes a comprehensive strategy.

Acquiring: This is about prospecting. Using effective sales promotion methods, prospective buyer can be acquired. It is about developing new customer as well as converting competitor’s customers.

Selection: You can’t please all people at all times. You may not be able to serve and satisfy all the customers at the same time. There may be customers who may not be willing to have long time relationships with you. As a consequence you need to have selectivity in the customers as well.

Retaining: Once a right customer is selected, we need to provide the customer with a good product and a better service which exceeds the customer requirements. Only then can the customer be satisfied and retention of a customer can be possible.

Partnering: Partnership is about constantly striving to create better value for each other i.e. the buyer and the seller.

Interactive communication: A clearly planned and focused two way, interactive communication is a very essential ingredient of CRM. A meaningful communication will always be an Interactive Communication.

Technology + people: CRM is all about people and relating people to technology. This is all automation of people is all about!

Mutually beneficial long term relationship: It is all about the long-term relationship of the buyer and the seller. This overall results in the mutual benefit of both resulting in a long-term relationship.

Customer delight needs to be created instead only satisfying the customer. Customer service is about giving facilities and services that the customer asks for, or delivering service that is expected in today’s competitive world. Most products require additional or long-term support from the organization. These traditional services include delivery, installation, lessons-in-usage, instruction manuals, repairs and maintenance etc. Customer care (and also customer delight) is going beyond the ‘expectation check list’. Customer care is being proactive in developing relationship with your customer. Always remember “Good customers are worth keeping for life”. Great services can create a great experience and customer delight.