What is the Difference Between Contact Management and CRM?
Find out about the pros and potential cons of customer relationship management and how to implement it in your business. An example is the use of “CRM” (Customer Relationship Management) to describe all Contact Management systems, when in fact there is a. Contact management is not Customer Relationship Management. Here are the differences between contact management systems and CRM software.
This can be cost effective but it may mean that you have to compromise in terms of functionality.CRM Customer Relationship Management - Marketing Video Lecture by Prof Vijay Prakash Anand
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.
Customer relationship management
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. 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.
CRM (Customer Relationship Management) Call Center
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.
For example, Frito-Lay conducted many ethnographic interviews with customers to try and understand the relationships they wanted with the companies and the brands. They found that most customers were adults who used the product to feel more playful. They may have enjoyed the company's bright orange color, messiness and shape.
These days, companies store and receive huge amounts of data through emailsonline chat sessions, phone calls, and more. All of these are signs of what types of relationships the customer wants with the firm, and therefore companies may consider investing more time and effort in building out their relational intelligence.
Social media such as Facebook, Twitter, blogsetc. Understanding the customer and capturing this data allows companies to convert customer's signals into information and knowledge that the firm can use to understand a potential customer's desired relations with a brand. This helps convert data into profits for the firm. Stronger bonds contribute to building market share. By managing different portfolios for different segments of the customer base, the firm can achieve strategic goals.
For example, Harley Davidson sent its employees on the road with customers, who were motorcycle enthusiasts, to help solidify relationships. Other employees have also been trained in social psychology and the social sciences to help bolster strong customer relationships.
Customer service representatives must be educated to value customer relationships, and trained to understand existing customer profiles.
Even the finance and legal departments should understand how to manage and build relationships with customers. These systems codify the interactions between company and customers by using analytics and key performance indicators to give the users information on where to focus their marketing and customer service.
This allows agents to have access to a caller's history to provide personalized customer communication. The intention is to maximize average revenue per userdecrease churn rate and decrease idle and unproductive contact with the customers. The gamification of customer service environments includes providing elements found in games like rewards and bonus points to customer service representatives as a method of feedback for a job well done.
Automation prevents this by having pre-recorded audio messages that help customers solve their problems. For example, an automated contact center may be able to re-route a customer through a series of commands asking him or her to select a certain number in order to speak with a particular contact center agent who specializes in the field in which the customer has a question.
This also saves time on behalf of the employees. CRM must provide a holistic picture or degree view of the customer relationship based on activities from across the organization and across social channels. The most cited CRM components used to provide the big picture account view include marketing automation, sales force automation and customer support. More emphasis on data management and less prominence of informational reporting or business analytics.
Information visibility or analysis is minimal. There is typically little information roll-up, trending, key performance indicators, customer analysis, online analytical processing or true business intelligence BI. Customer data from across the organization is consolidated and packaged into meaningful reports, data warehouses or other analytical tools.
Data becomes information which becomes actionable by getting it to the right people at the right time. Sale opportunities automatically roll-up by territory, sales groups or other company structures. Sale pipelines and forecasts are automatically available in real-time without manual intervention or effort.
What is the Difference Between Contact Management and CRM?
Exception conditions can be detected early and understood by reviewing customer information from multiple perspectives and with easy to read graphical displays. Standalone systems which generally provide limited integration capabilities or data exchange with either desktop programs or legacy systems.
CRM applications are normally designed with importing, exporting and data integration in mind. Tools should be provided to allow non-technical users to perform imports and exports. Most information can be easily exported to a spreadsheet for manipulation or modeling or a word processor for a mail merge in a few keystrokes. Contacts, emails and calendar activities can be easily synchronized with groupware or e-mail programs. Although spreadsheet integration has a place, users often upgrade from contact management systems to CRM applications in order to automate the many activities previously manually performed in spreadsheets.
Generally limited to configuration settings and cosmetic adjustments. No real ability to construct or modify programming logic. Normally include sophisticated but relatively easy to use customization tools.
- The Differences Between CRM and Contact Management
- Customer-relationship management
These tools often fall within a Platform as a Service PaaS offering and permit development without source code changes to the CRM solution, thereby, facilitating continued upgrades and support.
Hosted contact management systems often do not support mobile devices or offline operation.