What is strategic customer relationship management

what is strategic customer relationship management

Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and. Otherwise, the very term “CRM” will conjure up many things to different people and lead to confusion. These companies see CRM as a series of strategies and. The use of customer relationship management (CRM) as a strategic approach has become increasingly popular in recent decades, and that.

Each and every member of this team should be experiences and dedicated professional as these members will be the key decision makers in the whole process. They will be responsible to communicate all the related details and benefits of the CRM strategies to all the members of the organization.

These members should be from following work groups to ensure all the aspects of strategies are addressed efficiently; Management- Management professionals are responsible to provide motivation, leadership and management at every strategic development step especially when a change in business process or organizational structure is expected. Technical- Automation of CRM strategies are important and must involve experienced technical hands.

Also technical professional provide their useful contribution in building and managing software application and determining their compatibility with existing software features. Sales and Marketing- These are final users of CRM system once the strategies are determined and implemented.

Customer Relationship Management - strategy, organization, system, model, company, business, system

The applied strategies are supposed to be successful once these users fell comfortable and satisfied by using all the CRM features. Being the end users these people are also responsible to provide useful feedbacks on efficiency and effectiveness while the strategies are in development phase. Financial- The CRM strategies must also be gone through or evaluated under financial aspects.

what is strategic customer relationship management

The financial professionals of the team can provide crucial analysis on assessment of enhanced productivity, evaluation of operational and production cost and final estimated cost of the project. Smart organizations are collecting information every time a customer comes into contact with the organization. Based on what they know about the individual customer, organizations can customize market offerings, services, programs, messages, and choice of media. Also, this database should be available to any organizational units that have contact with the customer.

what is strategic customer relationship management

CRM has also grown in scope. CRM initially referred to technological initiatives to make call centers less expensive and more efficient.

Strategic CRM - Mainitain Long Term Relationship with Customers

Now, a lot of organizations are looking at more macro organizational changes. Organizations are now asking how they can change their business processes to use the customer data that they have gathered. CRM is changing into a business process instead of just a technology process. Use of the term CRM is traced back to that period. In the mids CRM was originally sold as a guaranteed way to turn customer data into increased sales performance and higher profits by delivering new insights into customer behaviors and identifying hidden buying patterns buried in customer databases.

Instead, CRM was one of the biggest disappointments of the s. Some estimates have put CRM failure rates as high as 75 percent.

Strategic CRM - Mainitain Long Term Relationship with Customers

But more than a decade later, more firms in the United States and Europe are appearing willing to give CRM another try. A study by the Gartner Group, found 60 percent of midsize businesses intended to adopt or expand their CRM usage over the next two years.

Partially the renewed interest is due to a large number of CRM vendors that are offering more targeted solutions with a wider range of prices and more accountability. Even though CRM started in the mids, it has already gone through several overlapping stages.

what is strategic customer relationship management

Originally focused on automation of existing marketing processes, CRM has made a major leap forward to a customer-driven, business process management orientation. CRM initially meant applying automation to existing marketing activities and processes.

However, automating poorly performing activities or processes did little to improve the quality of the return on investment. In the second stage, organizations demanded more cross-functional integration to create a holistic view of their customers' relationships.

Also, the integrated system's goal was to provide a single-face to the customer by enabling employees to work from a common set of customer information gathered from demographics, Web hits, product inquiries, sales calls, etc. Cross-functional integration allowed the whole organization to take responsibility for customer satisfaction and allowed for better predictive models to improve cross-selling and improved products and delivery options.

what is strategic customer relationship management

The third stage of CRM was heavily influenced by the Internet. Customer self-service and Internet-based systems became the next big thing in CRM.

what is strategic customer relationship management

However, there were obstacles caused by a lack of seamless integration into the organization's operational systems and a lack of integration across customer touch points such as call centers, web transactions, and other various interactions.

By rethinking the quality and effectiveness of customer-related processes, many organizations began to eliminate unnecessary activities, improve out-dated processes, and redesign systems that had failed to deliver the desired outcomes.

In this stage, the big CRM vendors used new Internet-based systems to extend the reach of CRM to thousands of employees, distribution partners, and even the customers themselves.

Martha Rogers: Customer Relationship Management (CRM) Strategy Expert and Keynote Speaker

The next stage of CRM will be when systems are designed based on what matters most to the customer and customers will have direct access to all of the information they need in order to do business with an organization.