| A business can generate profit only when it has a | | | | light that nearly 65% of the customers...you are right |
| committed and faithful following of customers. In the | | | | the numbers are high...leave a business if they are not |
| cut throat environment of modern times, a Customer | | | | provided the kind of services they have become |
| Relationship Management (CRM) system then | | | | accustomed to. So here the CRM comes into play. |
| emerges as a valuable tool to help build customer | | | | The data base generated through CRM can be used |
| loyalty. CRM as the acronym suggests is all about | | | | in numerous ways: |
| managing the customer. If the customer is managed | | | | - Data that is generated through CRM can be shared |
| in an effective manner, the profit on a continuous | | | | across other units of the company and lessons so |
| basis is the logical by-product. | | | | drawn can help in increased profits in other business |
| It does not matter whether your business is small, or | | | | outlets as well. |
| you are running a large business, the longevity of | | | | - If the customer is a regular, as provided by your |
| your business hinges on the information you acquire | | | | data base, then you can offer him some privileges at |
| about your customer. Profits can be maximized first | | | | the time of billing for instance (discounts, credit |
| and foremost on a continued basis by having | | | | terms, payments plans, etc...), and make him feel |
| returning, satisfied, customers. It can be done only | | | | pampered as compared to other walk in customers. |
| through a personal touch. | | | | - When regular customers consistently order a given |
| Why is this important? It has been estimated that it | | | | product, it may be possible to be proactive about |
| costs more than 6 times as much to acquire a new | | | | your relationship and build an automatic order process |
| customer than to retain an existing customer | | | | whereby the customer does not have to initiate an |
| This personal touch can be ensured through | | | | order, but it is automatically sent when it is |
| maintaining a database on the needs and preferences | | | | determined that they need new supplies. This |
| of your customers. Building a relationship of trust and | | | | requires trust not only on the part of the customer, |
| understanding by knowing their needs and wants will | | | | but also on your own staff who must fulfill that |
| help you and your customer develop a long term | | | | order. |
| relationship, or more importantly, partnership. | | | | Ultimately, there are two separate, but related, goals |
| One way you can build confidence with you | | | | to a CRM solution: |
| customer is to give them first exposure to a new | | | | - Build a database of information that can be used to |
| product, before it is opened for the general | | | | generate increased profits for your organization |
| customer. As a matter of fact it has emerged as | | | | - Cut down the attrition rate of customers from your |
| one of the most valuable tools in the hands of | | | | business. |
| modern business outlets. Organizing personalized, | | | | CRM helps in building a long term relationship with the |
| pre-launch offers for committed customers, where | | | | client. This long term relationship is the foundation on |
| the personalized touch makes their whole experience | | | | which future profits can be built. |
| a pampered trip, builds a commitment within the | | | | CRM is like ready mixed concrete on the move, if |
| customer to not only your products but your | | | | stopped it can destroy the whole project; but the |
| business relationship as well. The customer, who has | | | | constant churning of the concrete, the constant |
| been pampered in this manner, turns out to be a | | | | moving forward will ensure a project that meets the |
| direct sales agent for your new campaign introducing | | | | needs of the customer. |
| this product, they in effect become part of your | | | | In the case of a business, the continual gathering of |
| marketing team. New customers, brought in through | | | | information, and acting upon it, will help us build a |
| this effort, become 'pre-qualified' through the efforts | | | | successful and profitable relationship with our |
| of you existing customers. | | | | customer. |
| It is through the advent of CRM that it has come to | | | | CRM is the catalyst that provides this churn. |