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Customer Relationship Management : Nature and Scope

By: Yogin Vora on March 14, 2009 10 Comments


The Customer is King! This credo is more powerful, relevant and true today than ever before. In a truly customer driven economy, success depends on a company’s ability to be with the customer on a round the clock basis… satisfying all their product and service specific needs. Simply stated, Customer Relationship Management (CRM) is about finding, getting, and retaining customers.

Yogin VoraCustomer Relationship Management is one of the hottest and most talked about topics in the industry today and for good reason. CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. Simply stated, Customer Relationship Management(CRM) is about finding, getting, and retaining customers. CRM is at the core of any customer- focused business strategy and includes the people, processes, and technology questions associated with marketing, sales, and service. In today’s hyper-competitive world, organizations looking to implement successful CRM strategies need to focus on a common view of the customer using integrated information systems and contact center implementations that allow the customer to communicate via any desired communication channel.

CRM is all about building long term business relationships with your customers. It is best described as the blending of internal business processes: Sales, Marketing and Customer support with technology. CRM is to meet and exceed customer expectations, create a positive customer experience and build customer loyalty. Solutions empower businesses to more efficiently and effectively manage the activities that affect their relationship with their customers. The ultimate goal of

CRM changes all of this and represents a continuing evolution in managing front office operations. With CRM, traditional departmental applications for sales, marketing and customer service are consolidated into a single unified system capable of managing the entire customer life cycle. This approach allows employees throughout an organization to have immediate access to a complete profile of important customer information. Organizations who are implementing CRM solutions feel confident that providing access to this level of information will assist their sales and support staff in better understanding the needs and buying patterns of their customers.

What exactly is the definition of Customer Relationship Management? Ask a dozen professionals, get a dozen different definitions. Here’s a general overview:

¨ CRM is used to learn more about your key customer’s needs in order to develop a stronger relationship with them.

¨ Customer Relationship Management can be defined as company’s activities related to increasing the customer base by acquiring new customers and meeting the needs of the existing customers. CRM is about building partnerships with your customers. It uses internal business processes from Sales, Customer Service and Marketing.

¨ The philosophy of CRM is the recognition that your long-term relationships with your customers can be one of the most important assets of an organization, providing competitive advantage and improved profitability

¨ The most important part of CRM is the “customer-focus“.

According to one industry view, CRM consists of:

¨ Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns with clear goals and objectives, and generate quality leads for the sales team.

¨ Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices)

¨ Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service.

¨ Providing employees with the information and processes necessary to know their customers, understand their needs, and effectively build relationships between the company, its customer base, and distribution partners.

CRM uses technology, strategic planning and personal marketing techniques to build a relationship that increases profit margins and productivity. It uses a business strategy that puts the customer at the core of a companies processes and practices. It requires this customer focused business philosophy to support effective sales, marketing, and customer service and order fulfillment.

Regardless of company size or industry, businesses have begun to recognize the value and importance of customer retention and are embracing new technology for automating customer service and support. For the new millennium, it seems that the customer has finally become King!!!

Customers can be divided into three zones:

  1. Zone of defection where customers are extremely hostile and have the lowest level of satisfaction.
  2. Zone of indifference where customers are not sure. They have a medium level of satisfaction and loyalty towards the company.
  3. The third level of customers is in the zone of affection described as “Apostles”. CRM focuses on bringing customers from level 1 to level 3 and retaining apostle customers.

Customer demands for customization is increasing with every passing day. This has made companies shift their focus from “mass production” to “mass customization”. The present scenario of companies using “poorly implemented” multi channel strategies for living upto the expectations of customers is bringing both customer satisfaction and customer loyalty down the ladder.

Today any company can copy products or services offered by other companies. If the new entrant adds features like less order turn around time and direct communication then established players are bound to have sleepless nights. Organizations that implement CRM and turn their business into e-businesses will find their competitors’ customers ready to welcome them with a “smile“.

The top four reasons for implementing CRM are:

¨ Gaining customer confidence and loyalty

¨ Providing personalized service to customers

¨ Acquiring better knowledge of customers and their buying habits

¨ Differentiating themselves from the competition


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10 Responses to “Customer Relationship Management : Nature and Scope”

  1. Brooklyn Evans on: 4 July 2010 at 5:08 pm

    Telesales is actually good for promoting your affiliate products both online and offline situations.

  2. Matilda Mitchell on: 2 August 2010 at 4:50 am

    i was in the telesales business a few years ago but now i do internet marketing”

  3. varimala on: 31 August 2010 at 7:10 am

    project is good ,,,,,,,,,,,,,,
    send me the total project report to varimala@rediffmail.com

  4. Adrian Morgan on: 29 September 2010 at 7:04 am

    i have been in a telesales business over the last few years and it helped me earn more money.

  5. Yogin Vora on: 29 September 2010 at 4:50 pm

    Thank you for sharing experience with us Adrian

  6. Customer Relationship Management on: 4 November 2010 at 5:23 am

    This can be a challenging task in itself unless you can rely on sample flowcharts to articulate the process in an understandable format. Getting subject matter experts to redefine their business processes is difficult unless you are able to help the entire department or business unit breakdown their complex processes to identify gaps or redundancies that currently exist.

  7. ramesh on: 20 June 2011 at 7:46 am

    very nice work thanks to you.. i need mini project customer relationship management………..give some idea…..

  8. arshad on: 15 April 2012 at 12:06 pm

    it given informations are very nice you help every one special mba students

  9. Lucky on: 11 June 2012 at 5:37 pm

    Thank you very much. I have an experience of 2.4 years as a CRM in Antares Systems Limited and I want to change the organization. Can you please tell me the options?

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