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Customer Relationship Management
Changing consumer attitudes are driving Customer Relationship
Management. Fuelled by Internet induced expectations and an even
increasing mood of self reliance among customers, companies have
to compete in an environment where communication, buying
processes, data management, delivery and service are
all-important in the battle for longterm, profitable
relationships.
Customers now require:
- Control over the buying process (information, comparison,
selection, easy to find, use and respond to)
- The best possible price (including delivery, and without
compromise to brand or product quality)
- The quickest, slickest delivery system (preferably free)
- All payment options (secure)
- Communications designed to suit the particular need
(computerised; complex; caring)
The above apply whatever the form of trading:
- Direct - Traditional - Retail - E-commerce - Wholesale -
Combination
These attitudes combined with the development of new technology
and the growing convergence of a number of 'new - new' and
'emerging - new' communications and distribution technologies
such as:
- 'Fixed link' telephony and telemarketing - Internet and VOIP -
Mobile telephony, SMS etc. - Digital TV, Cable, Satellite
is leading to an increasing focus on Customer Relationship
Management by all types of organisations, as they realise that
technological change allows them to re-organise the way that
they manage customer relationships and make them more profitable.
Organisations are searching for something far more holistic,
consistent and yet dynamic.
To achieve that and a sustainable competitive advantage in
Customer Relationship Management means working with the
management team, staff and suppliers of the company, where
reasonable and cost effective using technology (e.g. intranet,
extranet) to help to deliver the actions necessary to maximise
performance.
One must:
- Define profitable market sectors and customers - Understand
customers needs and expectations - Identify profitable product
and service propositions - Create effective, efficient,
adaptable, cost effective infrastructures
Customer Relationship Management is: the customer focussed
management of the whole relationship with each customer, in
order to measure, create and increase income and reduce costs
for each customer and
Associated Websites
customer segment and thus to generate
greater positive lifetime value across the portfolio.
Customer Relationship Management requires the organisation to
know the answers to questions such as:
- Which of my customers are profitable or unprofitable?
- Do I know their lifetime value?
- Which of my products and services are they buying and not
buying?
- Have I measured customers' purchase behaviour patterns, their
loyalty/retention/repeat purchase and multiple product purchases?
- What channel preferences do customers have?
- Who are my most profitable customers and what is their
ranking/grouping by risk, by product service grouping, by
profit, and by revenue?
- What strategies can I use to improve a customer's
profitability profile?
It also requires the organisation to deliver customer value.
Customers must feel that the organisation:
- 'Understands what I want' - 'Communicates with me' - 'Provides
me with added value' - 'Gives me reasons not to switch' -
'Treats me as an individual'
To achieve these answers Customer Relationship Management
requires focus on both sides of the equation:
- Customer Communications Management - Process Quality Management
and on three key delivery mechanisms, those of:
- Proposition - Processes - People
To be fully effective at Customer Relationship Management an
organisation has to position the business unit or enterprise
(proposition, processes and people) so that the customer is as
the centre of their business. True Customer Relationship
Management means that the business has streamlined customer
management through the integration of all customer 'touch
points', such as marketing, customer service and payment in such
a way that true customer satisfaction and loyalty appear to
occur effortlessly.
Customer Relationship Management is not a 'fad' it is a business
philosophy that helps to increase revenue, reduce costs and to
build and retain a loyal customer base.
About the author:
Richard Hill is a director of E-CRM Solutions and has spent many
years in seniordirect and interactive marketing roles. E-CRM
http://www.e-crm.co.uk helps you to grow by getting you more
customers that stay with you longer. We provide practical
solutions that pay for themselves. We help you to make sure that
your marketing works.
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