During this century, with the advancement of technology, information science makes more powerful tools available to companies to carry out their operations. We are going to feed back some topics to certain nascent methodologies in the marketing field that facilitate the operation of organizations.
CRM are no longer unknown acronyms and the popularity of them in the business world is increasing, there is a lot of information that refers to CRM (Customer Relationship Management), which treats the subject as something innovative; In truth, I think it is the oldest topic in the field of marketing: "the personal relationship between a company and its customers." While it is true that with the arrival of economies of scale and the development of the Industrial Revolution in the last 3 centuries of our history, markets have become increasingly larger, the relationships between large companies and their customers have become It has been cooling and distancing in time, turning corporations into "Giant Cold Heartless Monsters" who only think of making profits anyway.
This concept does not work alone, but is part of the theory of relationship marketing, so we will see and understand where in the process the concept of CRM falls.
The industrialization of processes and the systematization of tasks have turned large companies into giants with efficient processes and low operating costs, but they have distanced themselves in personal relationships with their clients; It is the reason why there are still old small businesses that were known for their proximity to the customer not only on a commercial level but on a personal level.
"The little shop on the corner" or "Doña Magos", have been the typical small businesses that have always existed and have always kept their small clientele. How have they done it? How have they survived from being devoured by monsters like the Transnational stores or Hypermarkets (needless to say, I don't want to advertise more good or bad than they already have) that have better prices and products? The answer is simple: They have managed to build close personal relationships with their customers. These micro entrepreneurs know the names of their clients, they know their customs and even their problems, their aspirations, their ideals. Over the years they have built strong relationships with their clients and this has allowed them to survive in the world.
The growth of large corporations and the development of the economy have made large companies grow, but today they have a common problem: with globalization and the opening of markets, competition between these giants has become truly fierce.
So much so that of the large multinationals of the 80s Today there is almost nothing left; almost all have undergone drastic changes, mergers, bankruptcies, acquisitions by others, downsizing, resizing, alliances, in short, all in order to survive in the economic world. Every day, the environment is more unstable and the only security that a company lasts over time is that its customers are loyal to its products.
Marketing research has concluded that the best way to keep your customers loyal is to get to know them as the corner vendor or baker knows them, taking information from them and asking them: What do you want from us as companies? Since the arrival of the world of computing with its speed of data processing, computer systems dedicated to collecting customer information in large databases have proliferated, the question is, what to do with all that data? Everyone knows that they are important, but how to use them?
The solution arises from a theoretical concept called relational marketing which refers to marketing focused on customer relationships. This theory together with computer tools are the basis of the emergence of new marketing techniques where the most popular is CRM, which is the joint application of relational marketing theories along with computer tools that facilitate their application.
CRM and tools for managing customer relationships
All the structuring that the company has had by focusing entirely on satisfying the needs and expectations of consumers or users, by customerizing the organization, would lose their impact if the strategist does not simultaneously configure projects that allow him to carry out an optimal management of customer relationships, seeking customer loyalty.
Additionally, management must have become aware of the need and importance of maintaining a stable and long-lasting relationship with customers, which is potentiated by personalizing and individualizing relationships, which will be programmed thanks to the accessibility of new technologies and the framework of new marketing concepts.
From the point of view of conceptual references, "one-to-one marketing" is the fundamental pillar on which a series of derived concepts are built, such as:
- Relational Marketing. Database Marketing. Integrated Direct Marketing. CRM (Customer Relationship Management). E-commerce (Internet commerce with personalized attention).
Marketing 1 to 1
It originates and is understood from the existing relationship between the company and its customers, based on the knowledge of the consumption habits, purchasing habits and communication habits of the consumers or users, whom they want to retain, achieving from Repurchase and return actions, until they become a permanent source of information on all events that affect the business relationship and the management of the company itself.
To this end, all possible communication mechanisms are used to establish interactive relationships that examine the suggestions and recommendations of clients, always seeking to achieve quality standards in accordance with market expectations, under criteria of continuous improvement.
The central objective of "one-to-one marketing" strategies will always be linked to establishing long-term and lasting relationships with clients, generating incentives that go beyond strictly promotional actions, based on the generation of incentives located in the orbit of the personal and the familiar to create affective bonds with the organization.
These measures must be dynamic and subject to permanent revision and updating, since if they are not renewed they tend to lose their attractiveness over time and may lead to the client considering alternatives presented by the competition. In this sense, customers should be prevented from discovering other options present in the market, since trying to win back their interest can mean a significant additional effort for the organization.
"One-to-one marketing" implies an abundant knowledge of the characteristics and behaviors of consumers or users, based on quantitative and qualitative research, while demanding a clear differentiation and prioritization of customers, achieved in the processes of micro segmentation.
Relational marketing
Relational marketing initiates one-to-one operationalization and, as its name suggests, it seeks to create, strengthen and preserve the company's short, medium and long-term relationships with its buyers, in order to empower them in achieving greater number and possible quality of transactions, using marketing, communications and public relations tools.
The strategy defines programs that, in the first instance, recognize and reward the best customers with the best performances, that is, those whose purchase volumes, frequency of purchase, amount of investment, commercial morality and length of relationship, They become more valuable to the organization and those who normally generate the highest volumes of income available to the company.
In any case, prioritizing measures towards "VIP clients" (Very Important People, believe it or not, there are still people who do not know what each letter means!) Does not mean excluding those who do not have these characteristics. On the contrary, a design is sought that encourages them to improve their relationships and communications with the organization and increase their turnover, from the creation of a closer relationship and from the generation of added values.
Internal customers at all levels also participate in this dynamic and suppliers can get involved, along with companies that establish themselves as strategic allies.
Relational Marketing Plan
With relationship marketing, as with any program that requires planning, a series of stages must be followed that will contribute to its success, such as:
Step 1: Diagnostic assessment.
Step 2: Consolidation of the database.
Step 3: Micro segmentation of the database.
Step 4: Market research.
Step 5: Determination of the plan's objectives.
Step 6: Accuracy of the plan format.
Step 7: Internal dissemination and qualification of the internal client.
Step 8: External broadcast.
Step 9: Implementation and start-up of the plan.
Step 10: Measurement of results and adjustment of the plan.
Database Marketing
Recognizing that it is a topic that has been mentioned repeatedly, it is also valid to understand that no marketing, sales or customer service strategy would work properly without having an updated database.
By addressing their analysis in a particular way, they want to highlight the benefits of its structure, remembering that the identification of different types of customers is essential when programming and carrying out business intelligence tasks, as well as the adoption of conquest strategies and the evaluation of the impacts achieved.
Database marketing corresponds to the management of a system that integrates relevant information about all types of customers, using statistical analysis and subjective interpretations, to analyze and project marketing strategies that stimulate purchasing actions and loyalty processes. organizations are so concerned about.
By monitoring the relationships established with each of the
clients and confronting historical behaviors, both individual and collective, appropriate measures can be taken to reduce dropout rates, which in one way or another would not be controllable if timely information on the current status of customers is lacking.
With this, the first classification of the databases has already been generated by distinguishing the customers that maintain their validity in relations with the company, from those who have not continued the trade agreement or who have dramatically decreased their volumes and purchase frequencies..
Of course, this task will be facilitated with the incorporation of technology that is available to entrepreneurs and that will handle permanent information on the specific purchasing actions that each client carries out, as well as generating information showers and consolidated tables on the representative behaviors of individual, group to group and general cut, in those periods of time that are of interest to the strategist.
When organizations undertake this type of marketing, the safest thing is that they already have the capacity to design and provide personalized goods and / or services, develop micro-marketing programs, just as they will have anticipated the availability of an interactive communication network and even They will have structured relationship marketing programs.
Direct marketing
Direct marketing collects the essence of interactivity between the company and customers, given that it is implemented in telemarketing, direct mail and the use of the Internet, communicating messages of diffusion and persuasion that should lead to a measurable and verifiable response from the of target customers.
Direct marketing has gained significant space as a strategic component in marketing, thanks to the evolution of technology in telecommunications and information technology, as well as has been favored by the permanent accessibility to software and hardware that are now exclusively designed for this type of instruments.
This process will begin with the integration between telemarketing activities and direct mailings, to achieve some impact, creating the basis for later incorporating the use of the Internet.
In Telemarketing, you can go in the first instance to the receptive or inbound nature, generated by customers and, secondly, to outbound, which is part of the company's initiative, this must be very dynamic and creative on both sides since The client who calls us must be treated in the same way as we make the call, although with some basic differences taking into account their profile.
In each case, efforts will be made to facilitate communication between the company and its clients, clients with the company, the company with other companies, the company with its suppliers, and even the company's clients with each other.
However, if you want to achieve a good impact, you must reinforce the communication strategy using direct mail, either conventional, by fax or by e-mail, respecting a series of minimum design requirements, such as:
- Creative design.
Permanent use of letterhead.
Document signed by management levels.
Presentation of an official to contact.
Nominal letter for each client.
Communication of a single message per shipment.
Sending copies to every manager in an organization.
Text readability, obviously taking care of spelling and grammar.
Retention of proof of delivery.
Analysis of the reasons for return of correspondence, in short, several more.
Being usual the type of communications that seeks to create expectations about some event or activity of the company and stimulate a response from customers.
As previously indicated, this entire set of measures will be reinforced by resorting to the use of the Internet, taking advantage of its interactive dynamics, its activity in real time twenty-four hours a day and its personalized and confidential nature.
In order to potentiate this tool, it is necessary to design a site (Website), which serves as a contact and reference point for all the information that is wanted and can be shared with clients, either from free and spontaneous access or by creating an extranet with restricted access.
In this type of sites designed by companies, not only must the corporate and commercial information that interests the organization be accommodated, but also themes and links that may be striking for customers, as individuals, members, must be incorporated. of a family or members of a society, in such a way that continuous access to the institutional page is encouraged.
The Internet also provides other tools for interactive communication with customers, such as Chat, audio Chat and video Chat with the possibility of creating groups and communities that interact on topics suggested by the company or by customers.
In all this scenario, it must be clear to the strategist that the Internet is used as an instrument articulated to a group of previously designed strategies, as opposed to a trend of another nature, which leads to the creation of virtual companies and portals on the Internet.
CRM Customer Relationship Management
What is CRM?
In this cyclone of new acronyms related to technology and business: AMFE, BSC, QFD, TBC, TDG, in short, for some time another has appeared: CRM. The logical question: "Is it another" fad "or is it really an interesting concept?"
CRM is basically the technology response to the growing need of companies to strengthen relationships with their clients.
Customer Relationship Management CRM tools are the technological solutions to develop the "theory" of relationship marketing. Relational marketing can be defined as "the business strategy focused on anticipating, knowing and satisfying the present and foreseeable needs and desires of customers".
Currently, a large number of companies are developing this type of initiative. According to a study carried out by Cap Gemini Ernst & Young in March 2005, 73% of European companies have launched a customer management initiative (CRM).
In the process of reshaping companies to adapt to customer needs, it is when the need to rethink the "traditional" concepts of marketing and use the concepts of
relationship marketing is detected:
1. Focus on the client: "the client is king". This is the concept on which the rest of the "philosophy" of relationship marketing revolves. It is no longer in an economy where the center was the product to move to a customer-centric economy.
2. Customer intelligence: You need to have knowledge about the customer to be able to develop products and / or services focused on your expectations. Data, rules and standards are used to convert data into knowledge.
3. Interactivity: The communication process goes from a monologue (from the company to the client) to a dialogue (between the company and the client). Furthermore, it is the client who directs the dialogue and decides when it begins and when it ends.
4. Customer loyalty: It is much better and more profitable (on the order of six times less) to build customer loyalty than to acquire new customers. Customer loyalty becomes very important and therefore the management of the customer life cycle.
5. The axis of communication is direct marketing focused on individual clients instead of "mass" media (television, press, radio, internet and "word of mouth", the latter is sometimes stronger than the others). It goes on to develop profile-based campaigns with products, offers and messages aimed specifically at certain types of customers, instead of using mass media with undifferentiated messages.
6. Personalization: Every client wants personalized communications and offers, which requires great efforts in intelligence and client segmentation. The personalization of the message, in depth and in form, dramatically increases the effectiveness of communication actions.
7. Think of customers as an asset whose profitability is often in the medium and long term and not always in short-term income. The client becomes a reference to develop marketing strategies aimed at capturing their value over time.
Really, relationship marketing is something that has been done for centuries. If not, think of the grocer on the corner. When you go shopping, he always recognizes you, greets you by name and advises you (makes personalized offers) based on his latest inquiries and purchases, makes you "cross-sell" and also tells you the new tips for the week… or not?
The current challenge is to get to know the customers and act accordingly when instead of having 50 customers as the storekeeper has, there are 1,000, 5,000, 50,000 or more. This possibility is offered by technology. Until CRM solutions and databases existed, it was unfeasible to meet and customize messages to 50,000 customers.
The objectives of relationship marketing and CRM solutions are:
- Increase sales both by increasing sales to current customers and by cross-selling. Maximizing customer information. Identifying new business opportunities. Improving customer service. Optimized and personalized processes. Improving offers and reducing costs. Identifying customers Potentials that generate the greatest benefit for the company. Loyalty to the customer, increasing customer retention rates. Increase the share of customer spending.
In this context, it is important to highlight that the Internet, without a doubt, has been the technology that has had the most impact on relationship marketing and CRM solutions. Next, the contribution of the Internet to relationship marketing is developed:
- Significant decrease in interaction costs.Bidirectionality of communication.Higher effectiveness and efficiency of communication actions.Customer intelligence.Very segmented audiences.Personalization and Marketing 1 to 1.Ability to communicate with any site from anywhere.Improvement of customer service. Operation 24 hours, 365 days. Improvement of business processes.
However, although technology is the tool for the development of philosophy, a CRM project can never be left in its hands. It is very important to highlight that to achieve success in this type of project, the four basic pillars of a company must be taken into account:
1. Strategy: Obviously, the implementation of CRM tools must be aligned with the corporate strategy and be consistent with its tactical and operational needs. The correct process is that CRM is the answer to the requirements of the strategy regarding customer relations and not that it is forcefully implemented without being too consistent with it.
2. People: The implementation of technology is not enough. In the end, the results will come with the correct use that people make of it. The change in the culture of the organization must be managed seeking the total focus on the client by all its members. In this field, technology is totally secondary and elements such as culture, training and internal communication are the key tools.
3. Processes: It is necessary to redefine the processes to optimize customer relationships, achieving more efficient and effective processes. In the end, any implementation of technology results in business processes, making them more profitable and flexible.
4. Technology: It is also important to highlight that there are CRM solutions available to organizations of all sizes and sectors, although clearly the necessary solution in each case will be different depending on their needs and resources.
In summary, before entering a CRM project it is important to be clear about the business objectives you want to achieve. After that clear definition, it is time to tackle technological solutions. In addition, a prior analysis of the investment and a follow-up of its results must be done.
Customer Relationship Management or customer relationship management, is a name taken from the computer industry, about a conception that is based on the same principles that "one-to-one marketing" has proposed, in the sense of counting as a basis for Its implementation with an organization whose management areas are structured according to consumers or users, based on methodologies and programs related to the use of computer technology and the Internet, designing CRM solutions, which recognize the interaction between internal customers and external clients to generate a positive perception of the organization.
The CRM is based on applications that systematize the processes associated with the management of customer information, relying on computer planning tools, decision support systems, administration of the sales force and database management, among other.
Like all events associated with customer retention and loyalty, CRM has a long-term vision, based on marketing, sales and customer service strategies, which lead to the creation of a service culture throughout the organization., arriving to adopt process reengineering schemes that are necessary for this purpose.
Perhaps the central element that differentiates CRM from other conceptions, is related to its notorious support in solutions of technological and computer origin that involve the entire organization, automating all those processes that can be programmed and regularized with this criterion, of course following the guidelines set by business policy and seeking compliance with economic objectives of a corporate nature.
Given that the CRM involves systematizing a wide range of processes, it will be necessary to have sufficient clarity on which ones will be selected, making an evaluation to verify if they have already been validated and are properly documented, consistent with institutional guidelines and the objective of improve the different stages of the commercial team's work, prioritizing the impact that is achieved in the market over the technological impact that may be involved.
On the other hand, it will be necessary to make use of an "intelligent technology", made up of modularized programs that can be easily integrated into existing databases, seeking compatibility with networked systems in those cases where they may occur.
Another criterion that is important to consider is associated with the participation of external clients, to the extent that their level of involvement will give greater certainty when structuring strategies that seek to satisfy their needs and expectations.
In this development, the active intervention of internal clients, which now acquire the connotation of system users, becomes particularly important when validating the procedures that involve them, providing them with adequate training and capacity to facilitate the operation of automated processes, since these schemes can mean changes in work habits.
Of course, the training activities must be accompanied by actions that stimulate and motivate the work team in the adoption of the CRM system, based on internal marketing efforts and the permanent use of interactive means of communication with all the officials of the organization.
E-commerce
Electronic commerce or e-commerce basically consists of the development of marketing, sales, customer service, information, portfolio management, logistics management and, in general, all commercial events and information exchange carried out by means of Internet.
This tool originates from the new information technologies, from the establishment of interactive links between companies, consumers and all the agents that intervene in the marketing dynamics, forcing organizations to change their conception and gain a globalizing vision, in which geographic barriers and time management are factors that favor all commercial action.
E-commerce is also used in organizational restructuring processes, by automating the relationships between the different departments or divisions of the company and is applicable in direct marketing, relationship marketing and database marketing strategies.
Given the nature of the subject that can be handled on the Internet, electronic data transfer (EDI) has been created, with which it is possible to carry out complex transactions associated with legal, accounting, financial issues, in short, as well as the management of highly confidential information and the record of the electronic activities of the data and documents transferred from computer to computer, in a very secure way.
Electronic commerce, whose evolution is permanent, has enabled the management of customer relationships, among other reasons, for the following:
- It facilitates permanent and interactive communication, every day of the year, within a world-wide geographic coverage. It allows to establish commercial agreements in a simple way. It makes it possible to set up and permanently update databases for all types of clients. It streamlines the capacity response of the company to product, goods or service requirements, by consumers or users interested in them. It provides new communication and interaction mechanisms within the framework of customer service strategies and loyalty campaigns structured by the Organization. It allows to personalize and individualize all company-client relationships. It reduces the costs of commercial management and sales processes, enhancing the performance of the company's work teams.
Website
Once the magnitude and importance of e-commerce is sufficiently understood as an instrument that not only facilitates commercial transactions but also helps to improve customer relations, the assembly of the elements required to potentiate the strategy begins.
The first step to follow is the creation of a website or website, which is structured as a complementary tool for all marketing action, which differs from the concepts of virtual company or portal, since the designed website is based in the already established organization and even emerges as a culminating part of the company's orientation towards the client.
Today, progress has been made in the creation of very creative and dynamic tools that make pages striking, with the integration of formats that link texts, sounds and images, under a multimedia criterion, attracting the attention of people who access them from engines of search available in the network and data to know by the company itself.
This site must be coherent with the corporate image that one has or that one wants to project, presenting both internal and external clients with answers to the inquiries that they make, based on intranet and extranet schemes, respectively.
Of course, access to the Web page will be conditioned and restricted with the use of a password or access codes, as necessary, to avoid leaking information that is confidential among them.
On the other hand, the dimensioning of the data placed on the page will be conditioned to the minimum presentation required by the clients and organizations that access it, for which reason the website must be potentiated from the inclusion of links or links that extend and complement the topics, leading to other sites of interest, quickly and "friendly", that is, easily executed.
In fact, one of the strategies that is being applied to attract the attention of customers is to facilitate the location of content of interest to them, transcending the institutional and marketing information presented by the company and located on topics that concern physical well-being. and mental of people, their families and communities in general.
System tools
Simultaneously, the strategist will make available to customers email addresses or e-mails that facilitate personalized communication of concerns, recommendations and suggestions, channeling comments to people or positions that have sufficient incidence to meet the relevant requirements, as well as to follow up if the case requires it.
Another tool that has been gaining space from the Internet corresponds to Chat, audio Chat and video Chat, which allow communication in real time and simultaneously, with groups of clients called to address various issues, emphasizing training, orientation, advice and technical assistance regarding the products, processes and procedures that are followed, within the framework of customer service actions and loyalty campaigns.
With the integration of Chat and mail, segmented groups can be configured under different homogenizing criteria, to constitute clearly differentiated databases and form integrated communities around themes of common interest, linking the company with its customers.
Once the use of the tools presented so far has been consolidated, the organization will have gained sufficient knowledge and experience to venture into the assembly of virtual stores or structured e-shops based on the productive activity that it carries out and knowledge of the needs and expectations of Internet users, applying the instruments required to guarantee the reliability and security of all electronic transactions that arise.
All the set of elements that are available on the Internet and that facilitate the work of electronic commerce, have been gaining an increasingly important space for companies concerned with generating competitive advantages and gaining increasingly loyal customers, which is why in a step that has to be carried out in a planned way, if you want to gain a better strategic position in the market.
Bibliography
Ramírez L., Martha. New Business Strategies. Ed. Universe. Mexico.
Abbot, Raúl. Relational Marketing, Relational Future. Ed. Espasa-Calpe, Spain.
Navarro, Eduardo - What is CRM ?, Ed. Limusa, Spain.
