CRM (Customer Relationship Management), in its literal translation, is understood as the Management of Relationship with Consumers, but it is as generic as any phrase in English translated into Spanish. But for your better understanding it basically refers to a customer-centric business strategy.
According to Don Alfredo De Goyeneche, in his publication in the magazine Economía y Administración of the University of Chile, he refers to the fact that in “CRM we are facing a business model whose strategy is designed to identify and manage the relationships in those accounts that are the most valuable for a company, working differently in each one of them in such a way as to be able to improve the effectiveness on customers ”. In short, be more effective when interacting with customers.
Under this concept, it would be good to go deeper, since these three words include much more. The CRM as defined by Barton Goldenberg, consists of 10 components:
- Sales functionality and its administration Telemarketing Time management Customer service and support Marketing Information management for executives Integration of ERP (Enterprise Resource Planning) Excellent data synchronization e-Commerce Service in the field of sales.
However, the word loyalty practically synthesizes its meaning, since CRM is dedicated to acquiring and maintaining customer loyalty, specifically of those most valuable accounts.
"You'll get more out of your customers' wallets when you take the time to be on the lookout for them"; as conceptualized by Janice Anderson, vice president of CRM Solutions at Lucent Technologies.
The benefits of CRM are not only embodied in customer retention and loyalty, but also in having more effective marketing, creating smart cross-selling opportunities and opening the possibility for a rapid introduction of new products or brands.
Ultimately, what companies want is to reduce the cost of obtaining new customers and increase the loyalty of those who have already approached. The latter become one of the most valuable assets of the company.
But, through which channels? Which are the most viable to communicate with our clients?
Direct mail is the most used traditional means to establish communication between the company and its customers. Call Centers (or call centers) are one of the media that have grown in the last 10 years and their effectiveness has been reflected in the satisfaction of each of their customers.
Other means of attracting customers and communicating with them are e-mail and the Internet, which will be analyzed later in chapter four.
In the process of implementing a CRM system, not only the technological part should be involved, but the entire company must live the adventure of adopting CRM.
How to do it? Barton Goldenberg with his 14 damage experience in this area sums it up in 10 success factors:
- Determine the functions you want to automate Automate only what needs to be automated Get support and commitment from higher levels of the company Use technology intelligently Involve users in building the system Prototype the system Train users Motivate staff who will use it Manage the system from within Maintain an administrative committee of the system for doubts or suggestions
With the implementation of the CRM system, the company should be able to anticipate the client's wishes. The system should be a means of obtaining information without reaching the degree of harassing the customer.
The response speed must be high, since the user will not wait forever, in addition to offering several options so that he can establish contact with the company. A "one stop call" and 24-hour service would be ideal for the user.
Finally, the true meaning of CRM for the company is: increase sales, increase profits, increase margins, increase customer satisfaction and reduce sales and marketing costs.
What is the future of this popular market trend?
If CRM (Customer Relationship Management) means the industry of software companies that promises to implement solutions that will solve myriad problems, increase profits and reduce costs in an almost magical way, CRM has a short life in store. On the contrary, if CRM is considered from a broader point of view, -as a tool to listen to the customer, learn to understand it, and adapt products and services to their particular needs-, then the application will become more and more valuable, surviving long term.
While the concept that brought CRM to life is as old as the businesses themselves, in the past fifty years, as companies began to grow into global corporations and serve millions of customers, its importance was relegated to the background, which brought up that customer service became impersonal, anonymous and that its quality was standardized.
On the ability of each company to put into practice the fundamentals on which CRM is based - treat customers appropriately, recognize their individuality and satisfy their particular needs - depends not only the future of this tool, but also that of the very company that will increasingly need to provide excellent customer service to be in a position to compete in the marketplace.
How to take advantage of electronic communication?
The Web, email and other electronic channels (such as Call Centers) put information, previously difficult to obtain, at the customer's fingertips, which made it better informed and, consequently, it has become more critical and powerful.
The aforementioned communication channels also made it easier for them to get in touch with companies, which now need to respond efficiently to this demand for attention.
To respond to the needs of their customers effectively, companies will use CRM to gather and analyze information about them, and subsequently distinguish their preferences.
They will then use the resulting product for the benefit of both parties, leading to unique relationships with them. This process not only requires the implementation of the new technology, but, fundamentally, a change in the way of relating to the customer: it is necessary to speak less and listen more, and modify processes, for example, testing marketing offers and defining them accordingly. according to customer needs.
CRM gives the company the valuable opportunity to get to know the customer and, therefore, learn to serve them. It should not be wasted.
