CRM stands for customer relationship management. It is a technology based on which an organization can manage its relationships and interactions with customers and also potential customers.
The CRM strategies are targeted towards one goal of achieving business relationships. When you improve your relationships, you can near the goal of delivering maximum customer satisfaction to the people.
When we talk about CRM, it means a CRM system including tools that help with ixact contact management, sales management, productivity, among other things. Let us see five ways using which you can use CRM to build a loyal customer base.
Target your customer base and develop Customer Strategy:
The very first step in developing a loyal customer base is to target your customers. If you wish to enforce CRM without identifying a customer strategy, it will not effectuate into anything fruitful.
For instance, you want to sell Android phone covers, but you have zeroed in on persons who do not even own Android phones. Definitely, you will not make any sales and the chances of hitting the target will be naturally foiled.
So, the primary step in launching a successful CRM initiative is targeting the right customers. Only then you can consider developing the process as well as the infrastructure to formulate a strategy.
CRM is a supported technology and to be used as directed and only after you know what has to be supported. Use your CRM to surprise your customers with services that they last anticipate and you will be well on the track leading to enjoying the loyalty of your customers.
Align your internal Organization structure and Processes:
Do not think that once you have aligned your business with CRM technology your customer base will improve automatically. You need to align your business, practice, and culture with the new CRM strategy that will transform your organization into a customer-focused one.
CRM consultants Rigby, Reichheld and Schefter of Bain & Company have excellently put the drill:
“A CRM rollout will succeed only after the organization and its processes — job descriptions, performance measures, compensation systems, training programs, and so on — have been restructured in order to better meet the customers’ needs.”
Statistics have shown that organizations that have aligned their internal structure and systems with the new strategy, their rates of seeing the efforts to fruition are much higher.
Adopt the right technology:
The adoption of the right technology should be an integral part of the technology spectrum of any organization. However, this does not mean CRM is synonymous with technology. It is always better to employ technologies that are on par with the capability of your organization.
So, you must first examine low-technology alternatives such as handwritten notes and follow-up phone calls. Then, augment your technologies to suitable strategies that promote effectiveness over efficiency.
Keep measuring your benefits:
CRM is considered to be a lucrative investment. The costs of investment will be earned and equaled in the short term and in the long run CRM will contribute to company profits with big and huge returns and sales.
However, the stats show a different story. According to a renowned IT research firm, Giga Information Group, there are only 30% of companies employing CRM development strategies measure the benefits associated with CRM. If you do not measure the lucrative return of investing in CRM, then the huge cash flow will soon transform into a cash drain.
A successful deployment of CRM strategies entails monitoring which in turn needs the measure of right variables involved in the link. You may go on tracking the number of inbound service center calls will not show you the quantum of customer satisfaction your product has met.
These things will bear no fruit even if they are precise and automated measurements. Unless you get the right indicators, CRM will not return you with profits.
Build the Right Relationships the Right Way:
A well designed CRM solution will help you foster good relationships with your customers. A well-planned CRM strategy will simplify acquiring, nurturing, and managing your customer relationships.
On the other hand, if you have taken down a poor CRM solution, then the nature and quality of your customer relationships will not improve. A mechanistic CRM product will target profitable customers and take them away from unwanted sales or a litter of junk surface mail, futile e-mail, or annoying telephone solicitation.
In order to build and strengthen your customer relationships in the right direction entails very comprehensive customer view taken and applied from a CRM package. So, first, begin with knowing and learning about what relationships are “right” for your company.
This means you have to monitor your customer strategy. The right relationships depend on the following factors:
- organizational personality
- company and industry characteristics
- geographic location
- products or services offered