Does CRM actually work?

“CRM is concerned with the creation, development

and enhancement of individualised customer
relationships with carefully targeted customers and
customer groups resulting in maximizing their total
customer life-time value” .
 “The focus of CRM is on creating value for the customer
and the company over the longer term”.
 When customers value the customer service that they
receive from suppliers, they are less likely to look to
alternative suppliers for their needs.
 CRM enables organisations to gain ‘competitive
advantage’ over competitors that supply similar products
or services.
 “Today’s businesses compete with multi-
product offerings created and delivered by
networks, alliances and partnerships of many
kinds.
 Both retaining customers and building
relationships with other value-adding allies is
critical to corporate performance”.
 “The adoption of C.R.M. is being fuelled by a
recognition that long-term relationships with
customers are one of the most important
assets of an organisation”
 Strategically significant customers need to satisfy at least
one of three conditions:

 Customers with high life-time values (i.e. customers

that will repeatedly use the service in the long-term).

 Customers who serve as benchmarks for other

customers.

 Customers who inspire change in the supplier.

 CRM seems to be the mantra that a growing
number of businesses nowadays seem to swear by.
 It is being looked at as the first step into a whole
new era of marketing and one that is hence crucial
to all businesses today.
 CRM is a valuable tool that every business
absolutely must possess.
 The competition is getting stiffer and stiffer  with all
kinds of new products being introduced to the market
everyday.

 Today’s consumer is spoilt for choice.

 Effective customer service and support is the only

solution to keeping your old customers and even
attracting new ones.
 The challenge is to connect with your customers, not have the latest and
greatest technology.
 Yes, CRM can work with the right balance of planning, people, and processes.
 The best practices start with a clear definition of customer expectations and
grow into a service oriented organization.
 The inspiration can come from the top, but success is dependant on the rank
and file.
 Everyone must participate for it to work.
 The goal is to create a customer experience so phenomenal that your
customers become your recruiters.
 Essentially, CRM works by gathering information about customers and analyzing
the information collected. An example of this would be supermarket discount
cards.
 When a consumer scans his or her card, and then his or her items, the items that
customer bought are entered into a database.
 This gives businesses an accurate idea of which customers buy what. Businesses
then analyze this information.
 After analyzing the data collected, businesses can adjust their marketing
campaigns and increase sales.
 Customer Relationship Management brings the company closer to the
customer. CRM closes a relationship gap that can be formed between the
business and its customers.
 CRM is also useful for customer service. Businesses can use
automated CRM applications to analyze customer
complaints, or compliments, and change the business
processes accordingly.
 Interestingly enough, CRM products also run many
automated call-centers for businesses (I.E. customer service
systems).
 CRM applications and practices are used to make businesses
more efficient and improve customer satisfaction.
 CRM applications are applications that run on the same
principals as Microsoft Word and Excel.
 There are many values that can be filled in. Once these
values are filled in, the data needs to be analyzed and
interpreted.
 A major advance in CRM application technology is the
invention of applications, which can collect data, and analyze
it at the same time.
 This new technology will make CRM even more effective and
efficient.
 Technological approaches involving the use of databases, data
mining and one-to-one marketing can assist organisations to
increase customer value and their own profitability.
 This type of technology can be used to keep a record of
customers names and contact details in addition to their history
of buying products or using services.
 This information can be used to target customers in a
personalised way and offer them services to meet their specific
needs.
 This personalised communication provides value for the
customer and increases customers loyalty to the provider.
 Reduced costs, because the right things are being done (i.e..,
effective and efficient operation).
 Increased customer satisfaction, because they are getting exactly
what they want (i.e. meeting and exceeding expectations).
 Ensuring that the focus of the organisation is external growth in
numbers of customers.
 Maximisation of opportunities (e.g. increased services, referrals,
etc.)
 Increased access to a source of market and competitor
information.
 When introducing or developing CRM, a strategic review of the
organisation’s current position should be undertaken.
1. What is our core business and how will it evolve in the future?

2. What form of CRM is appropriate for our business now and in the
future?

3. What IT infrastructure do we have and what do we need to

support the future organisation needs?

4. What vendors and partners do we need to choose?

 For any business, successful Customer Relationship Management
navigation is becoming increasingly important in today s competitive
business world.

 Customer expectations are always increasing, and business services

must increase along with these expectations.

 CRM is the method through which businesses can connect with their
customers and therefore serve them better.

 Businesses with successful CRM strategy and applications will notice a

large increase in sales, customer satisfaction, and simply the overall
success of the business