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More and more firms are trying to decide which type
of customers they can serve well rather than trying to be
all things to all people. Once a firm wins customers and begins to
be looked upon as desirable, the challenge shifts to building
relationships and turning them into loyal customers who will generate growing
revenue streams for the firm in the future. This article discusses the
philosophical aspects of CRM and their adoption of particular
techniques; emerging trends and potential of CRM in service and merchandise
sectors; and the changing pattern of the industries, outlining the way
in which a solution like CRM can help organizations acquire new
customers and retain them, and in the process, increase profitability and
market share. It also attempts to explain CRM practices, its frame work
and how it is fast emerging as the new age mantra, focusing on diverse
issues such as variables of relationship and applications of CRM in
different business situations.
Building relationship is a challenge, especially when a firm
often has several millions of customers who interact with it in many
ways (from e-mail to call centers to face-to-face interactions). When
implemented well, a CRM system provides managers with a useful tool to
understand their customers and subsequently tailor their products,
service, cross selling, and retention efforts on a one-to-one basis.
Marketers have always known that it is important to retain
existing customers before looking for new customers for expansion.
However, the quantitative or monetary impact of this age-old wisdom is well
calculated by firms today. Therefore it is necessary to sit back and enjoy
not just a single time patronage of a customer, but to mobilize efforts to
ensure continued patronage of the same person as customer never purchases
a product or service - he purchases the attributes (satisfaction). |
