Customer
Relationship Management (CRM) is a process to know
more about customers' needs and behavior in order
to develop stronger relationships. In fact, it is
a tool that would bring together the information on
several matters like sales, marketing and marketing
trends. Some of the tools are Six Sigma, which is
essential to refine our business practices, customer
relationship management, to empathize the customers,
etc. Companies come in touch with customers, by interacting
with them through one of the above means. But unfortunately,
in spite of these array of tools, companies are unable
to deliver what exactly a customer is expecting. These
tools would undoubtedly help in developing business,
but often fail to deliver the required customer service
due to poor implementation. Companies' mission statements
like "customer is the boss", "customer
satisfaction is our motto", are confined only
to corporate boardrooms and plannings, because companies
have forgotten that the customers are the foundation
of any business. Peter Drucker, 20th century's most
influential management guru, reminds us that the very
purpose of business is to create a customer. Though
customer loyalty is the budding word on every executive's
lips, it is still found wanting. This probably paved
the way for customers decision so as to not to do
business with a particular merchant repetitively.
In this scenario, how the companies can retain customers
is a big challenge.
History
reveals that investments in CRM structure literally
yielded nothingbe it in terms of information or financial
returns. But coming to customer information, it has
revealed what customers have purchased in the past,
and also how their needs, tastes and habits are changing.
The Gartner Consulting Group estimated that billions
of dollars invested in CRM resulted in little return.
A survey by The Week, revealed that of all
the companies that are implementing CRM, 93% claimed
that increased loyalty and customer satisfaction would
justify their CRM investment. Another interesting
piece of research by Gartner is that some of the possible
reasons for substandard services to customers are
due to the tools used by the agents, and not by the
services offered by them. Top companies have even
appointed a senior head for CRM and not surprisingly,
most of the companies have achieved disappointing
results. Companies should not be complacent with today's
results, i.e., having customers today does not guarantee
them tomorrow. Their retention depends upon the evaluations
they make regarding the kind of benefits they deserve
from you, with your competitor. |
