Relationship in the context of CRM
The most important element of CRM is “Relationship”, and surprisingly, it takes the backseat too often. Is it not important that we invest time in our customers, we partner with them in times of need and we lend a helping hand to them in changing dynamics ?
If we look around in the customer relationship space, the way you make the first connect with a potential customer is through building a relationship through a medium, getting them to relate to the product in one way or another. But sufficient importance is not given to maintaining that relationship with an existing customer, the result being that that over time the relationship is strained. Consequently, when someone else offers a better relationship, the switch is natural.
What could be some of those elements in building strong customer relationships?
- How would you feel if in your bill you suddenly get a discount for a specific month for being the privileged customer, probably a small cost to the company keeping in mind the costs associated with churn.
- What if the customer gets a Thank You card delivered after they raised a specific glitch in the system – the solution of which could save you significant amounts?
- Events like customer meet could give a much needed boost to relationship building with your customers and knowing from them what clicks.
- Even automated birthday or anniversary wishes makes your customers feel special and makes the relationship feel less transactional.
How do you benefit in the bargain?
- From a business perspective, an increase in business revenue is a good benefit to begin with. What is also equally beneficial is that each customer relationship is so strong that it results into a word of mouth referral for your business. However, with rising competition, simply retaining the customer with the same business (at lower internal costs) could be a big positive in itself.
- Using the relationship paradigm you slowly help customers move to newer avenues of revenue, something which also adds value for them. If done consistently, this can go a long way in successful retention.
Like every other “relationship”, customer relationship needs to be nurtured – one step at a time. If the relationship is strong, there is every possibility that a customer will accept the occasional misstep on your part. And that could be the true test of the deep strength of your customer relationships.
Comments
If we look from a wider perspective of business development,customer relationship is the top criteria.You can earn huge amount of profits by developing as many customers as you can.Many companies have strategies to increase the number of buyers.But only some succeed in maintaining those buyers for a long period time.
Some of the tips to attain these objectives are Streamlined sales and marketing processes,higher sales productivity,added cross-selling and up-selling opportunities, improved customer service, loyalty, and retention,increased call center efficiency,higher close rates,better customer profiling and targeting,reduced expenses,increased market share,higher overall profitability.
Posted by: customer relationship management | January 16, 2010 5:02 AM
Talking in terms of CRM I guess these days the buzz word is improving the customer relation and a lot of emphasis is given on retaining the customers and winning customer loyalty. In the present day context I feel that this needs to be viewd in 2 ways:
Firstly as the markets are becoming more and more competitive, the product offerings tend to take a back seat and the focus falls entirely on the CRM initiatives. I feel that despite the fact that more focus is on building customer relations still the product quality and offerings cannot be ignored. The CRM initiatives help only when the quality of 2 products is same and the only differentiating factor is the relationship with the customer.
Secondly it is also important to undertand that even if the products are par excellence and if the after sales or CRM initiatives are not up to the mark, then too the company tends to lose on customers.
It should be taken into account that both the factors i.e product offerings and CRM measures need to go hand in hand and neither of these should take a back seat. Overshadowing of one would make the efforts spent on the other as totally futile.
Posted by: Anshul Tiwari | January 28, 2010 5:13 AM