Atom of CRM - Part 1
By Richy Yati Mishra
Customer Relationship Management... Some say it's a strategy and some say it's a process. It is an art or even could be science of understanding the customer behavior. However, in essence what is common is that we need to learn more about customers' needs and behaviors; we need to develop a strong relationship with customer. And through this the overall goal is to find, attract and win new clients, farm and retain existing clients, get the old clients back and reduce marketing expenditure.
Well if relationship is the ultimate factor, then how to manage that? Why a customer is having a good relationship with one or two companies when there are N numbers of competitors? Why not all the companies are able to manage the relationship with equal effectiveness? When all the companies are investing in CRM, almost all the companies are equipped with latest tools and technology, then how is one company better than the others?
What is that factor which is binding customers with the company? How most effectively can we understand customers' needs and behaviors? What exactly are we doing in CRM? There are many theories, strategies and processes to achieve and this blog tries to explain it from the core..
I believe it is the feeling that binds. It is all about how to make your client feel better than others. Let me explain the same thing from our personal life. Why are few people closer to us than others? Why do we like some and dislike others? What is that which creates soft corner towards few people? It's the feeling and how we enjoy the company of the other one. Few people make us feel good and gradually we create a good feeling towards them and that creates a relationship.
So CRM is all about the feeling of customer and how to make the customer feel better. It's easy to mold the feelings of an existing customer more easily than a new one and that's the reason it takes only 15% of the cost of marketing to do business with an old customer than attracting a new one. If we have to make a great relationship with a particular customer then all the time we should think, what I should do to make my customer feel better. That may come in any form let it be security, confidence or profit to his asset. This is the way one learns Customer Relationship Management.
Now let me try to validate this theory with 7 Os framework of consumer behavior. This framework studies how consumers (in this case customers either individuals or groups) select, buy, use and dispose of goods, services, ideas to satisfy their needs.
To understand consumers, marketing managers rely on 7 O's framework of consumer research.
(1) Occupants: Who constitute the market?
(2) Objects: What does the market buy?
(3) Objectives: Why does the market buy?
(4) Organizations: Who participates in buying?
(5) Operations: How does the market buy?
(6) Occasions: When does the market buy?
(7) Outlets: Where does the market buy?
Marketing, consumer behavior and CRM are very closely coupled with each other. So, in the next part, we will explore the 7 O's framework of Customer Relationship Management using its atom - Feeling.
About the author: Richy Yati Mishra is an associate consultant working for CRM domain; focus on go-to-market CRM solutions. He has more than 3 years of experience in IT industry.
What is that factor which is binding customers with the company? How most effectively can we understand customers' needs and behaviors? What exactly are we doing in CRM? There are many theories, strategies and processes to achieve and this blog tries to explain it from the core..
I believe it is the feeling that binds. It is all about how to make your client feel better than others. Let me explain the same thing from our personal life. Why are few people closer to us than others? Why do we like some and dislike others? What is that which creates soft corner towards few people? It's the feeling and how we enjoy the company of the other one. Few people make us feel good and gradually we create a good feeling towards them and that creates a relationship.
So CRM is all about the feeling of customer and how to make the customer feel better. It's easy to mold the feelings of an existing customer more easily than a new one and that's the reason it takes only 15% of the cost of marketing to do business with an old customer than attracting a new one. If we have to make a great relationship with a particular customer then all the time we should think, what I should do to make my customer feel better. That may come in any form let it be security, confidence or profit to his asset. This is the way one learns Customer Relationship Management.
Now let me try to validate this theory with 7 Os framework of consumer behavior. This framework studies how consumers (in this case customers either individuals or groups) select, buy, use and dispose of goods, services, ideas to satisfy their needs.
To understand consumers, marketing managers rely on 7 O's framework of consumer research.
(1) Occupants: Who constitute the market?
(2) Objects: What does the market buy?
(3) Objectives: Why does the market buy?
(4) Organizations: Who participates in buying?
(5) Operations: How does the market buy?
(6) Occasions: When does the market buy?
(7) Outlets: Where does the market buy?
Marketing, consumer behavior and CRM are very closely coupled with each other. So, in the next part, we will explore the 7 O's framework of Customer Relationship Management using its atom - Feeling.
About the author: Richy Yati Mishra is an associate consultant working for CRM domain; focus on go-to-market CRM solutions. He has more than 3 years of experience in IT industry.
