Customer Relationship Management, as the name suggests, is a tool to help you enhance your relationships with both existing and future customers. Think about the old days, when you used to shop at the store around the corner. The storeowner usually knew all of their customers by their names, and also knew what was going on with their family members. They also knew their customers’ tastes, their likes and dislikes, and on most occasions, they were able to predict what their customers were going to buy and the new products that they would like.
As a customer, you’ve probably experienced a relationship with a particular storeowner. As a result, they continued to enjoy your business for long time. Nowadays, there are huge corporations selling a wide range of products, locally, worldwide and on the Internet.
How can a big company possibly manage its product line and worldwide customer base in a global complex business environment? The answer is CRM.
Good Service = More Business
For any small business, customers are the greatest asset, and it is imperative for your business to build a relationship with your customers and to keep them happy. The main factor for this school of thought is that it is much easier to serve your company’s existing customers than to attract new customers – which in many cases, has proven to be as much as 5 times more expensive.
Good service is one of the main things that any customer remembers, and this will boost your company’s reputation, leading to increased loyalty and revenues.
Marketing With the Help of a Database
CRM originated from the database marketing concepts of the early years. It uses information technology to help businesses develop and maintain relationships with customers. Let’s look at an example.
Previously, to get the goods that you needed from the neighborhood store, you would call the store and tell the shop owner what you wanted. Immediately the store owner would recognize your voice; they remembered you, knew where you lived, and had the goods delivered to your home – all without you having to give your address.
Today, with the help of advanced technology and CRM databases, the same thing happens when you order a pizza from Dominos over the phone. You tell them your phone number, and they will confirm the address – even though you haven’t told them yet.
As a matter of fact, you have given them your address the first time you called (even if that was months ago), and they have maintained it in their database. This is done with the help of CRM software, and what they are effectively trying to do is to develop a meaningful relationship with you – the customer. Over the period of time, when they have sufficient data, they will even know your likes and dislikes, based on your previous orders, and may suggest something new for you to try. Such personalized and exceptional customer service goes a long way in the form of increased sales, and also helps in attracting new customers.
Today, CRM is found in all types of business of all different sizes. By focusing on your customers, no matter what you sell or what service you provide, you can be sure that your business will be successful.