CRM - a major component in customer retention business strategy
In the world of business, the main focus is always on customer satisfaction. Because of this, businesses need to have an operative plan for keeping the ‘customer’ satisfied and happy with the product and service before, during, and after the sale. Therefore let’s define what customer retention or relations management, (CRM), is and how Customer Retention programs can aid in the processes surrounding the daily lives of the customer service and sales departments.
Customer retention has many definitions because of the varying views. However, the most common of them, which carries the most weight, is that CRM is an technology-enabled business strategy. It is through this strategy the organization focuses on satisfaction, through the fostered customer issue/resolution behaviors and the practice of focused customer processes. This means that the outcomes become optimized in profitability revenue, and the satisfaction of the customer.
Furthermore, the company has to have the philosophy and alignment for focused customer intimacy. When this happens, the mission of the business gives it the purpose aimed at long-term relationships with their customer base. Stating this, and how information technologies affect this, is with the customers information within a database the sales team can access it to find better solutions to fit the needs of the customer, and generate leads from the information about similar customers already working within the framework of the company.
Moreover, this presents an organized picture of what the needs of the customers are and provides a management tool for tracking a sale throughout the stages of lead generation to closing the sale. Because of the importance of customer centricity, the success with CRM software allows the following:
- An automated sales process
- The forecasting and monitoring of sale activity
- Increased response time to customer queries knowledgeably
- Lead generation and the leveraging of greater opportunities
- Creation of targeted marketing focused on the proprietary customers
On the side of customer service, we find that the CRM programs allow the CSR to manage and resolve customer issues and queries in an increased capacity through the integration with an ERP system. With this structure, we get a real time delivery of the customer’s information from the back and front office systems presented to the CSR the moment they need to view it.
In the case of a business having a small stature the aim of utilizing a relationship management system for their customers will benefit both their sales and customer service departments because it presents the customer information in an organized manner which facilitates increased profitability’s and long-term retention that turns into a lasting relationship with your customers.
If you have questions on what types of programs to use or if you wish to implement this type of strategy into your business, please contact us and we will be glad to act as you guide to building stronger customer relations that result in their satisfaction and retention.