eCRM: Select and manage the most valuable customer relationships

It is difficult to state precisely what Customer Relationship Management (CRM) means to everyone. Ironically, the term is also applied in those aspects of business that even remotely interacts with a customer. Understanding the concept of CRM will help in decisions relating Customer relationship management product, CRM software and CRM solutions.

What is Customer Relationship Management (CRM)?

CRM - Customer Relationship Management can be defined as the strategies, processes, people and technologies used by companies to successfully attract and retain customers for maximum corporate growth and profit. CRM initiatives are designed with the goal of meeting customer expectations and needs in order to achieve maximum customer lifetime value and return to the enterprise. The use of customer relationship management products, CRM software and CRM solutions will enhance the effective implementation of CRM in an organization.

In simpler terms, CRM is the technique of establishing and maintaining long-term business relationships with your customers. CRM involves utilizing the data collected during your customer interactions to determine the demographics and future needs of each customer.

Customers and relationships with them have always existed right from the birth of the 'buying and selling concept'. Then, why the hype about CRM in today's industry? Is the petite 'e' changing trends?

E-CRM is not just customer service, self-service web applications, sales force automation tools or the analysis of consumer buying behavior on the internet. E-CRM is all of these initiatives working together to enable an organization to more effectively respond to its customers' needs and to market to them on a one-to-one basis.

The Importance of CRM:

Competition, driven by globalization and the internet has turned things around. Customers have a variety of choices and most importantly, they have become more knowledgeable and demanding. It is no myth that they are King. With this scenario, companies have realized that it's not just enough to satisfy and delight them but also build genuine relationships in a way that would benefit them.

Technology changes everyday. And the key to stability in today's ever-changing industry is forging long-term relationships with customers. A company cannot stay ahead for long by holding the advantage of having some web product or service. Here's where eCRM makes sense.

According to industry research, it is 10 times more expensive to pursue new customers than to sell to existing ones. CRM can help gain a greater share of a loyal customer's business.

Customers can be divided into three zones:

1. Zone of defection where customers are extremely hostile and have the lowest level of satisfaction .
2. Zone of indifference where customers are not sure. They have a medium level of customer satisfaction and customer loyalty towards the company.
3. The third levels of customers are in the zone of affection described as "Apostles". CRM focuses on bringing customers from level 1 to level 3 and retaining apostle customers.

Customer demands for customization are increasing with every passing day. This has made companies shift their focus from "mass production" to "mass customization". The present scenario of companies using "poorly implemented" multi channel strategies for living up to the expectations of customers is bringing both customer satisfaction and customer loyalty down the ladder.

'Big Guys' in the CRM Industry

IT managers and analysts say customer-relationship management offerings are becoming more important in the effort to retain customers. "CRM is giving us more touch points with our passengers, which allows us to provide better customer service," says Ron Czarnecki, VP of computer services at Princess Cruises Inc. in Valencia , Calif.

Also on the services front, IBM Global Services and Sitel Corp., a call-center service provider, cemented their relationship last week with a strategic alliance; Emerald Solutions Inc., an IT project-management firm, launched a customer-relationship management practice.

Some of the major players in the Customer Relationship Management (CRM) industry are Amdoc, Convergys, CSG Systems, ICT Group, Oracle, PeopleSoft, SAP, Pivotal, Siebel Systems etc.

Conclusion

Current estimates indicate that by 2005, spending on CRM systems and services will increase nearly 300 percent over 2000 levels. Is your organization equipped with enough resources and tools required to exceed your customer's expectations and maintain their trust?

We at Stylus Systems believe in retaining our customers based on the trust they have in our company. That's why protecting customer's privacy should be at the top of any CRM agenda.

Stylus Systems Pvt. Ltd. (www.indiawebdevelopers.com) is a successful Indian based company specialized to integrate existing solutions or develop custom eCRM solutions. Please contact us here for your eCRM requirements.

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