When most companies implement a CRM system they are hoping to gain a competitive advantage over their competitors. The process of this implementation can be long and costly, but for most the investment will be worth the investment.
To help make a CRM system better and more profitable, they must find a way to make their system work better than the next company. To do this most effectively Christopher Bucholtz says that a company must look to its customers for the answers. When a customer returns to a company, the company should have a full profile on the client already so that they may help the customer in the fastest manner. Customer service is the key to retaining customers and building customer loyalty today. We no longer live in the age where mass emails are sent to every person on a company’s contact list, the emails are customized according to the habits and trends of the specific customer. As we learned in the presentation by Brian McManus, the director of technical infrastructure at Under Armour, the same marketing strategy cannot be used to get mothers to buy Under Armour for their children, as they use to convince college students to try Under Armour. Under Armour has a highly developed CRM system that tracks customers from the first time they enter the site. Under Armour know what the person buys, how much they buy, how frequently purchases are made, and also many demographic facts about the person from surveys and other websites the client visits. This specialized data according to Bucholtz is what will separate the CRM leaders in the future.
To Increase revenues in a tough market, the company must find out what makes new customers come back to the company and help make this experience available to all the companies’ customers. If one person returns to a company because of something the company did for them, the idea is that this service would bring other customers back too. In today’s market it is much more cost effective to retain clients, than to have to market to new customers. If a company can adjust their current CRM system slightly based on customer comments, the company can position themselves to increase both sales and their profit.
Reference
(1) Tricks of Your Trade: Little Things That Can Make CRM Better By Christopher J. Bucholtz http://www.crmbuyer.com/story/69479.html
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I agree that customer service is the key to retaining businesses. Knowing the needs, wants, likes and dislikes of your customers gives you invaluable knowledge that will help market your products. CRM systems help improve this customer service because they help to collaborate all the information about the customers and create a full profile that helps determine customers buying behavior. I completely agree with Chris' point that knowing these facts will help the companies increase sales and profits. Any customer is going to respond better to an email or promotion catered to their likes then a generic one sent to the masses. Through the use of these systems businesses have the ability to develop strong customer relationships which helps lead to customer loyalty and profits.
ReplyDeleteConsumer responses to any organization are crucial to its growth and improvement, and CRM plays a key role in organizing and processing consumer data. Customer Resource Management allows companies to target specific customers and market segments, which I agree is important to successful marketing and building customer relationships. When trying to appeal to a wide range of consumers, it is important to provide people with the information they want and need, and as little unecessary information as possible ensure that the proper message is projected. CRM has become a crucial part of communicating with customers and meeting consumer demand.
ReplyDeleteI agree that a CRM system cannot succeed without customization implemented in part by the customers themselves. Mass marketing does not work in this day and age, and every consumer is looking for the company that will best meet his or her needs in the most friendly and efficient manner. I like the reference to Under Armour, they have a phenomenal CRM system that effectively retains customers and helps them enter new markets and increase their market share. Any company that attempts to use a standard CRM system for every customer will quickly learn to customize the system after it experiences significant failure in retaining customers and acquiring new ones.
ReplyDeleteI agree with this article as well as all of your posts. From my experience as a car salesman, in the highly competitive, cutthroat environment that technology (most notably the internet) has created for sales business the only way to differentiate yourself from the competitor is through customer. Taking car sales, for instance: "Gross" refers to the profit made on each individual car above the break-even. In the past, profits for dealerships came in the form of high grosses, but in the age of the internet prices are no secret. Grosses are small, so your only chance for profit is through volume sales. The only way to have increasingly high volume sales is through customer retention. The only way to retain customers? Through excellent, top notch customer service and a wonderful experience. An essential part of this experience is the customization allowed and the personalization of the sales process created by a CRM system like the one discussed above.
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ReplyDeleteI agree with the article as well. I believe that CRM systems that are customized for each customer's wants and needs will pay off. We get daily junk mail in our email box from companies that we buy goods from. However how often, do we actually read them? Probably not that often because usually the emails are a nuisance and do not always interest you. If you only receive emails from companies when they have a product that are off great interest to you, you are more likely to read them and more likely to buy the product. This will also leave you feeling happier with the company and the product because you do not feel like you are just one of the masses but rather you will feel that you have a personal relationship with that company. This phenomenon is almost like getting to know a certain salesperson well in person who you trust and continue to buy from because of your personal relationship. I believe customized CRM systems will help put the personality back in the hollowness of technology.
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