what's customer relationship management?

Question

1. Benefits of customer relationship management
2. Customer retention
3. Customer satisfaction

Answer 1

Customer relationship involves building goodwill with customers by providing good products and service and retaining them. Customer retention means whether you are holding on to your customers or are they buying the stuff from somebody else. It has to do with customer loyalty and what you can do to keep your customers happy and coming back for more.

In the current business environment where acquiring each new customer takes significant investments, customer retention has never been so important to an organization’s health. Recent research has shown that lost customers will simply stop using your product or service without telling you why, and that lost customers are many times more likely than happy customers to share their bad experiences with friends and colleagues. Do you know your customer retention rate and why you have lost customers recently?

Top reasons for low customer retention rates tend to include:

Service issues (bad or confusing)
Pricing issues (too expensive or confusing)
Better offer from competition
Location changes, or
Product or service no longer needed.

Is the customer staying with you out of his own choice? Or is he exhibiting passive loyalty?

Passive loyalty or inertia loyalty can occur due to a variety of reasons and under a number of different scenarios where the customer is exhibiting repeat buying behaviour- not out of choice, but because he is forced to do. In such a scenario, retention rate could be really misleading as an indicator of future potential for business. What are the cases of passive loyalty?

Situations of quasi-monopoly
Habitual buying
Risk minimization
Switching hassles
Lack of a decent alternative

You can read more of the above in the links provided.

Answer 2

Customer relationship management means that the business is focused on how to handle customers properly. There are systems that can help with CRM, or it's possible to create your own system that works for you. When companies use relationship management techniques to handle customers, they have a better chance of retaining those customers. They know their names, birthdays, and other information, and they make sure the customers are shown appreciation. They may go as far as to send out a card or email for a birthday or other special occasion, which helps to build loyalty. Having the right tools can make CRM much easier.

Answer 3

Customer Relationship Management mainly known as CRM is a process which is often taken by the companies to make a relationship with their customers through various phases. It mainly focuses on Customers welfare. The companies maintain the current customers and also they give best deal to them. This CRM has certain rules or things that have to be maintained while a company is using this process to get connected with their old and new customers. CRM also can be turned out into computer software database where the information of the client can be put on and stored. Nowadays CRM is an excellent idea to do a complete technological business in this competitive world.

Answer 4

Sandy, the first responder to your question, hit the home run. I'll add one thought: customer-centric thinking is as much an attitude as it is a process. The process helps see http://lindellassociates.net/_wsn/page8.html for a process that works: the attitude comes from the realization that sales, product marketing, engineering, manufacturing, customer support each understand a different aspect of your customer's needs, and each contributes to the whole understanding of how you best deliver value to that customer. Develop a customer-centric attitude and satisfaction and retention rise.

Answer 5

It is not an invasion of privacy becuase the CRM tools are optional and usually a customer has to opt-out to this information. Such as a reward card. Price discrimination is not the goal of a CRM. The CRM allows the company to track trends in order to take advantage of the needs within demographics but not to take advantage of demographics. This is a good tool to manage segmentation. COSTCO uses a CRM system and will market those who frequent a COSTCO store more than those who rarely occupy the store.

Answer 6

CRM are customer relationship management is a systems for managing a relationship for customers and your potential customers.

http://soffront.com/customer-service

Answer 7

This is the best one http://www.boomcrm.com/