Friday, March 9, 2007

What is CRM?


CRM (Customer Relationship Management) defines company's customer-oriented business philosophy, where the efficient mechanism of cooperation with the client penetrates all the company's processes.


We determine CRM as the whole system (processes) supporting customer relationships though the whole cycle, which aimed at achieving the main goal: creation of the workflow for attracting new customers and developing existing ones.Due to this, minimization of human element in customer relationships is achieved along with the absolute transparency of operations in sales, marketing and customer service spheres.


CRM solution consists of 4 components:

customer-centered organizational structure, business processes, regulations of client servicing and supporting software.


Regulations and rules of client servicing have to penetrate all the operations of company: sales, marketing, service, logistics, production, finances and other departments. Though the main regulations affect mostly front-office (sales, marketing and service), the level of customer satisfaction and loyalty depends on back-office as well, for instance product quality, delivery period, settlement of accounts with contractors.Relationship management means attracting new clients, changing neutral clients into loyal customers, turning devoted customers into business-partners (agents). This scheme is applicable to any kind of market.


We start with attracting new clients, and then create the relationships with them, gain confidence; as a result our customers form the network of our subagents. Only competent customer relationship management allows following this system.Regulation of client servicing is a chain of minor elements that get set aside quite often. Nevertheless these elements play key part:

the phone call answer scenario,

the speed of response to a customer request,

the structure of business proposal,

the scheme of loyalty program,

adjacent products purchase offer etc.


As with all other projects CRM project starts with the idea, strategy and plan. The next stage is the development of regulations and rules, processes of client serving, employees' job descriptions. Automation of customer relationship processes is significant, but not the first step of customer-centered company creation. The software product is a handy instrument that will support already existing regulations and processes and develop on a par with the company. This project is a foundation for exemplary customer-centered business creation.


Source: MIFS.si


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