Page 99 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes steps can be taken to avert the loss of customers at critical points along the way. Even a small
improvement in retention can result in a significant rise in profitability and your overall ROI.
Since all organizations continually update customer data, reviewing and analyzing the data will
identify opportunities where up-selling, cross-selling and service sales can be increased. Sales
data, for instance, can indicate which customers are due for product/service upgrades or warranty
extensions.
The development of the data strategy as it relates to retention issues should address questions
such as:
(a) What characterizes our best customers, and what keeps them loyal?
(b) How do the information and service needs of new customers differ from those of established
customers?
(c) Is it necessary to keep all prospect information once a customer relationship is established?
(d) What changes does the organization need to make as the relationship goes along?
(e) Were any products returned and why?

(f) How many service calls did customers place?
(g) How were they resolved?
(h) What was the time to resolution on those calls?
(i) What is the potential for developing other customers such as these?

(j) Why does one group or class of customer respond to opportunities when another does
not?
(k) Choice of a CRM Platform

A company’s choice of a CRM solution will affect its ability to collect, analyze and use data. A
balanced CRM solution should offer the functionality the organization needs and provide the
agility to help users address changing demands in the marketplace. The ideal CRM solution
should be timely in that it is quick to install and deploy, and it should be cost-effective from its
initial deployment through its long-term use.
All information about a particular customer should be in one database (not separate databases
for marketing, sales or support), and everyone in the organization should be looking at the
same data. Universal access to information by all departments makes it possible to present a
unified face to each customer.

In addition, the CRM solution should be customizable to reflect the unique business outlook
and preferences of the organization using it. It should be readily reconfigurable to record new
types of information or to discontinue collecting information that is no longer relevant or is not
useful. In short, it should be adaptable to new requirements as the needs of the organization
evolve.
Today’s Internet technology enables companies to use customized relationship management
services hosted by Application Service Providers (ASPs). An Internet-based solution can make it
easy for prospects and customers to use self-service tools and information request forms via the
Web. The CRM solutions offered by the best ASPs include management and administrative
tools to monitor application usage and provide expected levels of service.
Developing an effective data strategy for the CRM process is a way to develop the information
you need to better run your company. Ultimately, it comes down to deciding who you want to

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