Sam Miller asked:


To determine how a company is performing in terms of customer service, some customer service measurements are used regularly. These measurements are designed to assess how satisfied customers are with the services provided by a company.

Customer service is commonly defined as a series of activities that are organized to increase customer satisfaction levels so that a product or service will exceed customer expectation. Customer service may be extended in an automated manner through self-service means like support Internet sites, or by persons like sales and customer service representatives. Usually, the main basis of customer service is customer data collection or demographics. Today, a wide variety of customer service tools are now available. Aside from support websites, databases that determine individual customer preferences and buying patterns and specialist software are now used. Moreover, companies also have come up with new ways to capture feedback from customers. A few of these new feedback channels include mobile email and text messages. By knowing the perceptions and opinions of customers, companies are able to find ways to enhance the quality of the services they provide as well as improve the experience of their customers.

Several companies have integrated Customer Relationship Management (CRM) technologies to their operations. CRM is a multifaceted process that allows companies to have better knowledge of the needs, wants, and buying patterns of their customers. By making these data available for customers, companies are better able to anticipate the needs of existing and prospective customers. However, CRM initiatives should be aligned with customer-based strategies, as this technology will be useless if its implementation ends up with its installation. CRM usually supports several business processes including sales, marketing, and customer service. This technology enables a company system to compile a customer’s contact history and allows customer service representatives to retrieve these data when needed. By keeping tabs of a customer’s contact history, customers would no longer need to disclose the subject of his previous interactions with a company customer service representative.

Setting customer service standards is a crucial step in assessing the quality of service provided to customers. When setting these standards, managers and other mid-level managers should make sure that they are realistic. These standards should not be too low for these would just encourage complacency and idleness. At the same time, they should not be too high that they are impossible to achieve. Moreover, the company must determine the standards that they need to measure and the most efficient way to measure them. When establishing measurements, it is recommended that managers determine why key customers patronize their product or service instead of the competition. Also, obstacles that hinder the company’s internal customers, or employees, from providing quality customer service should be identified. Processes that are critical for product and service delivery should also be regularly evaluated so that bottlenecks are eliminated early. Lastly, there should be balance between production cost, product or service quality, and cycle time. When fully and effectively utilized, customer service measurements will be instrumental for companies to achieve higher profit margins.

Sanjay Podder asked:


 

Steve Jobs, chairman and co-founder of Apple Inc. once said “A lot of companies have chosen to downsize, and may be that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.” In fact, customers hold the pillar of a business and regard as the most valuable resource in the market. In today’s highly competitive business world, the biggest challenge faced by the management is to create and maintain relationships with customers. It is a customer-centric business environment and lack of right attitude showed by management may adversely affect the business. To maintain healthy relationships with customers in order to maximize profit, the management has decided to adopt Customer Relationship Management, a business strategy to create a beneficial environment among customers.

 

The principle of modern business is something more than producing a product, pricing it, advertising it and making it accessible to target customers. Now businesses aim at building trust and developing long term relationship with customers, since they are becoming demanding, dominant and selective. As a manager, your role is to create relationship with customers so that your firm may aware of their needs, wants, and buying patterns. In this way, Customer Relationship Management helps companies understand, as well as anticipate the needs of current and potential customers.

 

It is pertinent to note that a manager does not cooperate with customers alone. There are different players, coordinating the manager in creating an overall valuable series of experiences, products and services for customers. While recruiting employees to give customer service, there is tendency to emphasize more on functional expertise, technical proficiency and knowledge rather than interpersonal or communication skills. The basic approach of Customer Relationship Management is to maximize the relation of an organization with all types of customers. Understanding the customers better allows you to provide customized products and services to the customers in order to gain their loyalty and satisfaction.

Dave Roth asked:


One of the most important things that a company can do is correctly manage its customer base ? and this includes potential customers, as well. These potential customers are the ones who talked to the company at trade fairs, and the ones who asked for information but then never bought anything. A lot of companies just write them off because they have not yet spent any money, but smart companies know that they just have not spent any money yet. They may be back, so it is a good idea to follow up with them ? without nagging them ? to make sure they remember that the company is there for them should they ever need anything. One of the best ways to do that is through CRM, or customer relationship management, software. This software is designed to store all kinds of customer information, including names, addresses, important dates, and any kind of notes that the company might feel is important. It is often used when people call in to an 800 line for service or sales, to record what is talked about, so that a salesperson can follow up later.

Not everyone likes CRM software, because some customers feel like it is very intrusive. They do not want their information stored, and they feel like their privacy is being violated. Used correctly, though, CRM is a very good choice, because companies can get the information that they want but yet not contact the customer or potential customer so many times that it becomes a problem or a nuisance. Getting the right balance between letting a customer know that the business is there and not inundating them with sales calls and information is also something that CRM can be very good for. The software can be set up to send out reminders at specific intervals, or to alert the salesperson on a particular day that there should be a contact made with a certain customer. By doing this, customers can be managed just like other aspects of the business. Being organized is very vital, and this is especially true today because the society is becoming a lot more global. People who only did business in their local town a few short years ago now can sell their goods and services to people all over the country and the world.

Not everyone thinks of this, but it is an important and valid consideration. The businesses that use CRM software find that they are better equipped to handle these global kinds of issues as well, making them better suited to handle large sales, build stronger client bases, and do more in the business world. Because CRM can help them meet deadlines and address other issues, it can move a smaller business into a more global and respected category is a short period of time, helping both the business and its customers to enjoy the benefits that come with things like that. Most customers think that CRM provides them a lot of benefits without too many problems, and most businesses would agree. The advantages that are offered to both salespeople and their customers are much greater than any problems that the software could cause, with the possible exception of software that stores sensitive information, and most of this is carefully guarded.

G.Jayalakshmi asked:


CUSTOMER RELATIONSHIP MANAGEMENT

*G.JAYALAKSHMI. Ph.D Scholar

INTRODUTION

CRM stands for Customer Relationship Management. It is a process or methodology used to learn more about customers’ needs and behaviors in order to develop stronger relationships with them. There are many technological components to CRM, but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends. CRM helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers.

In today’s highly competitive business environment, knowing the customers well and effectively interacting with them is a mission-critical exercise. This emphasis on developing and enhancing customer loyalty has evolved over the years and is now called Customer Relationship Management or CRM. The better a business can manage the relationships it has with its customers the more successful it will become. Therefore IT systems that specifically address the problems of dealing with customers on a day-to-day basis are growing in popularity.

The purpose of Customer Relationship Management (CRM) is to enable various organizations serve customers better through introducing them to a series of processes and procedures. This is done through implementing a successful CRM strategy through a software package that has been specifically designed to support these business processes and procedures.

TYPES OF CRM

There are several different approaches to CRM, with different software packages focusing on different aspects. In general, Campaign Management and Sales Force Automation form the core of the system (with SFA being the most popular).

Operational CRM

Operational CRM provides support to “front office” business processes, e.g. to sales, marketing and service staff. Interactions with customers are generally stored in customers’ contact histories, and staff can retrieve customer information as necessary. The contact history provides staff members with immediate access to important information on the customer (products owned, prior support calls etc.), eliminating the need to individually obtain this information directly from the customer.

Sales Force Automation (SFA)

Sales Force Automation automates sales force-related activities such as:

? Tracking leads

? Scheduling sales calls or mailings

? Tracking responses

? Generating reports

Analytical CRM

? Analytical CRM analyzes customer data for a variety of purposes:

? Designing and executing targeted marketing campaigns

? Designing and executing campaigns, e.g. customer acquisition, cross-selling, up- selling

? Analyzing customer behavior in order to make decisions relating to products and services (e.g. pricing, product development)

? Management decisions (e.g. financial forecasting and customer profitability analysis)

Sales Intelligence CRM

Sales Intelligence CRM is similar to Analytical CRM, but is intended as a more direct sales tool. Features include alerts sent to sales staff regarding:

? Cross-selling/Up-selling/Switch-selling opportunities

? Customer drift

? Sales performance

? Customer trends and Customer margins

Campaign Management

Campaign management combines elements of Operational and Analytical CRM. Campaign management functions include:

Target groups formed from the client base according to selected criteria

Sending campaign-related material (e.g. on special offers) to selected recipients using various channels (e.g. e-mail, telephone, post)

Tracking, storing, and analyzing campaign statistics, including tracking responses and analyzing trends

Collaborative CRM

Collaborative CRM covers aspects of a company’s dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. Staff members within the departments can share information collected when interacting with customers. For example, feedback received by customer support agents can provide other staff members with information on the services and features requested by customers. Collaborative CRM’s ultimate goal is to use information collected by all departments to improve the quality of services provided by the company.

Geographic CRM

Geographic CRM (GCRM) combines geographic information system and traditional CRM. Geographic data can be analyzed to provide a snapshot of potential customers in a region or to plan routes for customer visits.

CRM IMPLEMENTATION

CRM implementation differs from organization to organization but there are a few common steps one needs to follow to ensure a successful implementation.

There are many factors that could influence the success of CRM implementation. Some of them are:

Focus on All Business Aspects

In most cases the technology will have less to do with the CRM success. Therefore it is important to focus as much importance on communication training and other aspects as much as the technology involved. It is important to involve management at several levels, focus on communication need and indulge in adequate training of the concerned employees throughout the organization. If these items receive a level of focus comparable to the technical system, CRM implementation stands a better chance of succeeding.

Define the Business Problem

A business needs to clearly define the business problem see what benefits it wants to achieve and adopt the required measures. It is imminently important to clearly identify the business problem that the company needs to resolve. An organization needs to absolutely identify the desired benefits and make sure that the expected returns are generated at every stage. It is important to break down the entire process into smaller pieces that can be individually handled effectively.

Establishing Proper Metrics

Since companies normally wait for a five year period to see a return on investment. Every organization has to compulsorily define performance metrics to ensure that it measures the return on investment adequately.

Business Processes not Technology

In order to succeed at CRM all companies need to understand that it is not about technology alone but about business processes as well. While CRM changes a company’s business processes technology supports the processes. Most businesses make the mistake of actually assuming that the CRM is only about technology alone. This hampers business process development.

Implement Change

Most employees tend to stick with their old ways and are reluctant to adapt to changes, It needs to be understood that the implementation of CRM involves immense changes and employees need to adapt themselves to it. From the very beginning of the implementation employees will have to adopt new attitudes to help deliver the customer experience properly to customers. Organizations need to make sure that their employees are provided with sufficient training to ensure that they handle this aspect of the customer experience adequately and efficiently.

Using Skilled Managers

Organizations need to make sure that they use the most highly skilled and experienced group of professionals possible. CRM aspects are complex and what is needed most is a team that has CRM expertise and business knowledge. The team should be adequately trained and sufficiently equipped both intellectually and technologically to carry out the CRM implementation successfully.

Choose the Right Methodology

Decide whether to use the classical or modern methodology bearing in mind that ease of usage, cost effectiveness and efficiency need to be gained. This is an important step in the CRM implementation as it has a bearing on the entire process.

Ease of Usage

The entire objectives of the CRM process are hampered if the CRM choice is difficult to use. It is highly essential to ensure that the system speaks of ease of usage and the ability to be easily customizable. Employees implementing CRM and forming a part of the CRM process range from the mediocre level right to management and to the employee at the very forefront. It is imperative that the business ensure that the CRM software chosen is easy to use and implement not only by a few employees but by everyone using the system. This is a step that needs to be taken at the time of choosing the CRM technology.

CRM FOR LARGE INDUSTRIES

CRM is not just for big players. Large corporates are not the only ones who stand to benefit from CRM implementation in effect it is harder for large corporates as they will undoubtedly encounter more difficulties when compared to smaller ones. Apart from the huge investment involved in the installation itself there are also additional costs. Training of employees, integration of the various departments, phased implementation -all result in tremendous costs for the organization.

CRM helps large corporates in increasing their up selling and cross selling opportunities and enables a company to do it more effectively and efficiently. CRM enables sales staff to deal better with their customers through the bettering of the sales process and ultimately helps them to close sales deals faster. It manages to simplify the marketing and sales processes in an organization.

CRM IN SMALL INDUSTRIES

CRM application tends more to profit small industries than large ones .This occurs because re-engineering the front office is a crucial part of CRM. This part of CRM becomes more difficult as the number of people, departments and businesses involved grow.

Sometimes more money than is required gets put in on account of insufficient CRM knowledge on the part of the entrepreneur. With small industries, since resources are less, optimization of resources should be encouraged. CRM is currently evolving into something it wasn’t a few years ago. It has become a strategy that works towards increasing the relationship that the customer has with the organization

The Benefits of CRM to Industries Worldwide are

? Call center efficiency increases

? Marketing campaigns are made easier

? Account information

? Overall revenue increases

? Cost reduction is achieved

? Better customer service is achieved

? Organizations can gain the competitive edge

? Organizations can concentrate more on production

? Constant supply of vital customer data

? Customers receive satisfaction

? Routine tasks are easier to handle

? Marketing and support expenses are reduced

? Sales teams can be effectively monitored

? Teamwork within the organization is achieved

? Communication channels are improved

? Customers have detailed profiles assigned to them

? Employees have access to customer details more easily

? New selling opportunities can be discovered

? Companies are enabled to be aware of customer needs and are able to react to them in the right manner

? CRM achieves an integrated internal business system

? CRM imposes welcome a much needed discipline within an organization

? CRM technology goes a long way in benefiting the organization itself

? Companies have easy access to purchase histories

? Automation of routine tasks becomes possible

? Companies can monitor their performances regularly.

THE LEADERS IN THE FIELD OF CRM INCLUDE

Oracle

Oracle is the leader in the CRM field. The company currently offers 50 CRM applications that are able to provide for all the customer service requirements of small, medium and large industries. Oracle provides CRM applications that aid the organization through improved business processes. In addition to that the functionality it offers is just as important. It manages to provide excellent support for all departments within the organization like customer support, added services and additional

SAP

SAP was established in 1972 and is now a leader in the provision of business solutions for all types of industries. It is a CRM software vendor that caters to businesses worldwide and currently serves more than 32,000 customers. SAP has a presence in more than 50 countries. It is the world’s largest business software company. It is the world’s third-largest independent software provider overall and employs more than 35,000 people.

They are able to provide excellent customer service and support. It boasts of having the Knowledge, Experience, and Technology that is needed to optimize Business efficiency. It manages to provide a range of solutions that cater to every aspect of the business.

The Benefits from SAP are:

? Better efficiency

? Cost reduction

? Better performance

? Adaptability to business environment

Overall Growth

One advantage SAP has is that SAP Ventures invests in new companies that are interested in finding new technologies. This enables them to stay ahead in the rat race.

SAP offers several solutions for Customer Relationship Management and is able to deliver customer-centric solutions that revolve around each customer. It helps the organization to support the various departments like marketing, sales, and service and provides them with good analytics as well as excellent interaction capabilities.

SAP CRM supports the customer-related processes and deals with all customer-related activities across all departments. It sources and gathers together all customer data in the organization in order to facilitate better decisions. It enables company’s address their business needs adequately, manages to achieve the business objectives and reaps the required return on investment.

Some of the well known companies whose CRM implementation has been successful include: Canon (Japan), AMD,Hitachi, Nokia ,Engage,Pepsi Americas, Sovereign Bank, HP

CONCLUSION

Effective CRM results in increased and better customer service from employees of an organization. Another advantage is the internal efficiency that is created within the organization. The flexibility and customization trait of CRM enables a reduction in the total case volume. Observing an excellent response from the organization , the rapport established with them and the interest paid to their suggestions and ideas, boosts customer interest in the organization itself along with the products and services it carries , with the net result being a hike in customer retention and customer loyalty. Thus CRM services are vital to an organization and are considered as a perquisite that needs to be adopted and well developed for betterment of an organization.