Client Relationship Management (CRM) means how well to manage your client. It is done to create and sustain long-term, profitable client relationships. CRM is for understanding customers who use quantitative and qualitative research, in segmenting them and positioning them for each segment, based on their opportunities and contribution to profits. It is necessary in order to retain old customers, acquire new customers and improve the stand from the existing client base. The reason for the increase in interest to CRM is because, traditional approach of making one-time sales is being replaced with making long-term commitments to customers. This new approach puts forward the need to have a better customer/client relationship management (CRM) strategy in the organisation. It is done for creating, communicating and delivering value to customers and also for managing customer relationships in ways that benefit the organization and its stakeholders. It is a broad strategy of acquiring, retaining and partnering with carefully targeted customers to augment long-term relationships with them.
Client relationship and satisfaction is a critical goal of every business initiative. The ground work for a successful business lay in is for a successful client relationship management. Only if the client is satisfied with the performance of the company will there be a professional and personal needs that can be addressed to by the company. Client’s not only pay attention on what the company does, but also on how well it does the work. Therefore, client’s perception of service quality needs to be properly managed.
Why CRM is beneficial to an Organization?
- It helps the company to shape and maintain a loyal customer base.
- If the customer relation is good and satisfactory, then the volume of goods sold can be high as we can satisfy their needs and have a long relation due to the quality of service.
- It is less expensive in serving those customers because of their Increasing confidence and lesser doubts or questions about the product.
- It can alternate to lesser promotional campaigns in order to attract those customers.
- Also relishes the benefit of retaining its employees if it has a stable base of satisfied customers.
Customers would definitely want to remain loyal to a firm because they would enjoy benefits from such long-term association. This will happen because of the feeling of trust and confidence in the firm’s services along with a sense of a knowing the product. Moreover, in a long-term customer-firm relationship may actually become a part of the customer’s social support system.
A CRM initiative can work only when a business philosophy that aligns company activities around customer needs. The level of professionalism, listening skills, responsiveness, reliability, etc should become a significant part of the client relationship management. CRM overviews all the methods and technologies used by the companies to manage their relationship with their clients.
The process of CRM includes: –
- Promoting a client-oriented philosophy
- Adopting client-based measures
- Developing end-to-end processes to serve the clients
- Providing successful client support
- Handling client complaints
- Identifying the factors important to clients
Certainty of the product, is the key challenge that an organisation needs to overcome. In order to have a successful client relationship management, Product certainty is very important. In other words, an organisation needs to become client-centric, because it will allow for a consistent interaction with clients and improving the relationship, but also the understands them better making the business even wider with its most important constituency, ‘The Clients’.