Wednesday, September 29, 2010

How Important is Client Relationship Management to Your Business?

How Important is Client Relationship Management to Your Business?


Client Relationship Management commonly known as CRM is not just a technology but rather a comprehensive, customer-centric approach to an organization's philosophy of dealing with its clients. CRM is a combination of policies, processes, and strategies implemented by an organization to enhance its customer interactions and provide a means to track customer information. It involves the use of technology in attracting prospective clients, while strengthening bonds with existing ones.
CRM is a combination of a qualitative approach - (human interaction) and a quantitative approach - (software application), and plays an intricate role in marketing plan development.
A look at the qualitative approach:
• 80:20 rule - The top 20% of an organization's clients should have a customized CRM approach.
• Relationship strategy - Determine what client opportunities you should pursue.
• Client leadership - Become a trusted advisor to the client and a recognized thought leader within the client organization.
• Ambassadorship - Represent the entire firm's capabilities, not just your area of expertise.
• Quality Assurance - Ensure high quality work at all times! Managing: pricing, contracting, negotiating and ensuring firm profit standards are being met.
A look at the quantitative approach - (the use of CRM software applications):
• Operational CRM: Operational CRM processes customer data for a variety of purposes - (eg. managing campaigns, enterprise marketing automation, sales force automation, sales management system).
• Analytical CRM: Analytical CRM analyzes customer data for a variety of purposes - (eg. designing and executing campaigns, analyzing customer behavior and creating a management information system).
• Sales Intelligence CRM: Sales Intelligence CRM is a direct sales tool - (eg. cross-selling / up-selling, sales performance, customer trends and customer margins).
• Social CRM: The integration of social media platforms - (eg. LinkedIn, Twitter, Facebook, Blogs, etc.) into the CRM system application. *Note: OPC recommends "Social CRM" should be monitored for real-time marketplace feedback and trends.
The objectives of a CRM strategy must consider a company's mission, vision and its values. Information gained through CRM initiatives can support the development of the marketing plan strategy and ultimately increase the organization's knowledge in areas such as: (customer segmenting, customer retention and improve product/service offerings).