FOREWARD
FADA has always felt the need of providing inputs to its dealers on all the relevant topics. This is done through Journals, News letters, press etc. However, there are certain subjects which are of prime importance, particularly in the present scenario. One of them is Customer Relationship Management. CRM has become a buzz word for every business house and consultants. This is an exercise briefing our dealership members on the basics of CRM. While there are various articles, books on CRM, I am sure, this small booklet would be found quite handy and useful for our dealers and shall enable to improve the bottom line.
I would welcome suggestions from members on the book and other relevant subjects with a desire to provide the best through such booklets.
KAILASH GUPTA
President – FADA
AN APPROACH TO CUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER RELATIONSHIP MANAGEMENT
CONCEPT :
Customer relationship management or CRM as is better known is a hot word today. Simply stated, it is the liaison between the product and the customer. It promises a better understanding of customers, strengthens customer loyalty and provides what customer wants and how they want it. It is a concept encourage repeat buying from regular and frequent consumers. It is very old concept, though was not very prominent concept, to lure customers by offering services to stick to their product. Brand loyalty had almost become a passe in the last 2 - 3 decades but now again concepts like CRM are trying to bring it back into the picture.
ABOUT CRM :
What is CRM?
What is the goal of CRM?
That sounds rosy. How does it happen?
Are there any indications of the need for a CRM project?
How long will it take to get CRM in place?
How much does CRM cost?
What are some examples of the types of data CRM projects should be collecting?
What are the keys to successful CRM implantation?
Which division should run the CRM project?
What causes CRM projects to fail?
What industries are leading the way in CRM implementations?
Which industry is behind the curve?
PASSIVE TO ACTIVE :
The transformation of the role of customer from that of passive audience to active players in co-creating value has given a new dimension to CRM. The reason for this transformation is largely due to wide coverage of Internet, consumers are increasingly engaged in active and explicit dialogue with companies.
COLLABORATORS :
Moreover consumers are becoming business collaborators who have as much to contribute to value creation as companies themselves do.
RELATIONSHIP PROCESS :
CRM is a relationship process which a company can cultivate with its customer groups / segments in such a ,way that it would benefit both the customer and the company is a process of acquiring, retaining and partnering with selective customers to create superior value for the company and the end user.
360-DEGREE TURN :
It is about the management of technology, processes, information resources and people needed to create an environment that allows a business to take a 360 - degree view of its customers.
MISCONCEPTIONS :
The key to implementing a successful CRM initiative is to first understand exactly what CRM is. Often, business begin with an initial understanding, right or wrong, that motivates them to pursue a CRM initiative. Several misconceptions emerge once they attempt to apply CRM to their business. The most common is believing that CRM is the new cure-all for customer management evils that, if implemented, will result in almost immediate benefit. Unfortunately, CRM by itself is no guarantee of customer retention.
Companies at the forefront of CRM think of it as an integrated business strategy that places the customer at the center of a business's consciousness. CRM provides a holistic view of the customer across all of an organisation's products and channels.
BUSINESS GOALS :
At its best, CRM should address the following business goals :
| ▪ |
Increased customer acquisition and retention, as well as greater loyalty |
| ▪ |
Expansion of profitable, long-lasting customer relationships |
| ▪ |
Delivery of a consistent, relevant, high quality customer experience |
| ▪ |
Continuous learning about customers (both business and consumer) and communication of that knowledge across the organisation. |
| ▪ |
Delivery of the right products and services tailored to meet customer's needs |
| ▪ |
Increased customer equity |
| ▪ |
Improved cost management |
PERFORMANCE METRICS :
Less than 10 percent of companies have a single, integrated view of the customer which is a prerequisite for winning customer loyalty. With this in mind, performance metrics should include:
| ▪ |
Customer profitability |
| ▪ |
Customer loyalty |
| ▪ |
Customer lifetime value |
| ▪ |
Return of CRM investment |
Therefore, CRM is about the transformation of the entire enterprise and how it views and conducts business with its customers.
After all, what hope is there for the future of a dealership if it treats customers of 10 years the same as brand new ones.
|
| |
|
