PRE-REQUISITES OF CRM :

a.

A willingness from both the company and the customer to stay committed to the relationship which is based on mutual benefits. This is required because organisational process changes may have to be initiated in both organisations and hence top management has to be convinced about CRM in both the companies (in case of business-to-business marketing context).

 
NON­TRANSACTIONAL ORIENTATION :

b.

A 'non-transactional' orientation on the part of the marketer. A transaction is a 'one-off' interaction and hence CRM involves a combination of strategies which build up the relationship between the marketer and customer over a period of time (though transaction-based loyalty programs could be formulated).

 
WILLINGNESS :

c.	A willingness on the part of the marketer to invest in an infrastructure that can implement and operationalise CRM. The infrastructure could include web-based hardware / software which could effectively harness the advantages of CRM.

 
NOT A CALL CENTRE :

CRM should not be linked to just opening a call centre or contacting customers via mail or having a discount scheme for regular customers rather it is well planned strategy engulfing the objectives of the organisation and setting short term targets to achieve that objective.

REACT :

Here is a new twist on an old Customer Management philosophy, REACT. This stands of Responsiveness, Empowerment, Anticipation, Consideration, and Truthfulness.

Responsiveness :

Managing the element of time is critical. Some of the biggest frustrations come not from what you are saying to your customers but rather what you are not saying. Examples include leaving people on hold too long and not returning phone calls. The best thing that you can do is to manage expectations up front. If you can't return a call for 3 days then tell them that. If you think someone will be left on hold for an unreasonable amount of time then offer to call the back when you can give his or her call the attention it deserves. Watch for trends in your business so that you can staff for this appropriately. If your customers are working 24 hours a day, then you probably have to as well.

Empowerment :

Make sure that the representatives you have dealing with your customers are empowered to handle the issues that are being presented to them. If you don't trust the people who work for you then get new people. A customer should have to go through layers of your organisation to get an issue resolved. Empowering people makes them more effective and helps your organisation grow.

Anticipation :

Know what your customers want before they do. Look at industry trends and study best practices. Signals and economic indicators such as large mergers and changes in trade regulations could be affecting your customers. Continually look at how this is impacting your customers and then update your staff regularly so that they are ready to deal with these new issues. Your customers will notice that your are on the ball and appreciate that you have a clear understanding of where they are at.

Consideration :

Remember that the people that you are dealing with are literally your bread and butter. This should never be an adversarial relationship, These are people who mean everything to your bottom line and the best way to keep them happy is quite simply to be nice. Staff should be trained about using the correct tone of voice and learn a multitude of non-threatening phrases and answers. Make sure that your customers know that you are on their side and that you really care.

Truthfulness :

There is nothing more damaging to a company than lies. If you lie to a customer once, you have lost them. If you are having supply issues tell them. If half of your staff is out with the flu and the only temp agency in town just folded, call your customers before they call you. Let them know where you are at and show them that you have a plan to get back on track. Bottom line, people may not like it - but they will respect you for telling the truth.

BUSINESS NOT A TECHNOLOGY :

Customer Relationship Management is a business, not a technology, solution. It is a logical extension of your company's image and culture. Your image can be a powerful one if based on sound principles of human interaction and common sense. You must have a clear vision of the objectives you hope to achieve and that vision must be embraced throughout your organisation. A great deal of thought and planning must be done on the front end to effectively lead and manage changes to your customer management model. Most of all the company as a whole needs to "buy in" to the concept.

NEED OF CRM :

Lets analyse whats the need of CRM in todays scenario:

a.	Opening of the Indian market or rather we can say globalisation gave our customers a feel of the international market. Customers have an access to wider range of products.
b.	Fast changing technology and advent of Internet set up an interactive platform between the marketer and the customer.
c.	Increased competition gave the need to the marketers to carve a niche for themselves by offering something unique.
d.	Change in the role of customer. Customers do business on their own terms, whenever, however, wherever they want. So there is a need to mould ourselves according to customers needs.
e.	Changes in the mode of communication – by e-mail, Internet, phone, fax, WAP or face to face. Customers can participate in the development of products and services.

 
 

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