Key Questions about CRM
What does CRM stand for?
CRM stands for Customer Relationship Management.
Why are customers considered a valuable business resource, even after they have paid their bill?
Customers are considered valuable because their loyalty brings more revenue to the company. Also, happy customers tell people about their pleasant experiences.
What is “customer centric” CRM ?
Customer centric is placing the wants and needs of the customer as the central focus of all business practices within a firm.
In a customer life cycle context, what does each of these terms mean?
A business relies on CRM software to help it acquire new customers by doing a superior job of contact management, sales prospecting, selling, direct marketing, and fulfillment. Web-enabled CRM account management and customer service and support tools help enhance the customer’s experience by supporting superior service from a responsive networked team of sales and service specialists and business partners. CRM analytical software and databases help a company proactively identify and reward its most loyal and profitable customers to retain and expand their business through targeted marketing and relationship marketing programs.
CRM software helps sales, marketing, and service professionals capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of the customers.
CRM systems help marketing professionals accomplish direct marketing campaigns by automating such tasks as qualifying leads for targeted marketing, and scheduling and tracking direct marketing mailings.
A CRM system provides service reps with software tools and real-time access to the common customer database shared by sales and marketing professionals.
Dissatisfied customers tell 8 to 10 people about their experiences. A company can boost profits by 85% by increasing its annual retention by only 5%. 70% of customers will do business with the company again if it quickly takes care of the service problem.
Failure Rate: 50% of CRMS
The biggest reason that CRMs fail is that managers will install a CRM system without knowing exactly how to use it, or training the employees on how to use it. The manager expects the CRM to solve the problem on its own, which is cannot do. Businesses need to understand how the CRM works and prepare for it.