Question

In Chapter 12/12S the book mentions CRM in depth. What implications does a company's relationship management with current customers have on earning new customers? Give an example

Answer 1

Following are the implications that the Customer Relationship Management has with current customers that can in turn impact earning new customers:

• An organization that puts its employees in conducive work environment ends up delivering better customer experiences to the customers. Delighted customers may choose to come back to the Organization to avail its services again and again. This will in turn give a boost to the profits and earnings of such Organization without really having to focus upon its product line. The product lines falls in synch with the Organization's goals and strategies due to the working of content employees. Delighted current customers further help the Organization in getting more customers by spreading the good word of the Organization around, in their community.
• CRM provides a detail data about the customer's needs and preferences, depending upon their age, gender and location, etc. Such an information helps an Organization to understand in those customers indeed are profitable or not and if not, what best can be done to convert them as content customers of the Organization.
• The Account manager's role is to segment the customers as per the preferences or location or upon various other criteria which may in turn help the Management to offer product or services matching to such segment of customers. Thus helping to differentiate their products as well as helps in concentrating upon key business lines depending upon the customer segmentation.
• CRM also helps in tapping potential consumers and to convert them as the customers of the Organization. This is done by sending the Sales representatives on to the fields and by undertaking surveys that help decide how to help converting them as customers.
• If employees of the Organization are happy and content, then CRM becomes a reasonable and cost-effective option since it requires less manual and paper work. Technologies available to work upon CRM are very easily available at a reasonable cost to be adopted by Organizations to achieve desire customer-oriented results.
• The productivity aspect of CRM model is given a great boost with the fact that all CRM data could be centralized and available by the concerned leaders all across the Organization at just a go.
• Customer satisfaction increases thereby leading to better earnings as these customers become more loyal towards the Organization's product and in most cases, also refer to others to avail the same as mentioned earlier.