CRM

  • Long-term value through CRM- CRM helps the company increase loyalty and engagement of customer base, which is an important factor for company to survive. That is why the company focuses on investment of CRM.
  • Goal of CRM- The goals of CRM are to find and attract new clients, retain those the company already has, entice former clients back, and reduce the costs of marketing and client services.
  • Integrated approach to CRM- To effectively implement CRM, a company must be able to measure results, access these results, extract knowledge from the results, develop insights on how to improve the value of the customer relationship from the results, and be able to implement these insights through existing and new technology. If any of these steps are missing, CRM will not be effective. For example a company can measure thousands of statistics, but if the information is not easily accessible, it is useless. Likewise, a database without tools to extract the relevant information is useless.
  • Objective of CRM pyramid- The objective of CRM is to move customers up the pyramid. Prospects are first brought in and the goal is to move them up the pyramid to get them to become profitable customers. CRM must then keep the profitable customers at this level.
  • Ways to change purchasing power-
  • CRM is not statistics, it is...- CRM must also have an organization that both gathers and uses the information appropriately
  • Social networking benefits and tradeoffs- There are many benefits and tradeoffs associated with concern to marketing and social networking sites. An obvious benefit is the ability to understand customers and their behaviors better. Social networks get information of customers not attainable without tons of research on any other forums. They also offer a place to reach customers as well. A tradeoff is that you have to trust in what is written on these sites. People have a tendency to embellish often when on these sites; so that information gathered can often be incorrect. Another tradeoff is that the use of these sites for marketing information can be looked at as an unethical practice.
  • Ways rewards affect customers differently-
    • Good way: The customer gets a feeling of satisfaction that the company cares about him and has taken notice of his likes and dislikes
    • Bad way: The customer is unhappy because the company has violated his/her privacy
    • This shows that although companies can spend all the money to gather data, retrieve it, and analyze it but its the presentation that will either make or break the customer interaction. There is a fine between the two results. Unfortunately, this is no established model that will guarantee the success. So our only option is trial and error.
  • You don't want to think 1 to 1 because that was the traditional model. Now social CRM has enabled one-to-many interactions. It enables customer interaction over social media along with the ability to respond to the concerns. There are some key advantages to this model
    • It produces content that start more conversations
    • It create venues for organization to grow
    • It has the ability to monitor conversations and allow meaningful interaction
    • It reduces support cost because the selected customers will benefit from the collected wisdom of community up to date
  • Social CRM youtube video- http://www.youtube.com/watch?v=j1ozGiXSpI0
  • History or intention?- Instead of capturing an accurate history of touch-points and optimizing the customers' ability into database for future reference, CRM system should become a way to update understanding of customers' needs and behaviors.

Posted by: Robert Kunke, Victor Rattanavong, Tim Christian and Kate Truong