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CRM Management Philosophy(2)

Customer care is the center of CRM

At the beginning, the enterprises provide customers with after-sales service as a support for their specific products. The reason is that this part of the products requires regular repairs and maintenance, for example, household appliances, computer products, cars and so on. This customer service is largely considered to be an integral part of the product itself by the customers. If there is no after-sales service, the customer simply will not buy company products. Those who have done good after-sales service, the company’s sales of its market are on an upward trend. On the contrary, those who do not pay attention to after-sales service, the company sales of its market are at a disadvantage.

Customer care is throughout all aspects of marketing. Customer Care includes the following areas: customer service (including providing customers with product information and services recommendations, etc.), product quality (conform to relevant standards, suitable for customers to use and ensure safe and reliable), quality of service (refer to the customers experience during the process of contact with customers), after-sales service (including after-sales inquiries and complaints, as well as maintenance and repair).

In all marketing variables, attention to customer care should be focused on the different stages of the transaction, creating a friendly, motivating and efficient atmosphere. The most four significant variable of the customer care of is the actual marketing: products and services (the heart of customer care), communication, sales incentives and public relations. CRM software for customer care module fully bring the relevant marketing variables into it .It makes the customer care as very abstract issues measured through a series of relevant indicators , to facilitate enterprises timely adjustment of strategies for customer care and then enable customers to produce more of the companies high loyalty.

The purpose of customer care is to enhance customer satisfaction and loyalty

Some very authoritative international research institutions, after conduct in-depth investigation and study, draw such conclusions, ” increasing customer satisfaction by five percentage points, the result is double the profit of enterprises”; “the willingness of a very satisfactory customers to buy is six times higher than a customer satisfaction “;” 2 / 3 customers leaves the supplier because the supplier of their care is not enough “;” 93% of the company CEO think that the customer relationship management is the most important factors of business success and more competitive “.

As the company’s products having the life cycle, the customer is also a life-cycle. The longer of the maintain cycle of clients, the higher of the relative return on investment, thus brings enterprises of greater profit. Thus, it is very important to retain customers. What kind of customer retention and how to retain customers are an important issue putted forward by enterprises.

Since tens of thousands of corporate customers, how much do the enterprises know about their business customers? Do not understand the customers cannot distinguish between customers. What measures should be taken to segment customers, which form of market activity and which extent of care to take can be able to continue to cultivate customer satisfaction. It is a challenge to traditional customer relationship management.

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CRM Management Philosophy(1)

CRM (Customer Relationship Management) entered china accompanied by the tide of the Internet and e-commerce. Oracle has started the work of market education and popularization for customer relationship management (CRM) since two years ago in China.

The earliest country developed of Customer Relationship Management is the United States. In the early 1980, there has been “contact management” to specially collect all the information about the contact between customer and the company. To 1990 it has evolved into customer care which includes the analysis of call center support data.

From a management science point of view, customer relationship management (CRM) is from the Marketing Theory; from the perspective of solution, customer relationship management (CRM) makes scientific management concepts of Marketing Theory integrated on software by the means of information technology .It is popularization and applied in the global in large-scale.

In the CRM, the customer is an important asset of enterprises.

In the traditional management concepts and the existing financial system, only the plant, equipment, cash, stocks, bonds and other are the asset. With the development of technology, technology and talent have been as a company’s assets. The technology and talent have been paid much attention. However, this concept of division of assets is a closed loop, rather than open-ended. Whether the traditional theory of fixed assets and current assets, or the new emerging theory of talent and technology assets are part of the conditions for enterprises to realize the value rather than full conditions .The missing part of that is the final stage of the product realization value which is also the most important stage, in which the dominant player is the customer.

In circumstances of the changes of product-centric business model to a customer-centric business model, many companies began to regard customers as its key assets. They continued to take a variety of ways to bring into effect care for customers in order to enhance customer satisfaction and loyalty to their companies. We see that around the world more and more companies make such a concept, for example “think about what customers want “, “Customer is God”, ” Customer benefits are supreme” “Customers are always right” and so on.

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What is CRM?

With a global surplus of products and product homogeneity, the dominant factor in the development of enterprises shifts from product value to customer demand. And the customers become the company’s core resources. Customer Relationship refers to information imputation which occurs and develops around the customer life cycle. The core of the customer relationship management is the customer value management. And customer value will be divided into de facto value, potential value and model value. Through “one to one” marketing principles, different value of personalized customer needs will be meted with. It will enhance customer loyalty and retention to achieve sustained contribution to customer value, resulting in enhancing corporate profitability in an overall.

CRM is namely as customer relationship management. This concept was originally proposed by the Gartner Group, and recently, is in the popular in the enterprise e-commerce. The main idea of CRM is depth analysis of customer detailed information to enhance customer satisfaction, thereby enhancing the competitiveness of enterprises. It mainly includes the following main aspects (referred to as 7P):

Customer Profile Analysis (Profiling) including the client’s level of risk, hobbies, habits, etc.;

Customer Loyalty Analysis (Persistency) means the customer a product or a commercial organization loyal extent, persistence, movement, etc.;

Customer profitability analysis (Profitability) refer to different customers consume the products the edge of the profit, total profit, net profit, etc.;

Customer Performance Analysis (Performance) refer to different customers according to consumer product categories, channels, sales outlets and other indicators of the sales division;

Customer future analysis (Prospecting), including customer number, category, etc. The future development trend of the means to win customers, etc.;

Customer product analysis (Product), including product design, relevance, supply chain, etc.;

Customer Promotion Analysis (Promotion), including advertising, publicity, promotions management.

On different occasions, CRM may be a jargon of management, may be a software system. We usually refer CRM to the computers automation software system of above analysis process. It involves sales, marketing, customer service, and support for applications software. Its goal is to reduce the sales cycle and marketing costs, increase revenue, expand their business needed to find new markets and channels and enhance customer value, satisfaction, profitability and loyalty.

After the introduction of e-commerce in traditional enterprises, enterprises focus has transferred from improving the internal efficiency to respect external customers. The CRM philosophy is based on respect for customers, requiring a complete understanding of the whole customer life cycle, providing a unified platform for communicating with customers, improving the efficiency of contacts between staff and customer and improving customer feedback rate. A successful customer relationship management system should at least include the following functions: by phone, fax, Internet, mobile communication tools, e-mail and many other channels to communicate with customers; to make employees a comprehensive understanding of customer relationships, doing transactions according to customer demand ,recording the attained customer information ;to make customer information sharing right inside the enterprises ;to programme and evaluate of marketing planning; to track on a variety of sales activities ; through a large number of dynamic accumulation of information to comprehensive analyze marketing and sales.

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