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SI+ Customer Relationship Management
CRM thoughts
Why pay for a standalone CRM program if you can get all the features in a fully integrated accounting software package.
Definition Sample DefinitionsCustomer focus frameworkKey benefits and how you can use CRM includesGoals to determine CRM success Info we need Set goals based first on leading indicators such as.
Every decision is made after asking the question,
“What difference will this decision make for the customer?”
CRM definition:
Customer relationship management (CRM) software enables sales and customer service professionals to track critical information about clients and prospects in order to close more deals and to provide better service. Advanced CRM software tools interface with communication and billing tools to provide a comprehensive review of client activity.
CRM typically means something different for every company, depending on who its customers are and how it delivers products and services to meet customer needs. Reaching a common understanding of what customer relationships management means to the company and how it can positively impact the bottom line is one of the first steps in developing a CRM program.
A company don’t have to have a single definition of CRM for the entire company. The definition should detail how the organisation expects CRM to add value to the bottom line.
Research shows that acquiring new customers can cost four to five times as much as reselling to existing customers
“Internal CRM” needs should focus on the information needs of employees/ sales associates and application of customer data.
Sample definitions
The company’s long-term CRM vision is to “provide each customer with an optimal customer experience. The company’s goal is to use segmentation strategies to target each customer group’s needs. The company will offer loyalty programs and different products based on customer histories and preferences.
2nd Definition
The core goal of Smart-It business software CRM is to ensure a great customer experience, so you can secure and build long term, profitable relationships. Each time you interact with a customer, you have an opportunity to learn important information.
The financial management system tracks the interactions between sales, service employees and the customers creating a complete 360-degree customer view.
Customer Focus Framework
How a contact with a prospect turns into the start of a relationship with a customer. The framework then allows you to develop a holistic view of the entire customer lifecycle and track the customer from acquisition through delivery (of product or service) and from customer support all the way through retention and referral.
1 Customer Identification.
Example different business segments)
2 Customer Differentiation.
Based on knowledge about the prospect and her needs and preferences, the prospect is automatically differentiated into one of several buckets or customer segments. Ex. Electronic interactions are preferred above paper etc.)
3 Customised Interaction
Personal information about their preferences and habits and you in turn agree to use that information in all interactions with the customer in order to serve them better
4 Customer Acquisition
5 Value Delivery Revenues
You must remember that as you deliver your product or service, in exchange for revenues, it is most important to remain focused on value delivered to the customer. Remember To be sure, value is an evasive term, but what is important is that it is always in the eyes of the customer.
6 Customer Service and Satisfaction (Customer service includes all activities that are above and beyond the direct product or service that is sold.)
7 Customer Retention
Building customer loyalty implies repeat customers that come back to buy your products or services,
and keep coming back. Loyal customers expect to be identified and treated differently, and will provide you with information about their preferences in return. They will try new products, offer suggestions for new products and services. They will trust you and tell their friends about your products and services. Classic examples of loyalty programs include Frequent Flyer Programs at Airlines,
8 Customer Referrals
Referrals can be one of the most effective means of marketing to prospective customers, and as such it is important to recognize the referral component of CLV – Customer Lifetime Value. In other words,
even if a customer is not directly responsible for a lot of revenues, s/he may be valuable because of
the referrals s/he provides
Key benefits and how you can use CRM include:
Opportunity managementAccount managementQuote generationCustomer care trackingIncreasing profitabilityIncreasing revenues from existing customersGetting more income for your marketing expensesGetting better customer satisfaction ratingsDeveloping a consistent understanding of who your customer is.Understanding Customer Lifetime ValueFiguring out your Most Valuable CustomersGenerating and managing a continuous customer feedback loop.Streamline general workflow of communications with customersCommunications with customersLead Management – new leads (anyone that has contacted your company)TelemarketingCross sellingUp sellingFrequency and number of live sales callsWhat percentage of total sales are sold this way. Same for e-mail and electronic commerce, Web-site, telephone etc. Goals and best metrics to determine CRM success.
Start with a strategy for collecting, mining, and leveraging valuable customer data.
Info we need from the CRM program:Contact information such as address, email etc.Purchase history, including amount spent, type of merchandise, seasonality, and method of payment. Products ordered per item per groupCustomer preferences, such as colours, fabrics, brands, method of communication..Who are your customers? Better-defined segments that receive more targeted information provide a rich economic prize. Where are they?Where do they need you to be? (where do they want to shop?)What do they need?Warranty recordsCoupon redemption and rebate formsRepairs and service recordsRefunds, invoicing disputes, inquiries, unresolved complaintsRank customers byMoney valueReferrals made by a customerLikelihood and magnitude of volume growth or increased profitsPredictors of loyaltyCreditworthinessAccounts payable – the speed at which a customer paysCollaborative value- willingness to communicate/participate/ respond to surveys. EtcDifferentiate them by their needs.
Business customers, consumers, dealers, distributors.National or strategic accounts.Large enterprise customersMedium or small business customersGeographic regionsHeavy users versus infrequent users.Purchase frequency. When is the next purchase due. Did it occur.Complete history of each contact made with clientTrack responses to each promotion effortUse transaction history or other data elements to eliminate customers or prospects from selected promotionsIntegration with e-mail templatesAutomated follow-up remindersCustomer value projectionsTime and efficiency trackingReferral and source tracking Customer interaction centre Example of info to display when a customer phones in.
Overall value to us (1-5)
Longevity
Number of complaints
Number of referrals
Service interruptions
Set goals based first on leading indicators such as.
1.0 Customer satisfaction, customer retention and profitability.
Customer satisfaction as a leading impact indicator of CRM impact and success. Customer satisfaction improvements tend to reflect integrated service platforms, better-informed marketing, proactive service delivery and positive customer-focused program implementation. Customer satisfaction levels must be measured by conducting regular surveys
Retention and profit measures are more firmly anchored to economic performance
Top CRM programs realize that if they can develop customers who are more profitable, overall company profitability will accelerate. loyal customers serve as a critical marketing tool through referrals.
2.0 Measuring complaint levels.3.0 Customer growth and defection.
Growth factors can also include factors such as cross-selling or lifetime customer value.
Growth in new customers
Customer Specific profitability
Customer referral rates
Measure performance and communicate results to ensure accountability.
Give feedback on a weekly basis, comprising of key, directional company and customer statistics. Each department and level of management will have different needs.
What customer data should make it all the way to the retail floor? How can you ensure that valuable customer data gets into the hands of key sales persons at the point of sale.
A good customer relationship management (CRM) program must integrate with all your accounting (book keeping) modules such as quotes, job cards, suppliers, orders, purchases, return to supplier, workshop, general ledger, email, SMS accounts receivable etc.
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