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eCRM: Select and manage the most valuable customer relationships eCRM customer relationship

What is Customer Relationship Management (CRM)?

Customer is not new, Relations are as old as a buyer and a seller and so is not Management. The concepts of CRM have been there since the concept of buying and selling came into being. Then, what is creating waves in today's CRM industry? Is that small electronic 'e' changing the trend?

CRM is considered to be a software tool and a technology solution in this Information Technology industry. In fact CRM is a strategy towards achieving a holistic view of any partner engagement. CRM, which is a combination of marketing and business processes, is the basic understanding of customers and how organizations measure them. The mantra behind CRM is catering to customized needs "centrally".

As defined by "gurus" of CRM - Customer Relationship Management is a business strategy to select and manage the most valuable customer relationships. CRM requires customer-centric business philosophy and culture to support effective marketing, sales and service processes. CRM applications can enable effective customer relationship management, provided that an enterprise has the right leadership, strategy and culture.

Why CRM ?

Keeping in mind the pace at which technology is changing today, any company which is a step ahead of others because of some web product or service will not be able to hold on to that advantage for long. Key to stability in today's dynamic marketplace is forging long-term relationships with the customers.

Customers can be divided into three zones:

  1. Zone of defection where customers are extremely hostile and have the lowest level of satisfaction.

  2. Zone of indifference where customers are not sure. They have a medium level of satisfaction and loyalty towards the company.

  3. The third level of customers are in the zone of affection described as "Apostles". CRM focuses on bringing customers from level 1 to level 3 and retaining apostle customers.

Customer demands for customization are increasing with every passing day. This has made companies shift their focus from "mass production" to "mass customization". The present scenario of companies using "poorly implemented" multi channel strategies for living up to the expectations of customers is bringing both customer satisfaction and customer loyalty down the ladder.


e-Customer Relationship Management

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