Customer relationship management

June 14, 2018 Management

Importance of Customer Relationship Management Helps to handle with customer problems and concerns. Higher output in sales. Improves retention and loyalty of customers result in increase in customer base. Increase in customer satisfaction by fulfilling their needs and wants. Gathers a lot of data about the customers. Helps the management in planning on the upcoming course of the organization. Results in more satisfied customers, a more cost-effective business. Definitions Customer value is the key to company’s growth. Thus, it is better for the organization to satisfy customer demanding needs.

Considering the customer’s needs will result in product growth into better direction and amplify success. Customer needs are the difficulties that customers aim to solve with the purchase of a good or service. Types of customer needs Direct needs (threshold attributes) – customers have no problem stating those needs they are concerned about. These are the needs they expect to be present in a product. Latent needs- these are the needs that customers do not directly express without analyzing. Constant needs (performance attributes) – when the product is used, this need is always there.

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They are essential to the task of the product and always there; although they are not necessary, having known, it increases the customer’s satisfaction of the product. Special needs (excitement attributes) – these needs are not known to the customers but are overjoyed when they find them. Process of identifying the customer needs Collecting raw information from the customers through primary research or secondary research. Interpreting the raw data and brainstorm all the possible attributes of product or service to please the customers.

Classify these attributes as direct needs, latent needs, constant needs and special needs. Make sure the products or services have all the appropriate direct needs. Document the outcome for the entire design team. Deliver a product or service at a price the customers have the ability to pay, while still maintain a good profit margin. Customer expectations and satisfaction Customer expectations Understanding the customer expectations can help increase customer satisfaction. Knowing who the customers are and what they want will result in excellent customer service and high customer satisfaction.

If the expectation of the customer is not fulfilled, they will not come back and buy the product r service again. On the other hand, if the product exceeds customer expectation, they will come back to buy again, and tell all their friends about the experience. “The first step in exceeding your customer’s expectations is to know those expectations. “- Roy Hollister Williams Customer satisfaction Customer satisfaction depends on the extent to which customer’s expectations about the product or service is fulfilled. Customer loyalty is the direct result in customer satisfaction.

Customer satisfaction is a measure of how the product or service of an organization meets or exceeds customer expectation. The achievement of customer satisfaction leads to customer loyalty and product or service repurchase. Customer satisfaction measurement process Consequences of customer dissatisfaction Increase in existing customer turnover and failure in attraction new ones. Fail to attract the organization’s market share. Discontinue purchasing the goods and services. Reduction of customer loyalty. Complain to the company or to a third-party and perhaps return of item. Downfall of organization reputation.

Engage in negative word-of-mouth. Methods of improving customer satisfaction Treat customers like they are the boss- every customer interaction can flip the angle on customer service. Thank all customers for their business, help them when in need, keep promise and hones¶y’, etc. Focus on measuring customer satisfaction- ask customer what they expect in a product or service and how through phone, in person or in print such as feedback sheets. Study complaints and compliments- compliments show what to strengthen while complaints point to new ideas and action steps for improvement.

Built customer loyalty to increase customer satisfaction- if the customers are loyal, hey will repurchase the product and service from the particular organization. In order to increase the customer loyalty; remember special occasions of the customer such as birthdays, talk to customers what they want in a product or service and deliver. Set customer expectations early- do not set the expectations too high when starting a new business. Customer loyalty is increased if the product or service meets or exceeds their expectations. Compare to best competitors- compare the products and services to the best competitors and try to beat their outcome.

Conclusion Customer relationship management is a concept that gives a broader idea about how organizations manage their relations with customers. Customer relationship management is needed to meet the changing expectations of customer and reduce and manage dissatisfied customers. It is a strategy by which organization increases quality service to fulfill customer needs and wants. CRM is a tool of promotion and it helps to improve the channel of market. CRM helps to increase the sales in low cost, improve retention and loyal of customer, increase in profit, accurate target market and profiling, etc.

Customer need is the difficulties that customer aim to solve with purchase of a product or services. Customer needs can be found after researching customer expectations and satisfaction. Customer expectations are the needs that the customer wants in their product or service. If the needs are met or exceed their expectation, thus result in customer satisfaction. Customer satisfaction is very important for the betterment of the organization. If the customers are satisfied there will be increase in customer loyalty and positive word-of-mouth.

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