Cost Benefit CRM

8/2/2019 Cost Benefit CRM

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Customer Relationship Management CRM

Every business unit emphasizes on spurting a long term relationship with

customers to nurture its stability in todays blooming market. Customers

expectations are now not only limited to get best products and services, theyalso need a face-to-face business in which they want to receive exactly what

they demand and in a quick time.

Customer Relationship Management is an upright concept or strategy to solidify

relations with customers and at the same time reducing cost and enhancing

productivity and profitability in business. An ideal CRM system is a centralized

collection all data sources under an organization and provides an atomistic real

time vision of customer information. A CRM system is vast and significant, but

it be can implemented for small business, as well as large enterprises also as the

main goal is to assist the customers efficiently.

Usually an organization consists of various departments which predominantly

have access to customers information either directly or indirectly. A CRMsystem piles up this information centrally, examines it and then makes it

addressable within all the departments. Lets take an example of an international

call center which uses a CRM tool called xyz and is integrated with a phoneand a computer system or laptop. Now this system automatically perceives

which customer is calling. Before the executive attends the phone the CRM

system brings forth the customer details on the computer or laptop screen andalso indicates what the opportunity of deals is with that particular customer,

what the customer had already purchased or ordered in past and what is the

probability of buying in future. Not only this, it can also highlight what allproducts best suit this customer. For finance department it may show the

information regarding the current balance and for accounting department it may

pop out the information regarding the recent purchases by the customer. All

these pieces of data are stored in the CRM database and are available as and

when it is needed. According to this example, CRM system provides a well

defined platform for all business units to interact with their clients and fulfill alltheir needs and demands very effectively and to build long-term relationship.


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CRM Basics:

Vendor Scrutiny Essential

Industries need to know that most CRM solutions are far from easy toimplement and that they need acute understanding of CRM services and

vendors before its actual implementation.

Vendor scrutiny is absolutely essential to ensure that an organization chooses

the most appropriate solution for its business activities. This step although the

first proves to be as much a perquisite as the actual implementation.

CRM systems basics focus on the idea that customers hold the key to success

and this is easily evident from their phenomenal impact on sales, marketing, and

market trends .While choosing a solution it is important to scrutinize each

vendor and make sure that the chosen solution contributes to organization goals.

Technology vs. Customer Strategy

Merely focusing on the implementation of varied technology would not suffice.

It is evident that personal contact, employee knowledge of customers,establishing an excellent rapport with the customer himself all contributes to the

success of the organization. With the installation and use of technology alone

customer pitfalls cannot be overcome.

CRM Rewards

CRM also provides the customer with a much needed avenue to vent his

problems, ideas and suggestions. Hundreds of sales leads are lost yearly as

disinterested employees pay slack attention to customer suggestions. A venue is

required for these suggestions. This is supplied by CRM implementation.


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The Net Result

Observing an excellent response from the organization , the rapport established

with them and the interest paid to their suggestions and ideas,boosts customer

interest in the organization itself along with the products and services it carries ,with the net result being a hike in customer retention and customer loyalty.

CRM services are vital to an organization and are a perquisite that needs to be

adopted.

What CRM Offers:

CRM has a lot to offer most industries but it is the mode in which it is actually

implemented that holds the key to actual CRM success. It is the common

misconception that technology comes before customer strategies but in reality it

is the other way around. Customer strategies are the keystone to businessactivities and technology is the latter half. There can be such a thing as CRM

collapse if the organization fails to do what it needs to in order to ensure success

and use adequate management and other resources required .

The basics of CRM require a comprehensive study of the customer, collation ofhis data and provision of this data to the organization. It is imperative that

organization employees gain access to this data especially those that are

engaged in direct dealings with the customer himself. This collated data provesrewarding in that it is an insight into the customer and thereby provides the

person / persons using it to find solutions to customer problems.


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Many companies have misconceptions about CRM in regard to assessing

customer satisfaction in order to enhance business. There are several

misunderstandings in Customer Relationship Management to be checked

otherwise these may cost the organization revenue and profits.

MISCONCEPTIONS:

Identifying CRM with a software system- CRM is a business strategy which

consists of people and business processes in addition to technological

implementations. A successful implementation of CRM is not possible without

each one of them. So CRM is not an IT issue only to be simply equated to

software. It would be improper to have a successful business purely

technology-centric ignoring the importance of people and processes. Softwareis only an enabling or a facilitating device. The process is implemented and

enabled by the software only when it is properly designed and developed by

people. Then only it can deliver customer and company value. Therefore the

right implementation sequence has to be followed and it must include proper

competencies and peoples attitudes, the right business strategies and then theright IT implementation.

CRM is a complicated system, difficult to understand- The meaning of CRM

is simple - to fetch customers, retain them and maximize profitability. Becauseof the fast developing technology there is pressure on IT professionals to cope

up with the recent developments. So the how part of implementing CRM may

be felt difficult. But the why part of the CRM concept is also not difficult tounderstand. If we go back to the times when there was no IT implementation,

still customer relationships were being managed then by keeping in mind a

customer database. Now, in the present times technology is more advanced andthe quality of customer management have been entirely changed. But the core

of CRM and the target remain the same - to maximize business profits. Keeping

this perspective in mind proper techniques must be employed to access its

utility.


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CRM is expensive and unaffordable by small enterprises- It is a myth that IT

maintenance cost is unaffordable by small and medium class entrepreneurs.

Nowadays Application Service Providers with simple and limited functions

have been introduced to provide CRM at affordable prices. Its operation is easy

without involving expensive IT professionals. Therefore to target good resultsemphasis should be on people and procedure strategies and utilize software at

the end part only.

Wrong assessment for the Return On Investment in CRM- In CRM

implementation, Return on Investment means the evaluation of returns with the

costs incurred. CRM is sometimes regarded as giving a poor ROI? It is the

wrong way to think so. In fact the probability of poor ROI is more if CRM is

not deployed and the opportunity costs are more. The main causes of poor ROI

are ignoring people and procedure strategies, absence of quantified

benchmarking to measure the results, lack of vision in strategic acquirement of

opportunities etc. These are the points to ponder before implementing a CRM.

Who is responsible for CRM implementation - The Marketing, Sales,

Customer Service, or IT officials?- It is not at all advisable to lay the

responsibility on all of them individually. The result will be that none of them

will feel his responsibility. The responsible person should be the CEO who isthe leader of the enterprise and it is he who formulates and manages the

business strategies. Why the other person should be pressurized? In order to

have a better success index, the CEO and his immediate deputy should be welleducated and trained for a better implementation of CRM.


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Why companies must ensure they have good CRM system in play

Customers normally become delighted when a supplier under-promises and

over-delivers. To over-promise and under-deliver is a recipe for customers to

become very dissatisfied.

Rule No 1 - You cannot assume that you know what a customer's expectations

are ... You must ask.

Rule No 2 - Customer expectations will constantly change so they must be

determined on an on-going basis.

The expectations of different customers for the same product or service will

vary according to:

social and demographic factors economic situation educational standards competitor products experience

Therefore, given all these variable factors, it is no surprise that one size

certainly does not fit all.


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The ultimate purpose of CRM, like any organizational initiative, is to increase

profit. In the case of CRM this is achieved mainly by providing a better service

to your customers than your competitors. CRM not only improves the service to

customers though; a good CRM capability will also reduce costs, wastage, and

complaints (although you may see some increase initially, simply because youhear about things that without CRM would have stayed hidden). Effective CRM

also reduces staff stress, because attrition - a major cause of stress - reduces as

services and relationships improve. CRM enables instant market research as

well: opening the lines of communications with your customers gives you direct

constant market reaction to your products, services and performance, far better

than any market survey. Good CRM also helps you grow your business:

customers stay with you longer; customer churn rates reduce; referrals to new

customers increase from increasing numbers of satisfied customers; demand

reduces on fire-fighting and trouble-shooting staff, and overall the

organization's service flows and teams work more efficiently and more happily.

The old viewpoint in industry was: 'Here's what we can make - who wants to

buy our product?'

The new viewpoint in industry is:

'what exactly do our customers want and need?' and

'what do we need to do to be able to produce and deliver it to our customers?'

This is a significant change of paradigm and a quantum leap in terms of how

businesses look at their business activity.

The traditional approach to customer relationships was based on a simpletransaction or trade, and little more. Perhaps there would be only a single point

of contact between one person on each side. All communication and dealings

would be between these two people, even if the customers' organization

contained many staff, departments, and functional requirements (distribution,

sales, quality, finance, etc).

The modern approach to customer relationship management is based on

satisfying all of the needs - people, systems, processes, etc - across the

customer's organization, such as might be affected and benefited by the

particular supply.


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WHY IS A CRM SYSTEM SO IMPORTANT?

Customer Relationship management is the strongest and the most efficient

approach in maintaining and creating relationships with customers. Customer

relationship management is not only pure business but also ideate strongpersonal bonding within people. Development of this type of bonding drives the

business to new levels of success.

Once this personal and emotional linkage is built, it is very easy for any

organization to identify the actual needs of customer and help them to serve

them in a better way.

Looking at some broader perspectives given as below we can easily determine

why a CRM System is always important for an organization.

A CRM system consists of a historical view and analysis of all theacquired or to be acquired customers. This helps in reduced searching andcorrelating customers and to foresee customer needs effectively and

increase business.

CRM contains each and every bit of details of a customer, hence it is veryeasy for track a customer accordingly and can be used to determine which

customer can be profitable and which not.

In CRM system, customers are grouped according to different aspectsaccording to the type of business they do or according to physical

location and are allocated to different customer managers often called asaccount managers. This helps in focusing and concentrating on each and

every customer separately.

A CRM system is not only used to deal with the existing customers but isalso useful in acquiring new customers. The process first starts with

identifying a customer and maintaining all the corresponding details into

the CRM system which is also called an Opportunity of Business. TheSales and Field representatives then try getting business out of these

customers by sophistically following up with them and converting theminto a winning deal. All this is very easily and efficiently done by an

integrated CRM system.

The strongest aspect of Customer Relationship Management is that it isvery cost-effective. The advantage of decently implemented CRM system

is that there is very less need of paper and manual work which requires

lesser staff to manage and lesser resources to deal with. The technologiesused in implementing a CRM system are also very cheap and smooth as

compared to the traditional way of business.


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All the details in CRM system is kept centralized which is availableanytime on fingertips. This reduces the process time and increases

productivity.

Efficiently dealing with all the customers and providing them what theyactually need increases the customer satisfaction. This increases thechance of getting more business which ultimately enhances turnover and

profit.

If the customer is satisfied they will always be loyal to you and willremain in business forever resulting in increasing customer base and

ultimately enhancing net growth of business.


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A look at some of the benefits of CRM:

It is a business strategy that applies to almost every organization;therefore almost all organizations stand to gain from its use.

Customers are motivated to return again and again as they receive goodcustomer service and continue to do business Since acquiring a new customer is far more costly than retaining an

existing customer more and more companies are turning to CRM as it isable to achieve this. Companies need this in order to stay competitive.

Many forms of advertising are not as effective as they need to be. CRMenables a company to target their audience more precisely and gain

customer retention, all at a lesser cost. CRM helps your business as it lets

you do more for your customer and gain more from them.

Since every organization needs to understand the importance of cross-selling and since CRM does that they are able retain their customers forlonger periods.

CRM delivers company-wide access to customer information. Using CRM applications can lead to increases in revenue from almost all

areas.

Reductions in operating costs is a by product of CRM implementation. Simplification of marketing and sales processes is achieved in

organizations implementing CRM by their understanding of customer

needs Better customer service is achieved through improved responsiveness and

understanding. This builds customer loyalty and decreases customer loss.

CRM enables a company to build a database about its customers so thatmanagement, salespeople etc could access information, match customer

needs with plans and offerings, render better customer service etc.

It enables an organization to create detailed profiles such as customerlikes/dislikes etc.

CRM gains the trust of customers by meeting their needs in a morepersonalized way.

CRM delivers personalized, informed service that customers expect. Thisis because of a system that contains and provides a complete profile of

the customer, including all past and present behavior patterns.

A higher percentage of cross-selling is possible in companies opting forCRM

With globalization CRM offers companies a chance at increasedcustomer loyalty, higher margins and customer retention

Companies achieve more success in attracting new customer on accountof their quicker and more efficient responses to customer leads andcustomer information.


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CRM helps an organization to develop better communication channels CRM helps an organization to collect vital data, like customer details etc.

This data can be used for customer interaction.

Companies opting for CRM find it easy to identify new sellingopportunities.

The traditional systems used by Customer Service, Sales and Marketingcan now be done away with and the gaps filled with CRM

implementation


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6 Factors to Consider when buying CRM

1. Requirements

Before you can compare CRM applications, you must determine which features

and capabilities you need to solve your problems and achieve your goals.Talk to key stakeholders - including your clients and staff in customer-facing

roles - to identify the processes and interactions that need to be improved, and

the tools required to make those improvements. This will enable you to build a

comprehensive, accurate requirements list prior to starting your search.

2. Budget

Because many mid-sized businesses are working within tight financial

constraints, finding the right balance of affordability and functionality in CRM

applications can be challenging.Determine how much you can spend before you begin talking to vendors. Only

those vendors who can deliver the features you need, within your price range,

should make it on to your short list. Don't let over-eager sales reps talk you intohigh-ticket CRM applications that go way beyond your budget - chances are,they include more features than you really need.

3. IT Resources

How much strain will the CRM application put on your IT team? Do you

enough staff to handle both implementation and ongoing maintenance? And, dothey have the right skills and training to support the project?

If the answer to any of these questions is no, then an on-site CRM application

may not be right for your company. Consider hosted or on-demand CRMapplications instead, which minimize IT burden.

4. Technology Infrastructure

How well will the CRM application fit within your current environment? Can it

be easily integrated with your ERP and other critical business systems? Be sure

any CRM application you choose will enable you to continue leveraging yourexisting investments, and won't negatively impact the other technologies yourely on.

5. Industry-Specific Needs

Does the vendor have experience working with companies that are similar to

yours? Do they offer products and services designed specifically for your

industry? A vendor who has an understanding of your business can help you


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structure your solution and your processes to maximize the value of your CRMapplication.

6. Complexity of Business Processes

How intricate are your sales and service models? How many departments willbe impacted by your CRM application? Do you need to make the CRM

application available to external stakeholders, such as business partners andcustomers?

Gaining a thorough understanding of the activities and processes your CRM

application will support will help you determine what kind of solution (i.e.which modules and features, how many users, etc.) will best fit your businessneeds.

HOSTED CRM

A great option for SMEs

Hosted CRM is an arrangement in which a company outsources some or all of

its customer relationship management (CRM) functions to an application

service provider (ASP). The hosted CRM model is said to increase return on

investment (ROI) by decreasing costs and allowing a company to focus more

resources on its main business areas. In-house CRM, on the other hand, while

more expensive, is also said to allow more customization. Companies offering

hosted CRM include Siebel, Salesforce.com, and UpShot.

The hosted CRM model is most prevalent in small-to-medium size companies,

especially those who don't already have well-established CRM processes.

According to a study from Nucleus Research, over 80% of companies that

outsourced CRM achieved a positive ROI. The study reported that problems

with the traditional in-house CRM model include high software and consultingcosts, ineffective user adoption, and poor management. However, because in-

house CRM can be tailored more specifically to the particular needs of an

organization, most larger companies opt for the traditional model.


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COSTS INVOLVED IN CRM

CRM costs including the IT and software costs differ from product to product

and company to company. Seldom will two companies adopt the Exact same

strategy with the same costs.Once you've clearly defined your business requirements, CRM projects can be

broken down into three main areas of costs:

1) CRM Software Costs

The price ofCRM software usually consists of: the price of software licences the price of software maintenance.

2) Professional Service CostsProfessional services refer to what you need to get done to get your CRM

system up and running. They can include the costs of everything from scoping

the project to software configuration, hardware and training. They include

internal costs (such as the time of your own staff) as well as the price charged

by your CRM solutions provider.

3) Support Costs

Support costs generally refer to the price of assistance to keep the system going.

They will usually include the costs of technical support, administrator support

and user support, such as access to a help desk. Sometimes support costs

include CRM software maintenance costs: it depends on wording and thevendor.
http://www.concentrix.co.uk/software/crm/http://www.concentrix.co.uk/software/crm/


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Other factors to keep in mind while calculating CRM costs

Opting for a rented CRM solution has its cost advantages in that itrequires less investment. However this can cause additional costs to the

company in the long run Most often than not simply opting for a cheap solution is not the answer.

Organizations need to access their company's requirements beforechoosing and find a solution that addresses the business issues

completely.

Money spent on consultants need to be adequately addressed. Most oftenthan not companies land up paying more on CRM consultants than is

actually required. It is imperative that an organization focus on its actual

CRM consultant need, study the available consultants thoroughly and

finally choose one that fits the budget and still provides the necessaryservices.

Make a storage unit that uses all the data available and uses this data tostudy existing customer preferences. This saves a lot of money

The most important aspect for companies to focus on is the need toachieve its CRM objectives with minimal cost. Focusing merely on the

cost factor alone is insufficient; applying the customer relationship

management solution after a comprehensive look at the CRM product

prices is what is required.


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CRM's ROI -The True Picture

Enterprises need to realize that CRM is a business strategy with underlying

technology, and that itrequires large investments in applications, hardware,

software, telecommunications, internal labor,external consulting services and

training. Therefore, an enterprise should calculate the businessbenefits

associated with reducing the total cost of ownership (TCO) of CRM, and use

these to build a compelling justification for its CRM project. In addition,

ongoing measurement of CRM benefits helps ensure that an enterprise receives

expected advantages and achieves strategic objectives.

Several key concepts form the foundation of CRM economics.

TCO provides a holistic view of IT costs across the enterprise over time, and

includes people, processes and technologies.

Benefits are those tangibles or intangibles that promote or enhance the well-

being of, or provide an advantage to, the business. Demonstrated benefits result

from identifying various metrics and the degree to which implementing CRM

will impact those metrics.

Return on investment (ROI) which, in its simplest form, is benefits less cost

is the most important concept, because it is a measure of how a project

affects an enterprises financial statement.

An enterprise must understand CRM economics because two of the three key

drivers of a CRM strategyoptimizing revenue and profitabilitylink

directly to understanding economic benefits.

These benefits (for example, contributions to earnings per share) accrue only

after an enterprise follows through and takes the necessary actions.


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Businesses often ignore undergoing this crucial analysis of their CRM systems,

thus overlooking possible loopholes and eating into their own profits.

Some of the common reasons cited for not calculating CRM ROI include:

Difficult to accomplish

Not necessary

Lack of priority by business or IT

No tools for the job

Will be considered after the CRM implementation

No ownership

No clear method for determining ROI

Dropped after initiating the project

Confidentiality

The return on investment (ROI) from CRM implementation is essential and

needs to be measured as it provides a yardstick for success.

CRM ROI can be termed as any of the following:

cost reductions or efficiencies created by the CRM implementation customer retention or customer loyalty possible customer value in the future that has been created due to CRM

implementation

Most organizations have varied opinions about the measurement of CRM ROI.

However it is often not as assumed. ROI is not as fluctuating or unpredictable as

expected. Following the right guidelines and ensuring that the utmost effort ismade to ensure that it is implemented the right way, will go a long way instabilizing ROI and ensuring that it meets with the expected results. It is

absolutely essential to measure ROI and organizations should have established

their own measurement criteria. The analysis of ROI in the call center or

distribution system benefits is simple. However in analytical CRM, ROI

measurement is harder. Despite the fact that some companies are not used to the

metrics involved, measuring ROI is a perquisite.


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What can Industries expect in terms of ROI?

There are always different opinions. Some analysts state that the return on

investment (ROI) from CRM implementations is bad with almost 70% of the

CRM projects failing. This is again vehemently contradicted by those who feelthat almost 70% of projects succeed.

Why is there such a huge disparity in the results? The answer lies in the wrong

measurement or sometimes even failure of organizations to adequately measure

ROI. Aside from this of course low ROI is generally the resultant of poor CRM

implementation and wrong CRM strategy. The staggering statistics show that

less than 30% of companies actually measure ROI the right way. Metrics should

be established and companies should use yard sticks -starting off with a

business plan to avoid CRM failure.

Let's look at the positive side - According to surveys above 80% of companieshave found that CRM is profitable, has met with their benchmark estimations

and overall satisfied them. Aside from costing them less than what they had

estimated in the first place the time taken for the implementation was also less

and resulted in promoting customer retention and loyalty. This shows that a

positive and relatively high ROI can be expected if implementation andmeasurement is carried out the right way.

Stepping Stones to Achieving Higher CRM ROI

Establishing a business plan Establishing clear cut CRM objectives Correct estimation of costs involved Proposed financial metrics that are going to be used to measure ROI etc

are to be set out

The time allotted for the return on investment (ROI) should be stated -which should not exceed a year.

Costs of implementation need to be half of the amount of ROI expected Non monetary and intangible benefits should also have a benchmark for

success

An allowance for risk should also be made and the measures that will beadopted in case risks should befall the company should be laid out


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Holistic gains of CRM - The Rewards are Huge

Why opt for CRM? The staggering statistics show that up to 70% of customers

who walk away from a relationship with a company do so due to poor customer

service. What can your organization do to stop this from happening?

CRM the customer strategy of the decade has the answers. It offers several

advantages. CRM benefits include the following:

CRM Helps You Help the Customer

CRM is the business strategy that understands, anticipates and manages the

needs of an organization's customers. It puts the customer at the focal point of

the business. CRM can improve an organizations service to its employees and

serve to add more customers, resulting in creating the competitive advantage foran organization as it stimulates growth and customer/employee retention.

Customer retention the assured by product of customer relationship

management is one of the many benefits of CRM. CRM helps to increase

customer loyalty and brand retention. Customer Relationship Managementensures that customers are happy and that they keep coming back again and

again thus contributing to long term profitability since CRM assists in improved

customer service and support CRM implementation is essential in almost all thedepartments in the organization to have a complete view of each of their

customers.

CRM Increases Efficiency

CRM enables an organization to make quick decisions and indulge in

personalized customer care. CRM manages to bring change into the

organization and its business processes. It manages to achieve reengineering.

CRM promises more effective reach and thus aids the sales and marketingdepartment. It aids in providing for greater efficiency and cost reductions. It

accomplishes all this with an ever increasing dedication to efficiency.


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CRM Gives you the Competitive Edge

CRM is definitely a better stand against global competition. SME's for example

while implementing CRM have a greater advantage over large corporations as

increasing the effectiveness of one employee can contribute significantly to theoverall success of the organization. CRM offers great opportunity to provide

better products for the customer and does this at cost savings. Reducing costs or

keeping costs under control can be termed as one of CRM's main functions.

CRM improves ability to manage customer relationships and enhance customer

satisfaction. CRM serves as the company's anchorage that boosts revenue. More

and more companies are opting for the customer centric strategy of the decade

and those that opt to stay away from it will definitely face a disadvantage.

Companies that fail to implement CRM will lose the competitive edge.

CRM Boosts All Round Development

CRM helps to increase financial results and helps few people manage a large

quantity of customers. CRM meets the needs of salespeople and marketing

specialists in a single application. It provides immediate access to customer and

product information. CRM can improve an organizations service to itsemployees and add more customers. There is a considerable reduction in

mishaps in the organization with the implementation of CRM. It allows and

encourages the business owners/management to concentrate on new business.

CRM provides up-to-date information to end-customers at every possible place

and at all times. Customer Relationship Management is a prerequisite fortoday's business and organizations simply cannot afford to bypass this customer

strategy.


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APPLE INCWhy all of us own or aspire to own an apple product

A great brand loyalty = A great CRM strategy

When shoppers sleep outside of stores just to be one of the first to buy

an iPhone, it's obvious that Apple Inc. is a company that enjoys fanatical brandloyalty. However, this brand success is not a result of dumb luck or forces

beyond Apple's control; it's part of a well-thought-out plan to deliver strong

products and to create an Apple culture. Find out more about these and other

strategies that Apple employs to achieve its tremendous customer loyalty.

A Store Just for Apple: Apple has historically been troubled by big-box sales

staffers who are ill-informed about its products, a problem that made it difficult

for Apple to set its very different products apart from the rest of the computing

crowd. By creating a store strictly devoted to Apple products, the company has

not only eliminated this problem but has made an excellent customer-loyalty

move. Apple stores are a friendly place where Mac and PC users alike areencouraged to play with and explore the technology that the company offers.

This is a space where Macheads can not only get service but also hang out with

others who enjoy Apple products just as much as they do. By creating this

space, Apple encourages current and new customers to get excited about what it

has to offer.Complete Solutions: Apple's products complement and complete each other.

Buy an iPod, and you can download music via iTunes. For the average user,

most Mac programs are produced by Apple. This sort of control over the entireuser process, from hardware to software, strengthens customer loyalty. Apple

users generally don't have to stray to find products and solutions they want.Varied Products: Many consumers may not be ready to buy an Applecomputer, but they're willing to give gadgets like the iPod or iPhone a try. By

selling products with lower entry costs, it creates an opportunity for new users

to be introduced to Apple. If these users enjoy their gadgets, they're more likely

to consider buying an Apple computer in the future.Media Fodder: Media outlets, especially bloggers, love to write about Apple.

Why? Because Apple makes it so easy. With leaked rumors about newdevelopments, its very own expo and mysterious shutdowns of its online store,

Apple gift wraps news stories that are just begging for speculation and hype. By

perpetuating this cycle of media frenzy, Apple keeps its customers excited about

buying new Apple products now and in the future.Education Sales: By selling its products to schools and universities, Apple turnsclassrooms into showrooms. If students go through school using Apple

products, they become comfortable with the interface and familiar with the

superior performance the brand offers. By creating this early exposure, Apple

captures customers before they even know that they are customers.
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Products That Deliver: Apple carefully considers what consumers are looking

for, so its products are a result of both extensive research and strong design.

This meticulous planning is a large contributor to Apple's high customer-

satisfaction rates. It's plain and simple: Robust and easy-to-use products not

only make your customers happy, but also make them want to buy moreproducts from you in the future.

Outsourcing Unpleasantness: With Apple products, the average consumer's

interaction with the company is likely to be low. Unless something goes wrong,

you don't have any reason to speak with an Apple customer-service

representative. Of course, the iPhone presented an opportunity that could have

made Apple much more involved, similar to administering iTunes for the iPod.

With a phone, interaction becomes multifaceted. You have to consider billing

errors, quality of wireless service, contracts and a number of other factors that

often lead to customer frustration. With the iPhone, Apple was wise to stick

with building a good product and letting AT&T handle the service.Consistency: All of Apple's products have the same basic architecture. Becauseof this consistency, customers who already own Apple products have a good

idea of what they'll be getting before they make a purchase. They know that it

will be easy to adapt to new hardware, and this makes them more open to

making a repeat purchase.New Innovations: Although the architecture of Apple products is consistent, itsportfolio is not. The company offers consumers a number of different ways to

enjoy its products. By giving customers an opportunity to employ Apple in their

living rooms, pockets and offices, Apple makes it easy to stay loyal to a brandthey already like.

Attractiveness: From packaging to aesthetic design to user-interface experience,

Apple makes its products accessible and attractive. Bright colors, a smiling iconand slick-looking hardware remind customers every time they use Apple

products that what Apple offers is appealing.


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REFERENCES

Websites:

http://www.business-software.com/crm/buying-crm/six-factors-buying-crm.php http://searchcrm.techtarget.com/definition/hosted-CRM http://www.destinationcrm.com http://crmtrends.com

Books And Publications

Customer Relationship ManagementKristin Anderson, Caroll Kerr The CRM HandbookDyche

Cost Benefit CRM

Documents