stomer Relationship Management (CR Learning Objectives Define CRM; Understand the importance of CRM; Explain the determinants of CRM and the key stages in its Discuss the main functions and various models of CRM; Explain the role of salespeople as relationship developers Discuss the management of customer relationships.
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Customer Relationship Management (CRM)
Learning Objectives
Define CRM;
Understand the importance of CRM;
Explain the determinants of CRM and the key stages in its development;
Discuss the main functions and various models of CRM;
Explain the role of salespeople as relationship developers
CRM is “the development and maintenance of mutually beneficial long-term relationships with strategically significant customers”
(Buttle, 2000)
CRM is “an IT enhanced value process, which identifies, develops,integrates and focuses the various competencies of the firm to the‘voice’ of the customer in order to deliver long-term superiorcustomer value, at a profit to well identified existing and potentialcustomers”.
CRM is a business philosophy based on upon individual customers and customised products and services supported by open lines of communication and feedback from the participating firms that mutually benefit both buying and selling organisations.
The buying and selling firms enter into a “learning relationship”, with the customer being willing to collaborate with the seller and grow as a loyal customer. In return,, the seller works to maximize the value of the relationship for the customer’s benefit.
In short, CRM provides selling organisations with the platform to obtain a competitive advantage by embracing customer needs and building value-driven long-term relationships.
The role of salespeople as relationship builders and promoters
Salespeople by:
identifying potential customers and their needs;approaching key decision makers in the buying firm;negotiating and advancing dialogue and mutual trust;coordinating the cooperation between the customers and
their company;encouraging the inter-organisational learning process; contributing to constructive resolution of existing conflicts; andleading the customer relationship development team
are the individuals in any organisation who act both as relationship builders and as relationship promoters.
The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.
Initiating the relationship
Engage in strategic prospecting and qualifying;
Gather and study pre-call information;
Identify buying influences;
Plan the initial sales call;
Demonstrate an understanding of the customer’s needs;
Identify opportunities to build a relationship; and
Illustrate the value of a relationship with the customer
The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.
The global salesperson must be involved in the following activities in order to initiate, develop and enhance the process that is aimed at building trust and commitment with the customer.
Enhancing the relationship
Assess customer satisfaction;
Take action to ensure satisfaction;
Maintain open, two-way communication; and
Work to add value and enhance mutual opportunities.
CRM is a new business philosophy based on trust and value;
The core function of CRM is the value creation process;
Customer relationships develop over time;
The role of global salespeople in the process is that of both relationship builders and relationship promoters; and
The basic premise of CRM is to offer superior value to customers in an effort to turn prospects into customers, customers into loyal customers, and loyal customers into partners.