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Value -The first ingredient is creating value for customers. Value maybe different for different customers. It may be price or convenience or variety of needs answered or better service or customization. It is relative so could be different for different people. - e.g. Internet banking, mobile vans, ATM’s one stop shopping malls, better service, Premium price for customization - furniture, car etc.
Segmentation –The second ingredient is grouping customers sharing particular characteristics or needs into a homogenous segment .This considerably helps the shotgun approach. The crucial step in GOT CRM initiatives is understanding customers which becomes easy by segmenting them and thus the understanding can be translated into corporate profitability. The segmentation may be based on demographics, behavioral characteristics, customer needs etc
Customer Process - The third ingredient is the customer process. It is everything that firms do as corporate processes for customer satisfaction. The most relevant being
Managing customer information – The basic minimum information about the customer that must be always acquired and maintained is the demographic information such as age , education, gender etc.. The quality of information may be more detailed and sophisticated depending upon the corporate ambition and focus on customer needs. e.g. relationships with other customers or prospects and their behavior etc. Making Decisions about customers : Customer information must be utilized to achieve something meaningful .e.g. Using this information in improving the customer interactions, a better understanding of customer decision making , delivering a better, customer experience and improving the profitability. Data warehousing and data mining etc can be used for this purpose. Marketing to customers – More focused marketing, segment driven marketing, relevant timing and personalization of customer interactions can make the interactions more effective. Interacting with customers – This is not just a goody interaction but a more effective and relevant customer contact across different channels and media making the content appropriate and desirable.
· Loyalty - The fourth ingredient is loyalty. Loyal customers make repeat purchases, forgive mistakes and slips, bring new customers, teach the company about their preferences. Apparently loyal customers may also report low levels of satisfaction as they keep buying a product due to the compelling corporate policy tie up ,or due to lack of choice or plain inertia. Thus, loyalty should not be confused with inertia and must focus on valued customers i.e. loyalty of undesirable customers should not be preferred.
· Profitability- The fifth ingredient is profitability. Plainly it is getting more money from customers but along with their satisfaction through a better understanding of customers, delivering better value cost effectively and pleasing the existing customers sufficiently to bring in more customers.
CRM can bring profitability by:
· Increasing sales through cross selling ,up selling, self service media such as a transactional website.
· By using knowledge gained from customers one comes to know what exactly the customer wants. Focusing on this useful information value can be delivered to the customers more cost effectively. Due to the shotgun approach wastage of efforts can be reduced and the increased efficiency can be used to attract more customers.
· Pleased customers automatically bring other customers to the firm by referral. But in the past it was limited to family ,friends and word of mouth publicity. Now spreading word to a large global community is possible with Internet and an active lobby of satisfied customers .
Customer Centric – The last but not the least ingredient is being customer centric. It does not mean handing over all controls to the customer. To what extent the customer can have a say in the product or service being produced is to be decided by the corporate strategy. For more - https://got-softwares.com/
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