Impact of Customer Relation Management (CRM) in Business

Who is the most importance person in our business? What is CRM all about? Origin of CRM? Importance of CRM in business?

It is common knowledge that customers are the most important people for any business organisation. They are the resources upon which the success of the business depends. Customers help business to provide repeat revenue and certainty for the business. Organisations are dependent upon their customers. If they do not develop customer loyalty and satisfaction, they lost their customers. Without customers the organisation would not exist. So the purpose of the organisation is to fulfil the needs of the customers to make it possible to achieve business aims and maintain its long run in the business.

 

Customer satisfaction is at the heart of the selling process. One estimate is that it costs five times as much to attract new customers as it does to keep an existing one. The extent to which customers move up the ladder depends on how well they treated by the organisation. Well focused sales process and given attention to individual customer detail is likely to encourage customers to move up the ladder.

 

Before I go any further, it is vital to know what CRM is.It is very clearly defined that Customer Relationship Management (CRM) 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. It is the art of managing a healthy organisation relationship with their customers. In simple words, CRM refers to the study of the needs and expectation of the customers and providing them the exact solution to fulfil their desires.

 

Organisation must ensure that customers are satisfied fully with their products and services for higher customers’ retention. “Remember one satisfied and happy customer brings ten new customers with him whereas one dissatisfied customer takes away ten customers along with him”. Every business unit emphasizes on spurting a long term relationship with customers to nurture its stability in today’s blooming market. Customer’s expectation are now not only limited to get best products and services, they also need a face to face business in which they want to receive exactly what they demand and in a quick time.

 

CRM system provides a well defined platform for all business units to interact with their clients and fulfil all their needs and demands very effectively and to build long term relationship. Effective customer relationship management retain existing customers and ensures that they return back home with a smile. It strengthens the relationship between the organisation and customers and also adds new customers.

 

CRM originated in early 1970s when the business units had a manifestation that it would be advisable to become ‘customer emphatic’ rather than ‘product emphatic’. Birth of CRM was because of this heedful perception.The famous writer and management consultant Peter Drucker wrote;’ the true business of every company is to make and keep customers’. Organisation used to work hard in entertaining customers by providing new products with astonishing services for grasping more and more customer for increasing business; it resulted in customer’s satisfaction and loyalty.

 

The outgrowth in origin of CRM as a strategic approach is a result of some of the following important perspective:-
1. The belief that customer are the real assets and not just the people in the audience.
2. The maturation of one to one transaction advent.
3. The change of business view to relationship approach rather than transactional approach.
4. The realization of the benefit of utilizing information proactively and not reactively.
5. The approach of focusing on customer satisfaction and loyalty rather than focusing self satisfaction and profit.

 

Thus, CRM is the strongest and the most efficient approach in maintaining and creating relationship with customers.CRM is not only pure business but also ideate strong personal 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 organisation to identify the actual needs of customers and help them to serve them in a better way. This is how CRM can have an impact on the business organisation:

 

 It foreseescustomers’ needs effectively and increase business.
 It contains each and every bit of details of a customer, hence easy to track and determine which customers can be profitable and which is not.
 It helps in focusing and concentrating on each and every customer separately.
 It is useful in acquiring new customers.
 All the details in CRM system is kept centralised which is available anytime on fingertips. This reduces the process time and increase productivity.

 

In today’s commercial world, practice of dealing with existing customers and thriving business by getting more customers into loop is predominant and is amere dilemma. Installing a CRM system can definitely improve the situation and help in challenging the new ways of marketing and business in an efficient manner.Hence in the era of business, every organisation should be recommended to have a full fledged CRM system to cope up with all the business needs.

 

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