User:Nachelie/Customer relationship management

Types

Strategic

Strategic CRM concentrates upon the development of a customer-centric business culture.

Customer centricity is defined by the capacity of organizations to emphasize on providing customers opportunities to imply in every aspect of the business. The customer is considered a partner in the organization as the organization is devoted to the belief that the customer is the center of all that they do.

The focus of a business on being customer-centric (in design and implementation of their CRM strategy) will translate into an improved CLV.

Improving CRM within a firm

Analyzing the information

Managers must understand the different reasons for the types of relationships, and provide the customer with what they are looking for. Companies can collect this information by using surveys, interviews, and more, with current customers. Companies must also improve the relational intelligence of their CRM systems. These days, companies store and receive huge amounts of data through emails, online chat sessions, phone calls, and more. Many companies do not properly make use of this great amount of data, however. All of these are signs of what types of relationships the customer wants with the firm, and therefore companies may consider investing more time and effort in building out their relational intelligence. Companies can use data mining technologies and web searches to understand relational signals. Data mining is one tool which helps companies achieve new insight and actionable knowledge from their business data. Data mining is a process which implements machine learning, statistical analysis, modeling techniques, and information technology to track down hidden facts, undiscerning patterns of behaviors, and trends. Scholars also mentioned how data mining contributes to better management decision-making in many areas from planning to improving marketing, matching inventory to customer requirements, and customer targeting. It ultimately assists to enhance customer relationships through profiling, profitability which focus on the degree of yielding profit, worth which proves how valuable the customer is to the business, and loyalty analysis. Social media such as social networking sites, blogs, and forums can also be used to collect and analyze information. Understanding the customer and capturing this data allows companies to convert customers' signals into information and knowledge that the firm can use to understand a potential customer's desired relations with a brand.

In practice

Social media & Mobile

Social CRM involves the use of social media and technology to engage and learn from consumers. Because the public, especially young people, are increasingly using social networking sites, companies use these sites to draw attention to their products, services and brands, with the aim of building up customer relationships to increase demand. With the increase in the use of social media platforms, integrating CRM with the help of social media can potentially be a quicker and more cost-friendly process. The basic data stream in CRM which is thoroughgoing contact history for each customer. Each customer’s files include their purchases, products, and customer support inquiries. Companies are able to pull a personalized history file for the customers, through which they can track their purchases, product inquiries, customer support inquiries, and other forms of data. With this knowledge, companies can provide improved services to their customers, and also have an idea of what can be suggested. Companies use the resulting database to ensure the representative can assess a list of statistics on each customer. For a customer calling customer service, for example , a list of information about previous contacts with the customer will be accessible to the person responding, such as products previously purchased.

Some CRM systems integrate social media sites like Twitter, LinkedIn, and Facebook to track and communicate with customers. These customers also share their own opinions and experiences with a company's products and services, giving these firms more insight. Therefore, these firms can both share their own opinions and also track the opinions of their customers.

Enterprise feedback management software platforms combine internal survey data with trends identified through social media to allow businesses to make more accurate decisions on which products to supply. Through feedback and reviews, the success of CRM is competent to also be evaluated on sites, as an example Yelp.

Market trends

Vendor relationship management

Another related development is vendor relationship management (VRM), which provide tools and services that allow customers to manage their individual relationship with vendors. VRM development has grown out of efforts by ProjectVRM at Harvard's Berkman Center for Internet & Society and Identity Commons' Internet Identity Workshops, as well as by a growing number of startups and established companies. VRM was the subject of a cover story in the May 2010 issue of CRM Magazine. Vendor relationship management has a close bond with customer relationship management. The next insightful step for vendors is applying CRM. Implementing CRM helps to elicit customer satisfaction.