CRM 101: Customer Relationship Management for BeginnersWritten by Scott Hawksworth
Customer Relationship Management, abbreviated “CRM,” is term for a business strategy that is designed to improve customer service. CRM is also designed to increase customer satisfaction and gain new customers, thus increasing a business’ revenue. CRM is a term that can be applied to software and an entire business strategy.How Does CRM Work? Essentially, CRM works by gathering information about customers and analyzing information collected. An example of this would be supermarket discount cards (I.E. Kroger Plus Cards, ACME cards, Giant Eagle cards, etc...). When a consumer scans his or her card, and then his or her items, items that customer bought are entered into a database. This gives businesses an accurate idea of which customers buy what. Businesses then analyze this information. After analyzing data collected, businesses can adjust their marketing campaigns and increase sales. Customer Relationship Management brings company closer to customer. CRM closes a “relationship gap” that can be formed between business and its customers. CRM is also useful for customer service. Businesses can use automated CRM applications to analyze customer complaints, or compliments, and change business processes accordingly. Interestingly enough, CRM products also run many automated call-centers for businesses (I.E. customer service systems). CRM applications and practices are used to make businesses more efficient and improve customer satisfaction. What Can a Business Gain From Using CRM? There are many goals that businesses have when implementing CRM techniques and applications. The business wants to improve customer service, which will subsequently improve customer satisfaction. The business also wants to maximize revenue by advertising right products to right people. In other words, businesses want to know what customers want. Once a business finds what a customer wants through a CRM method, business can then provide customer exactly what he or she desires. This will lead to returning customers, and gaining of new customers. CRM processes also are designed to monitor all of contact between customers and companies. Maintaining a positive relationship with one’s customers is an essential element in business. Well-rounded CRM works to ensure that this element exists.
| | Understand What Flows Through Your Business to Find ImprovementWritten by Chuck Yorke
I remember once seeing a cartoon which showed two people working a counter. On wall behind them was a sign which read, “Quality Work, Low Price, Fast Service – Pick Two.” In order to deliver all three, which is what customers expect, it’s important to understand flows of your organization.The first flow is, of course, cash flow. This comes in two varieties, money coming into organization, revenue, and money going out, expenses. Understanding cash flow is not as easy as it appears. Throughput accounting and Lean accounting are two methods some companies are using to try and get a better understanding of how cash flows through a business. The second flow is product or service flow. This starts with how product or service is designed. The next step is how product is built or service delivered. How is product or service used? Finally, what happens when customer is done is product discarded, recycled, or consumed. How does information flow through organization? How does it come into company and how does it leave? How is it used in organization, does it follow work or pull work forward? What types of feedback is received? How does material flow in company? If a product is built, how are raw materials or parts brought to point of assembly. For a service, how do necessary information, materials, and people get to where they are needed? How does movement of workers flow? Is motion smooth or does it start and stop like rush hour traffic? Are there any wasted motions, like retrieving a paper file from a cabinet in another room or walking over to get a tool which is required for product assembly? Why is tool at point where it is needed? Why is file located in a cabinet in another area?
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