There is a general buzz surrounding Customer Relationship Management these days declaring it to be the cornerstone of success for any company. Self proclaimed gurus offer consultancy services to help improve the CRM systems of companies. So what exactly is Customer Relationship Management all about? And why should you consider setting up CRM systems in your business? These are the questions that we deal with here.
What is Customer Relationship Management?
Simply put customer relationship management is about taking care of your customers. Looking after their interests and needs and making them feel important. Imagine that you are a customer of a certain bank. You need to use a specific service such as getting a loan for house renovation. How would you feel approaching a person whom you don't know for that loan? A little nervous, somewhat uncertain and definitely stressed out more than usual. Now imagine that the person whom you meet in the bank is friendly and helpful. Not only does the banker let you know what all documents you will require and the procedure but also helps you fill in the forms. Now you are relaxed and your work is almost done and all thanks to the Customer Relationship Management policy of the bank.
Is CRM really that Important to a Business?
Yes, indeed it is. Imagine the same situation you found yourself in above but with an unhelpful and apathetic bank employee. How much more difficult it would be for you to get through the whole loan process? You may need to make more than a couple of trips to the bank just because the proper procedure would not have been explained to you or you may not have been told about all the documents that you would need. The frustration and anxiety would be a whole lot more and there would be no satisfaction of being taken care of by the bank. Plus you would definitely avoid getting a second loan from that bank wouldn't you? So the bank loses out on future business as well. That itself would hurt any business.
Must CRM always be a Formal System in the Company?
No, not necessarily. In some smaller organizations the people have a personal touch and there is no need for a structured CRM system. However in a large organization the customer will never deal with the same employee twice and so will need to explain all his needs and requirements repeatedly to each individual he deals with. Think back to the bank example. Wouldn't it be easier to deal with a small branch office where the same person looks after all loan applications, as compared to a larger branch office where you may get to meet one of twenty people in the loans department. With a CRM system in place all the information would be available to whoever was dealing with your loan the day you went into the bank. That would make your experience of getting that loan approved that much easier.