Importance Of Customer Relationship Management

817 Words 4 Pages
Question: Why is Customer Relationship Management so important?
Answer:
Customer Relationship Management (CRM) is a process of collecting, managing and evaluating detailed customer information across various touch points to understand their needs and ensure customer loyalty. Customer touch points include all interactions of the customer with the brands, products and services of a company.
CRM is implemented with the help of people and business processes in addition to technological implementations via Internet, call centers etc. to offer customized solutions to the customers.
The need for CRM is explained in the following points.
1. With increasing competition, companies need to differentiate their products and services from the competitors.
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With the help of CRM companies can gain a better understanding about their customers and provide a positive experience across all customer touch points. This leads to customer satisfaction which is an important performance parameter
E.g. Maruti organizes all-year round mega camp which includes complimentary car wash, AC & Pollution checkup, etc. This focus on better customer service gives them satisfied customers.
6. Customer loyalty stems from high customer satisfaction. Loyal customers also provide free referrals. Companies offer special reward programs for their premium and loyal customers in the form of exclusive offers and services.
E.g. ICICI Bank has a Credit Card Rewards program where it offers special coupons and discounts to people who use ICICI cards for their purchases repeatedly.
7. Customer retention is as important as customer acquisition. CRM helps companies meet customer expectations repeatedly which ensures retention.
E.g. Maruti made its entry into the used car market by allowing customers to bring their vehicles to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return. This helps them retain the
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Apple collects various customer information ranging from personal details to the websites visited with the help of Apple ID registrations, online surveys, cookies etc. They store this this user information in databases and analyze it. This helps them to understand the vital needs of the customer and gives timely insight to their preferences this making the product design better. It also helps in customizing advertising for their target audiences. Thus it increases the overall effectiveness and efficiency of the organization. Apple also aims to increase customer interaction to understand them better. They have designed attractive retail stores which provide a wholesome experience of owning an Apple product and garners them a lot of new customers. Apple customer support is well-known. It aims to provide the best service and make the experience

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