CRM: A Business Philosophy that Optimizes a Company’s Customer Loyalty, Turnover & Profitability

Updated: November 02, 2010

Creating customer centricity

The customer centric process is an iterative process with a continuous improvement element incorporated. Implementing a CRM strategy requires that there is established a set of key success criteria's for:

  • Financial
  • Technological
  • Organizational

The organizational parameter is definitely an essential key to succeed implementing a customer centric strategy, since building a customer focused organization requires that the entire organization changes. The approach to such a change process can be as follows.

Customer focus - customer centric process cycle

Changing an organization from product-focused to customer-focused involves the whole supply chain - from design to customer service. All customer contact point need to be evaluated in terms of which key holders is responsible for optimizing the customer satisfaction and which initiatives can contribute towards enhanced customer experiences.

Customer needs
One of the major goals in a CRM strategy is customer visibility and insights about customer information. Therefore, it is critical to capture information for all customer engagement at every customer contact point. This information includes customer needs, behavior and expectations and is the foundation that is being analyzed and used for making informed customer centric decisions.

Customer segments

Most business has more than one type of customer segments i.e. based on size, industry, lifetime value etc. Therefore, it is crucial that there is an understanding of the need for individualized CRM programs that capture the distinctive customer needs and expectations.

CRM program

A CRM program is a cyclic business strategy that comprehends the following elements:

  • Establish goal for targeted customers
  • Acquire business
  • Fulfill business
  • Customer care

The process begins with targeting the desired customers and acquiring the customer business. To be able to establish and build a lasting relationship the initial promised terms of conditions need to be fulfilled. The continued customer care ensures that the customers are satisfied and turning into loyal customers, and new goals can be set for the customers so the business can capitalize further on the customers.
Evaluate and measure

It is an iterative process that is based on measuring on relevant KPI's related to customer engagements. Therefore, it is a constant learning about the customers and their needs, which continuously reshapes the CRM strategy. Some of these learning come from the research and analysis of data i.e. buying patterns, customer satisfaction etc. These customer insights need to be shared across the organization.

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