We are living in an era which is witnessing a splendid surge in the e-commerce industry. If a business is not online, it, surely, is at the sloppy end. There is a stiff competition going on in this online industry. If you have a customer, you’ve got to keep her/him and if you don’t, you desperately need to acquire new ones. Customers are the ones who control your business. Your mere presence doesn’t guarantee your success. You need to tempt your customers. They must consider you as credible and that’s where the concept of Customer Relationship Management (CRM) comes into existence. Now the question is:
What is CRM?
As the name suggests, it is a business strategy that aims to manage good relationships with customers. It involves understanding what a customer needs and what will be the required steps to fulfill those expectations.
It is not a trivial concept. It has evolved. It not only targets on retaining the existing customers but also focuses on acquiring new ones. This is required to solidify your firm’s presence in today’s market.
It comprehensively works towards the integration of every area of business that touches the customer.
How does CRM help an online business?
CRM focuses on creating value for the customer and the company over a longer term. When customers value the service they receive from their suppliers, they are less likely to look for an alternative.
It enables organizations to gain ‘competitive advantage’ over those who are supplying similar products and services.
Today’s businesses compete with multiproduct offerings created and delivered by organizations. Both retaining customers and building value-based relationships are critical to corporate performance. CRM ensures the same.
Statistically, with the use of CRM by an organization, researchers have shown that:
Revenues have gone up by 41% per sales person.
Customer retention got improved by 27%.
Sales and marketing costs have reduced by 23%.
Lead conversion improvements of 300%.
Clearly, CRM plays a pivotal role in the development of any business.
However, Gartner analyst Robert DeSisto once said that 85% of the companies that buy CRM software to automate sales efforts don’t pick the right tools because they fail to define business objectives.
This calls for a need to know what CRM actually involves.
What does CRM involve?
Organizations must be customer focused.
Market research must be undertaken to assess customer needs and satisfaction.
Customer needs must be taken into account and delivered properly.
These points must be taken care of by any organization to ensure constructive relationships with the customers and to take the desired steps to make their online business a success and not a side grown mushroom. CRM, in a nutshell, is all about building healthy relationships with your customers. Without customers, there can be no business or success.