7 Principles For Building Profitable Customer Relationships
Here are seven effective principles to follow. The most basic principle of customer relationship management, it is often overlooked by. Relationship management is a strategy in which an organization maintains a continuous level of engagement with its audience. The foundation of effective. Customer Relationship management is to built on an iterative process of learning and customization. Peppers and Rogers ().
One of the most important features of CRM is often organizing the interaction history with contacts and companies. Each phone call, email or SMS is associated with a specific contact and is aggregated together under the company as well. This way it is easy to understand the recent communication with the prospect or customer without pulling information together from various sources.
Many CRM applications also allow you to take notes on contacts or companies, and include them in the interaction history. Interaction history is information based on past activity, and Customer Relationship Management systems allow you to set reminders for future activity. For example, a reminder might be to call a contact on a certain date or find out more information about a company by a certain time.
The 12 Principles for Building Profitable Customer Relationships | Brad Cleveland
Additional information associated with reminders might be the type of future activity needed, the priority of the reminder and who is responsible for completing the reminder. What makes CRM more than just a simple contact management application is its tracking of leads and opportunities.
A lead is typically an inbound request for information by a contact that might turn into a customer. An opportunity is typically a potential sale with a company or individual. Opportunities are tracked through various stages — also called sales stages — to show their progression and their likelihood of conversion.
CRM allows sales teams to track all of their opportunitiesproject when they are likely to close and work on associated reminders with those opportunities. Companies see increased sales coming from CRM due the fact that their sales teams are more organized.
With all of the information about opportunities in one place, sales teams become more effective with their follow-ups and are less likely to let deals fall through the cracks. In some sales organizations, CRM provides a productivity boost that enables the same sales team to handle more leads and opportunities. In this case a company decreases its costs to handle each prospective customer and can increase profitability.
Customer Relationship Management software can also be used to increase customer satisfaction.
When properly utilized, CRM has a lot of information about customers and prospects; sales teams can use this to make prospects and customers feel understood and taken care of.
Integrity preserves the relationships because it promotes trust between customers and salespeople. People want to be able to rely on each other to make the same decision and to take the same action in the same set of circumstances.
They want to know they will get the same result from the same set of actions. Loyalty obliges customers and salespeople to be loyal to the relationship.
Principles of Customer Relationship Management
The principle of loyalty is used to allocate risk and rewards, burdens and benefits between customers and salespeople while always keeping the focus on what is best for the relationship. A revenue-maximizing solution that benefits only one party is not an example of loyalty. A solution that incurs the least costs for the relationship is a better example of loyalty. Equity is important to maintain harmony and trust in a relationship.
By defining equity, each party takes responsibility for keeping the relationship in balance. It obliges customers and salespeople to share the rewards in proportion to their contributions, resources invested and risks taken. It may prevent tensions from arising in the relationship because equity addresses inequalities that arise over time.