What are the benefits of Customer Relationship Management?

Most of the organisations are investing in customer relationship management systems to forge a long term relationship with customers. The purpose of CRM is to encourage use of technology to study its customers and deliver maximum value to them.

• CRM helps understand the needs and wants of customers. This information is utilised to create an offering better than the previous one as well as better than the competitors.

• Increased efficiency through automation. CRM utilises various systems to maintain records of customers.

• Identifies customers who can be converted as loyal customers. By understanding the issues as well as suggestions of the customers, the management brings improvements on the inputs. When a customer feels valued it gives them a sense of satisfaction and they continue giving business to the organisation.

• It should identify the lost customers. For example, a cell phone carrier may identify the customer who has asked for cancellation of the services, a magazine can check the renewal rate of its existing customers. The marketers can work on reaching out to the lost customers as well by way of direct mail, etc. giving promotion offers, information on new launched products, improved products, etc.

• The inputs from the customers help in improving all the functions of marketing. Because of various other inputs, organisations are greatly benefitted in improving their promotion strategy, delivery operations, pricing of the products and services associated with the product.

• An improved product and improved associated services (warrantees, service centres, replacements, repairs, product parts availability, etc.) basis the inputs from the super consumer help gaining market share and counter competition.

• CRM helps in identification of loyal customers. The inputs from these customers helps an organisation understand its strengths and opportunities.

• A satisfied customer brings more business to the seller. Not only a satisfied customer continues giving business but also brings along new customers.

• Helps in growth of market share.

• Customers feel valued and are always ready to share their inputs to get a product or service suiting their needs and wants. Instead of organisation reaching out to its customers, a valued customer himself/ herself eagerly shares inputs with the organisation.

• CRM helps in increasing customer loyalty which is important for growth of business.

• Most of the innovations that happen in organisations takes place because of the inputs from loyal customers and not because of the R&D team.

Today organisations have realised that a loss of an existing customer is equivalent to gaining 4 new customer. Customers are more profitable the longer they keep giving business. CRM is based on this philosophy that customer loyalty is of utmost importance to the organisations success.