CUSTOMER RELATIONSHIP MANAGEMENTASSIGNMENT

SUBMITTED BYNITIN TYAGIENROLLMENT NO: - 007MBA 4TH SEMCUSTOMER RELATIONSHIPIn CRM the alphabet R means relationship. But there is always an ambiguity to understand the actual meaning of this relationship. This relationship between supplier and customer is not a personal relationship or a one-time transaction relationship; for example buying a refrigerator from a consumers outlet would not be called as a relationshipRelationship between any two parties is actually the interaction or transaction done between the two over-times or consists of a continuous series of synergistic episode of interaction many a times. This relationship only exists when the two parties diverge from a state of autonomy to mutual or interdependent. Occasionally having a cup of tea from a caf does not mean that there is a relationship. If the customer returns to the caf and orders the same tea again because he likes the environment and taste or the method of making tea, more looks like a relationship.Relationship with customers can change from time to time because it is evolved under distinguished situations. Following are the stages from where the relationship with customers can evolve:- Exploration- Exploration is the process when customer investigates or tests the suppliers capabilities and performance or cross verifies the products or brands usefulness. If the test results fail to satisfy customers demands, the relationship can drastically come to an end. Awareness- Awareness is the process when the customer understands the motivational values of supplier or the products he sells. Expansion- Expansion is the process when the supplier wins customers faith and customer falls under huge interdependence of the supplier. This is time when there are more chances of business with that particular customer and expand business. Commitment- Commitment is a powerful stage when suppliers learn to adapting business rules and goal to excel. Dissolution- Dissolution is a stage when customer requirement suddenly changes and he looks for better perspectives. This sudden change is the end of relationshipRelationship can come to an end due to many reasons like - customer is not satisfied with the services of supplier or customer diverges to other better brands and products. Suppliers can also prefer to break relationships due to customer failing to be a part to increase sales volume or when the suppliers are entangled with fraud casesBroadly there can be two distinguished attributes of a developed relationship between supplier and customer:-1. Trust- Trust means confidence and security in any relationship and can be treated as the biggest investment in building long term relationships. Trust is developed between the two parties when they experience flawless and satisfied motives between each other. As a result of knowing more about each other, all the doubts and risks are minimized and leads to inevitably smooth business. Lack of trust on the other hand weakens the relationship foundation and chances of uncertainty and conflicts increases. 2. Commitment- Commitment is yet another milestone that should be achieved to set a long term mutual relationship. Commitment can only be attained when there is mutual trust and the two parties share each others values. In a committed relationship both suppliers and customers strive to uphold the relationship and never want to exit which in turn results in building the relationship stronger and sharper. There is, in fact, huge cost which is incurred in switching from committed relationships of one supplier and build new relationships with other suppliers from scratch. Relationship is always mutual or reciprocal so it is important for both supplier and customers to stick to common guideline to attain better relationship among each other. There is lot of involvement of cost, efforts and time in striving developed relationships between the two parties but the outcome is always inevitableCRM enables businesses to control how they interact with their customers, from receiving sales figures and data to finding out their views about the company enabling them to improve products and services as well as provide more efficient communication and customer service when needed.Top 10 CRM Principles1. CRM is more than just softwareCRM may in theory, be a piece of software, but for businesses, it can be a crucial tool for helping them to improve. Using CRM requires strategy and knowing what it is that you want to gain from using it, why is why it isnt just something you can install and hope it will do the hard work for you.

2. Effective Analysis is CrucialCRM software will provide your business with a whole host of data about your sales and your customers. Knowing how to analyses these figures are crucial as well as working out what you will do with them. The data collected from CRM can help you both in the present and in the future and help you identify weak/strong points in your products in order to make changes or push what sells the most.

3. Customer Focus is ImportantThe clue is in the title Customer Relationship Management. Whilst you are ultimately looking to improve your sales, you wont be able to do so without understanding your customers.Businesses can benefit greatly from interacting with their customers. Use the data gathered from CRM to give something back to your customers and in turn youll get something back from them. By valuing and rewarding your customers youll experience better customer loyalty which will continue to produce pleasing results for your sales.

4. CRM is a Continuing ProcessWhilst yes, some businesses use CRM in the short term to promote specific products and services, CRM should be used continuously in order to see continued results. The needs and wants of customers will continue to change and so it is important that your business continues to change and grow as well in order to keep them loyal to your business. Setting short term and long term goals can help you to develop CRM strategies that will continue to produce results.

5. Use it Across Your Entire BusinessLets say for example, you owned a clothing line. By implementing CRM right through from the design process (by taking not of what your customers like, colours they prefer, which prices theyre most likely to buy at and putting this thought into your designs), right through to customer service (using CRM data to deal with queries quicker and more efficiently), you will have a streamlined, customer focused business which works at all levels to improve their experience and encourage them to continue to use your business.

6. Use CRM to Establish What Your Customers Need & How You Can Hive it to ThemYour customers will want you to be reliable, accessible, offer them security, efficient, considerate, responsive and innovative. CRM data mining can help you to improve on all of these points and most of all, improve the two way communication between you both.

7. Involve all of Your EmployersEveryone from management right down to your administrative team needs to be aware of your CRM activities and how it affects their work. You could offer incentives based on data gathered from CRM in order to motivate your staff, as well as identify key areas for training and development. The better your staff know your customers, the better they can all work towards building better relationships with them.

8. React to Your FindingsIts all very well collecting data about your customers and their views, but if you dont react and respond to these finding you wont see any improvement in your business. A good way to get a deeper insight into your customers feelings could be to engage them through social media, for example, and actually ask them about how they use and what they would like to see from the brand. You can also push promotions, offers and giveaways and so on as rewards for interacting with you via your Facebook or Twitter page for example, as many online retailers do.

9. Choose the Right ProviderChoosing the right CRM provider is crucial for ensuring your success with this venture. Shopping around for the right provider as well as speaking to friends, colleagues and observing your competitors techniques can all help you in choosing the most suitable provider for your company. Mae sure that you choose a provider who understands your unique needs and gets your business. Expert Market UK can also help you narrow down the choices.

10. Simplicity is KeyAt the end of the day, customers want their shopping experiences to be as simple as possible (take Amazon as an example). Customers want to be able to see all of the information that they need as well as be able to contact you easily when needed. You can identify how to do all of this using CRM in order to make the customer experience even better than they expect.By following the above principles, youll be sure to employ successful CRM strategies for your business and hopefully develop better relationships with your customers as well as strengthening your business practices