Why is CRM important in today's business environment

Hi All .. Before jumping directly to learn Siebel …. Lets just get familiar with the term CRM and why it’s important in today’s business environment.

The concept of Customer Relationship Management has been around since the start of business. Only over the last few years has CRM started to be used as a buzz word defined by software manufactures. Some CRM tools manage sales & leads, some are used for customer service, most are do not fully encompass the idea of Customer Relationship Management. I urge companies to make full use of the tools available, but don't be limited by them. Keep the focus on your goals.

Goals of a Customer Relationship Management Plan

1. Increase customer retention
2. Increase company profits
3. Better serve the customer / increasing competitive advantage
4. Build and maintain a relationship with your customers, so that you know their current and future     needs and can incorporate trends into your strategy.
5. Manage leads through the sales pipeline by creating a relationship

Please refer the below Diagram

 

There are there important phase in CRM Life cycle

·         Acquire

·         Retain

·         Extend

A good CRM system focuses in acquiring customers and retaining most of them so as to extend the business. Studies consistently show that it costs 8 times more to cultivate a new customer than to keep an existing one. A good CRM plan that focus on retention of customers will make your business more profitable…Guaranteed!

Most companies find that using a good software tool as part of their CRM plan will create a ROI within 3 months of implementation. This is do to increased efficiency, more repeat business, increased referrals, and faster invoicing.