CRM (Customer Relationship Management)

CRM (Customer Relationship management) is all about the theory used by companies to administer and manage their customers, partners, vendors and other stakeholders efficiently.

Features of CRM

CRM is made up of three key features, which are Operational CRM, Collaborative CRM and Analytical CRM.

* Collaborative CRM is to directly communicate with customers without inclusion of any sales or service representatives.
* Analytical CRM is to investigate customer data for a vast range of reasons and functions.
* Operational CRM deals with providing complete front office support to sales, marketing and similar services.

The communication with the customers is recorded and added to the customer’s contact history database and can be easily retrieved for future reference. The biggest benefit about maintaining this contact history is that the customers can easily contact with the service personnel without having to repeat any of the earlier communication or information.

That is why CRM software is used popularly in call centers or BPOs for supporting the call center staff.

Direct interaction is carried out with collaborative CRM that includes feedback from the customers and reporting of issues if any. This interaction can be carried out through a variety of channels like email, phone, SMS, etc. The main objective behind going in for collaborative CRM can be reducing the company costs and improving the services provided.

Analytical CRM finds multiple uses such as taking management decisions, predicting future trends, analyzing customer behavior, planning and executing marketing campaigns and much more.

Operational CRM is mainly concerned with automating customer processes and providing appropriate support to these services.

CRM is not just a mere technology; it is in fact the move towards handling your customers better and more efficiently. The top management should tap CRM’s complete potential to maximize the benefits for their respective organization.

Consider this. Executives’ compensation packages are often based on salary and bonuses which are paid out in stock options. The stock options are often so lucrative that the salary looks infinitesimal by comparison. The executive is then motivated to, above all else, see the stock prices go up even if it means alienating customers or even bankrupting the company. When the stock goes up the Executive sells it. Some companies have tried to curtail these practices by disallowing the sale of stock by employees. Of course then the motivation becomes to inflate the stock as much as possible, even temporarily, quit, then sell the stock.

So how does this reflect in Customer Service Performance? A company whose KPI are primarily incentive based will usually infuse that philosophy throughout the corporate structure. Thus Customer Service becomes as incentive based as the CEO’s stock options or the commission paid to the sales staff.

An order comes down from the executive offices that no call should take longer than 7 minutes to complete or that Call Center employees’ bonuses are based on clearing the maximum number of calls quickly and “efficiently.” That’s fine until a major issue comes up that takes longer than 20 minutes and then, suddenly the previously helpful call center rep is doing everything possible to hustle the caller off the line. Soon the call center reps are hanging up on customers in order to inflate their calls/shift ratio.