developing crm strategy

7/29/2019 developing crm strategy

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3rd unit

Developing CRM Strategy


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Introduction

A common mistake for many organizations is

to think of CRM in terms of isolated pockets of

technology. However, a successful CRM

program needs a proper strategy to knit it

together, make it cost-effective and focused.

This page outlines some key resources to help

your organization craft a successful CRMstrategy.


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Introduction cont

Your CRM strategy will aid your goals toacquire, grow and retain profitable customerrelationships to create a sustainable

competitive advantage. With this in mind, youmust remember without a doubt, customerloyalty is the key to profitability. This aspectmust be an integral part of your dealership's

strategy. Understanding customers'requirements is fundamental to businesssuccess.


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Introduction cont

Listen to your customers and then begin

developing your CRM strategy because if you

don't satisfy your customers, they won't come

back. And remember:

CRM isn't CRM unless it affects the customer's

experience

CRM is a strategy, not a project

CRM should improve ROI


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CRM IS STRATEGY, NOT JUST DATA

A key goal of CRM is to develop a view of the

client from all angles or areas of the company.

This means continually learning about your

clients.

Data obtained from each client interaction must

be electronically stored so it can be shared

among employees within your firm. This can be achallenge when there are high numbers of clients

or industries, the business is seasonal.


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CRM IS STRATEGY, NOT JUST

DATA cont

The simplest form of client data is contact

data. This includes full names and addresses,

as well as each persons position and role in

the decision-making process within the

clients business, such as buyer, influencer,

approver or gatekeeper.


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DATA cont.

Transactional data focus on historical events anddescribe the relationship with the client.

This information includes client activity outcomes suchas how and through what areas/departments your firminteracted with the client, what services the client haspurchased, and which sales pitches did not result inclient engagements.

It also includes the clients payment history and the

value of the overall account, and information on howfrequently the client contacts your company forservices and their latest engagement.


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DATA cont.

Properly processing these transactions will helpeffectively manage the client relationship.

This type of behavioral data will help youunderstand your clients personalities,preferences, needs, motivations andexpectations.

Finally, your firm must collect relationship data.Relationship data identifies interdependencies

and potential conflict issues. A critical source ofclient intelligence is what you know about therelationships in your firms network.


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CRM Strategy

1. Choose the right people

universal agents, able to handle virtually anyissue from standard customer care issues topast-due collections. Then, match top performersin each area to specific clients.

Universal agents can easily be identified by theircustomer service skills and a thick skin requiredfor past-due collections. Simply put, you can

teach a collections agent how to handle customercare, but customer care agents rarely have theskills needed to manage collections calls.


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CRM Strategy cont.

2. Provide up-front and ongoing training

Once identified, universal agents should receive specialtraining. They must have the empathy, bridging andnegotiation skills needed to open and close a customercare issue and negotiate and resolve a past-due billingissue often during the same call.

They must know how to change a customers paymentdue date, offer credits, or waive a service fee.

If the customer recently lost a job, the universal agentmust be able to show empathy and offer paymentalternatives.


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CRM Strategy cont.

3. Control customer service quality and

performance

With customer data and payment habits on

their screen the moment the call comes in,

universal agents can deliver a quality

customer experience by offering empathy and

sympathy while remaining firm enough tomeet the clients collection targets.


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CRM Strategy cont.

4. Leverage customer data to build

prevention strategies

When a customer gets his or her paycheck,

every company wants to be paid first. By

having the individuals payment, the universal

agent is better able to negotiate. They may

offer suggestions like: Can we change the duedate to better fit your needs?


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CRM Strategy cont.

5. Provide access to all customer contact

channels

More and more consumers and business people

are using non-traditional means forcommunications. Communicate in the medium oftheir choice. Employing a multi-channelapproach, the preventive collections program can

leverage or combine voice communications withother direct contact channels, including directmail, chat and email.


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CRM Strategy cont.

6. Deliver global consistency

Implement and enforce a set of operating

standards for all customer care and collection

interactions throughout your operation. This

will ensure equally trained agents with reliable

service to your clients around the world.


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CRM Strategy cont.

7. Provide motivation and incentives

Every client has different needs. When it

comes to motivating and incenting universal

agents, there are a variety of client-specific

compensation models. Earnings and

incentives can be based on cure and collection

rate measurements.


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CRM Strategy cont.

With this strategy, agents are able to engage

late-paying customers and gradually move

them away from the collections process, in

some cases permanently. Identifying andresolving past-due issues before the customer

reaches the collections stage is a proved.


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Role of CRM in business strategy

Shared customer knowledge.

Shared customer data ensures that each

customer interaction is handled with the same

degree of care while leveraging the same

information across all departments,

geographies and channels.


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cont.

360 degree consolidated customer view. The

achievement of a single, enterprise-wide view

of the customer relationship delivers one real-

time version of all customer information,eliminates duplicate data entry, reduces

systems integration complexity and empowers

staff with up to date knowledge andactionable customer insight.


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cont.

Repeatable processes. The adoption of CRM

automation software facilitates consistent

processes, process improvements and best

practices among all staff who use the softwareto become more efficient in their daily roles.


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Managing customer communication

Communication play a lead role in building

customer relationship

Communication management stands for

intensive interaction b/w customer & the

organization.


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Routes to CCM

1. Online routes

Interactive website

E-Mails

Web communication

Chat rooms


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Routes to CCM

2. Offline routes

Telephone

Fax

Face to Face interview

Mails

3. Outsourcing Private call center


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Factors affecting CCM

1. Nature of business

2. Size of organization

3. Number of customers

4. Types of customers5. Frequency of contact

6. Type of product

7. Technical support available

8. Extent of loyalty

9. Presale interaction required


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Method of CCM

1. Active method of CCM

In this method organization anticipates the

possible expectation of customers,& plan for

effective communication accordingly. It is

more direct method designed in tune with the

anticipated behavioral pattern of customers


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Method of CCM cont.

2. Receptive mode of CCM

In this method organization reacts suitably

after studying the Expectations, perceptions

& Behavioral patterns & the customer

interaction is tuned suitably

3. Indirect method of CCM

It is based on organizations own observation


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Specific skills for CCM

1. Skill to listen

2. Skill to tolerate

3. Skill to convince

4. Skill to advice

5. Skill to convert

6. Skill to educate

7. Skill to minimise fear, uncertainty, doubt.

8. Skill to add satisfaction

9. Skill to provide positive experience

10. Skill to recognise individually


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Specific skills for CCM cont.

11. Skill to correct

12. Skill to build emotional response

13. Skill to help

14. Skill to fulfill needs

15. Skill to make the customer feel important

16. Skill to keep up promise

17. Skill to be available

18. Skill to be honest

19. Skill to be Honest

20. Skill to respect sentiments21. Skill to respect Values

22. Skill to build confidence


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THANK U

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developing crm strategy