Service Quality
CRM helps in many internal projects of the company such that it provides effective measures for the inclusive growth of the company. A CRM system is designed in a way which is friendly and easy to use and deploy business strategies to the employees of the company without complicating the functionality of the company and its management. It helps employees to easily understand the queries of customers and provide necessary services according to individual problems.
Table of Content
Small companies may include CRM to expand the business and increase the capabilities of employees to provide a better solution. Similarly, large companies may include CRM to create effective programme for complex projects with multiple problems. It, thus, Quick Revision helps in providing a proper reform for any kind of difficulties. The company by adopting CRM may deliver better services time to time to its customers for their better satisfaction.
One of the primary goals of a business is to understand its customers’ needs and wants in order to provide targeted service, targeted satisfaction and targeted profit. Having knowledge of what customers expect is the first and the most crucial aspects of quality service delivery. Service quality is a measure of service delivery against customers’ expectations.
Analytical CRM uses historic data reports for analysis and enables the management to take decisions on ‘what should happen’. These decisions are not day-to-day operational decisions but are strategic decisions that affect a business as a whole.
For example, analytical CRM includes service reports that aggregate information from polls, customer sentiment analysis, and other channels to find out the level of customer satisfaction. This enables the management to work on customer service offering as well as direct resources to the right places. Also, it enables the management to break down service costs and work on the balance between service costs and revenues earned.
Customer Satisfaction and Loyalty
Customer satisfaction shows the approval of the customer towards the company and its products. It also measures the level of happiness of a customer with the company interaction and product delivery. A company’s research management must show the satisfaction of the customer which lead to great customer retention. Customer satisfaction leads to stronger and healthier relation between the company and its customer.
How a Company Measures Customer Satisfaction?
As you are all aware, it is critical for a company to grow and progress. This is done by gaining customer satisfaction. But then it is important to know how a company measures customer satisfaction. It is important to observe customers’ behaviour and their demand for the same product. If a company finds that the there is a repeat purchase of the items then it can be related to customer satisfaction.
A company’s market interaction may help in checking customer purchasing and repeating again. This is a positive experience of the company and a measure for customer satisfaction. To boost customer satisfaction, the company must focus on long term and persistent quality and interactions to maintain customers for better experience with the company.
Customer loyalty, on the other hand, is related to the long-term satisfaction of a customer. To be more precise short-term satisfaction with better management by the company is the key to achieve loyalty. To achieve customer loyalty, the company must improve company’s responses and support. A company achieves the loyalty of the customer when it tries to resolve customer related problems on time and providing a quick support to the queries of the customer.
Excellent customer service results in better customer satisfaction and loyalty. A loyal customer will always support company’s programs and will purchase regularly from the company. Therefore, it is important to improve customer satisfaction by asking customer feedback and providing customer-focused culture.
Suppose you are the head of a business or its sales and marketing arm. Wouldn’t the prospect of achieving better conversion rates, at lower costs while simultaneously increasing the profits, seem exciting? To put simply, that is exactly what a good analytical CRM is capable of. Getting new customers and retaining them is the key to the success of businesses.
Businesses always keep on researching and thinking about new ways to increase revenue. But, often, an excessive focus on acquiring newer sources of revenue results in the failure to effectively address the need for improving customer relationships and experience, which is the key to build long-term loyalty.
Figure shows how CRM helps in achieving high customer satisfaction levels and customer loyalty, which ultimately leads to improved business performance:
Customer Satisfaction
This is the most obvious way to ensure customer retention. Analytical CRM helps in identifying key variables, such as purchase patterns, product usage and service calls. By doing so, capture the signals of impending customer departures so that you can put in place specific measures to improve the situation.
For example, when a customer emails a business about a missed shipping deadline or receiving the wrong product, the analytical CRM platform can created an automated, immediate “We’re on it” response. This can make a customer satisfied by feeling valued.
Customer Loyalty
One of the many features of analytical CRM is to identify high-performing customers, study their purchase behaviour and use the information to pursue similar clientele by following similar techniques.
It is highly important that long-term customers are rewarded for their support because according to a market research analysis report, the cost of retaining high-performing customers is considerably lower than that of pursuing newer ones. To do so, analytical CRM helps businesses in many ways. For example, analytical CRM can send an auto email to customers on their birthdays with a special discount.
Business Performance
Increased levels of customer satisfaction and loyalty leads to high customer retention; thereby increasing revenues and improving business performance.
Company 3E Measures
In a company no matter of what size and nature must have guideline which is to be followed for better performance. It includes three important measures which not only build the company’s internal structure but also helps in deploying better services to its customers and improving the performance of the company.
These measures are efficiency, effectiveness and economy of the company. Combined these measures are known as 3E. Analytical CRM is a solution-focused collection of applications that are designed to work in harmony with these three measures of the company. Let us discuss them as follows:
Efficiency
In literal terms, efficiency means making use of inputs in such a way that it generates maximum output. It includes efforts made by the employees to make a judicious use of inputs. Businesses keep on searching ways to improve efficiency because greater productivity means more growth, fewer costs and more sales.
Analytical CRM enables organisation to achieve higher efficiency. For example, analytical CRM enables a business to manage leads more effectively by prioritising them in order of validity. A strong lead will be right at the top of the list, so that it can be followed up immediately, whereas a weak lead will be placed further down the list. By assessing the quality of the lead, a business can be more productive, since more time will be spent focusing on those who are genuinely interested in making a purchase.
Effectiveness
Effectiveness means working on the right things, which means carrying out activities that drive business value and focus on company goals. Analytical CRM also contributes largely in achieving high effectiveness of a company. For example, analytical CRM suggests the most appropriate products for customers by analysing existing data and turning it into productive sales strategies.
Economy
Economy is related to the finance aspect of an organisation. It is measured by looking at the cost of resources consumed and the value of the output delivered. Analytical CRM play major impact on the financial performance of a company.
For example, CRM can lead to higher sales volume as a result of strengthening relationships with profitable customers, selling higher margin products, increasing the firm’s share of the customer’s expenditures for the products/services sold, and/ or improving the mix, that is, aligning services and the costs to serve. Cost of goods sold can be reduced, as a result of the better planning that comes from collaboration with customers. Cost savings occur due to fewer last-minute production changes and, less expediting of inbound materials and shipments to customers.
Effectiveness and Employee Change
As discussed above, brining effectiveness through CRM involves doing right things, which ultimately brings changes in common work practices. This, in turn, requires flexibility among employees who may be hesitant about the new advancements in CRM technology. Negative and unproductive attitude will lead to downfall of the company, whereas positive attitude will contribute in the upliftment of the company’s business.
It is important to observe the performance of employees to ensure that the changes carried out are in a right direction and will carry out the business smoothly. This is because failing change initiatives are not only a waste of money, but they also put the company’s relationships with customers at risk. For better acceptability of changes, a company needs to take steps towards its employees.
For example, in changing work practices, a company may need to redefine employee roles and align their strategies toward customer service plans. Apart from that, it is of utmost importance to communicate the reason for a particular change to employees and ensure them how new CRM can solve their current problems.
