ROLE OF CRM IN CUSTOmer service
introduction
Customer relationship management is one of the strategies to manage customer as it
focuses on understanding customers as individuals instead of as part of a group
Managing customer relationships is important and valua!le to the !usiness The effective
relationship !et"een customers and !an#s depends on the understanding of the different
needs of customers at different stages The a!ilit$ of !an#s to respond to"ards the
customers% needs ma#e the customers feel li#e a valua!le individual rather than &ust part
of a large num!er of customers CRM manages the relationships !et"een a firm directed
to"ards improving and continuousl$ delivering good services to customers To
understand more in customer relationship management' "e first need to understand three
components "hich are customer' relationship and their management ()eppers and
Rogers' *++,- More often' managers al"a$s ma#e mista#es !$ seeing customers%
satisfaction from their e$e not from customers% e$e ()eppers and Rogers' *++,- .an#ing
sector is a customer/oriented service "here the customer is the 0E1 focus Research is
needed in such sector to understand customers% need and attitude so as to !uild a long
relationship "ith them Customer Relationship Management includes all the mar#eting
activities' "hich are designed to esta!lish' develop' maintain' and sustain a successful
relationship "ith the target customers CRM identifies the present and future mar#ets'
selects the mar#ets to serve and identifies the progress of e2isting and ne" services
Thus' CRM is a managerial philosoph$ that see#s to !uild long term relationships "ith
customers CRM can !e defined as the development and maintenance of mutuall$
!eneficial long/term relationships "ith strategicall$ significant customers (.uttle' *++*-
It is the esta!lishment' development' maintenance and optimisation of long term mutuall$
valua!le relationships !et"een consumers and the organisations Successful customer
relationship management focuses on understanding the needs and desires of the
customers and is achieved !$ placing these needs at the heart of the !usiness !$
integrating them "ith the organisation%s strateg$' people' technolog$ and !usiness
processes and its customers Managing customer relationships re3uires managing
customer #no"ledge CRM and #no"ledge management are
4efinition of Crm
• 5Customer relationship management is a comprehensive set of process and
technologies for managing the relationship "ith potential current customer across
the !usiness functions5
• 5Customer Relationship management is !usiness strategies that integrate people'
processes and technolog$ to optimi6e the relation of an organisation "ith all t$pes
of customers5
• 5CRM is a com!ination of process' procedure' technologies and competencies fit
to anal$6e and satisf$ customer #no"ing their needs and preferences5
In simple "ords7
5CRM is a comprehensive approach for creating' maintaining and e2panding
customer relationships5
The goal of CRM is to optimi6e customer satisfaction and revenue through
relationship !uilt "ith potential current customer across the !usiness function Its
goal also lies in optimi6ing customer satisfaction and revenue through the
relationship !uilt !et"een customer and all those "ho deal "ith the customers
The relationship is !uilt through managing customer initiative and !ehaviour in such
a "a$ that customer e2perience is full of comfort' happiness and satisfaction
CRM is a management approach or model that puts the customer at the core of an
organisation processes and practices It see#s to create' develop and enhance
relationship "ith carefull$ targeted customers to ma2imi6e customer value and
corporate profita!ilit$ The essence of CRM is to treat customer individuall$ and
offer them "ith customised product or service
NEE4 FOR CRM
a- To increase turnover "ith e2isting customers
!- To give e2cellent service using integrated information
c- To define ne" selling procedures and processes
d- To increase customer lo$al modern values
e- To assume a pro!lem solving approach
f- To design product as per specification s of customers that can !e o!tained through
feed!ac#
CRM in customer service
Customer service is the interaction !et"een a customer and the compan$' usuall$ via
traditional channels li#e phone or email Usuall$ the customer "ill have an issue
or some sort of re3uest that needs resolving The person could !e a prospective or
current customer
CRM is the strategic process implemented to maintain and retain the customer long
term This relationship development process is designed to improve customer
retention rates' thus reducing churn' increasing profita!ilit$ and reducing the
needs to focus so heavil$ on ne" !usiness for revenue gro"th
Customer Relationship Management concerns the relationship !et"een the
organi6ation and its customers Customers "ant to have their needs satisfied
Customer8s needs are distinctl$ different to and far !roader than a product or
service' and the features and !enefits encompassed
doc_316462546.doc
introduction
Customer relationship management is one of the strategies to manage customer as it
focuses on understanding customers as individuals instead of as part of a group
Managing customer relationships is important and valua!le to the !usiness The effective
relationship !et"een customers and !an#s depends on the understanding of the different
needs of customers at different stages The a!ilit$ of !an#s to respond to"ards the
customers% needs ma#e the customers feel li#e a valua!le individual rather than &ust part
of a large num!er of customers CRM manages the relationships !et"een a firm directed
to"ards improving and continuousl$ delivering good services to customers To
understand more in customer relationship management' "e first need to understand three
components "hich are customer' relationship and their management ()eppers and
Rogers' *++,- More often' managers al"a$s ma#e mista#es !$ seeing customers%
satisfaction from their e$e not from customers% e$e ()eppers and Rogers' *++,- .an#ing
sector is a customer/oriented service "here the customer is the 0E1 focus Research is
needed in such sector to understand customers% need and attitude so as to !uild a long
relationship "ith them Customer Relationship Management includes all the mar#eting
activities' "hich are designed to esta!lish' develop' maintain' and sustain a successful
relationship "ith the target customers CRM identifies the present and future mar#ets'
selects the mar#ets to serve and identifies the progress of e2isting and ne" services
Thus' CRM is a managerial philosoph$ that see#s to !uild long term relationships "ith
customers CRM can !e defined as the development and maintenance of mutuall$
!eneficial long/term relationships "ith strategicall$ significant customers (.uttle' *++*-
It is the esta!lishment' development' maintenance and optimisation of long term mutuall$
valua!le relationships !et"een consumers and the organisations Successful customer
relationship management focuses on understanding the needs and desires of the
customers and is achieved !$ placing these needs at the heart of the !usiness !$
integrating them "ith the organisation%s strateg$' people' technolog$ and !usiness
processes and its customers Managing customer relationships re3uires managing
customer #no"ledge CRM and #no"ledge management are
4efinition of Crm
• 5Customer relationship management is a comprehensive set of process and
technologies for managing the relationship "ith potential current customer across
the !usiness functions5
• 5Customer Relationship management is !usiness strategies that integrate people'
processes and technolog$ to optimi6e the relation of an organisation "ith all t$pes
of customers5
• 5CRM is a com!ination of process' procedure' technologies and competencies fit
to anal$6e and satisf$ customer #no"ing their needs and preferences5
In simple "ords7
5CRM is a comprehensive approach for creating' maintaining and e2panding
customer relationships5
The goal of CRM is to optimi6e customer satisfaction and revenue through
relationship !uilt "ith potential current customer across the !usiness function Its
goal also lies in optimi6ing customer satisfaction and revenue through the
relationship !uilt !et"een customer and all those "ho deal "ith the customers
The relationship is !uilt through managing customer initiative and !ehaviour in such
a "a$ that customer e2perience is full of comfort' happiness and satisfaction
CRM is a management approach or model that puts the customer at the core of an
organisation processes and practices It see#s to create' develop and enhance
relationship "ith carefull$ targeted customers to ma2imi6e customer value and
corporate profita!ilit$ The essence of CRM is to treat customer individuall$ and
offer them "ith customised product or service
NEE4 FOR CRM
a- To increase turnover "ith e2isting customers
!- To give e2cellent service using integrated information
c- To define ne" selling procedures and processes
d- To increase customer lo$al modern values
e- To assume a pro!lem solving approach
f- To design product as per specification s of customers that can !e o!tained through
feed!ac#
CRM in customer service
Customer service is the interaction !et"een a customer and the compan$' usuall$ via
traditional channels li#e phone or email Usuall$ the customer "ill have an issue
or some sort of re3uest that needs resolving The person could !e a prospective or
current customer
CRM is the strategic process implemented to maintain and retain the customer long
term This relationship development process is designed to improve customer
retention rates' thus reducing churn' increasing profita!ilit$ and reducing the
needs to focus so heavil$ on ne" !usiness for revenue gro"th
Customer Relationship Management concerns the relationship !et"een the
organi6ation and its customers Customers "ant to have their needs satisfied
Customer8s needs are distinctl$ different to and far !roader than a product or
service' and the features and !enefits encompassed
doc_316462546.doc