Customer Relationship Management
What is Customer Relationship Management?
Customer Relationship Management (CRM) is the relationship between a business and its customers. Customers are the lifeblood of any busines whether they are large corporate entity or a sole trader with a handful of regular customers.
The key factors of CRM
Successful busiensses use four key steps to build customer relationships:
- Determine mutually satisfying goals between the business and its customers
- Establish and maintain customer rapport
- Produce positive feelings in the organization and the customers
- Encourage frequent communication with the customer in an appropriate manner
Benefits of good CRM
Obviously a happy customer is more inclined to do repeat business with you and introduce new customers to you which will be better for your bottom line. Unlike advertising where you try to attract NEW customers, CRM is about maintaining and impoving relationships with your EXISTING customers which is not only easier, but more cost effective.
It is a well proven fact of marketing that it will cost you 3 times as much to attract a new customer as it will to keep and retain an existing customer, so it makes good financial sense too.
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