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Customer Relationship Management CRM

November 29th, 2013 by

Customer Driven CRM

Customer driven CRM means that organizations first understand the customer, then move inward to operations.

  •  What will they buy, when, why and for how much?
  • What creates value for them, and does this create a structural bond?
  • What services can we perform that merit premium margins?
  • Can we establish a new market segmentation strategy focused on potential profitability and willingness to purchase?
  • Do we understand their business drivers, financial metrics, buying process and decision criteria?

A decade of CRM has taught us that nothing happens until your people interact with the customer in a manner consistent with new CRM customer strategies and systems.

And, finally, you should be well positioned to apply predictive modeling algorithms to establish a financial model with exceptional accuracy.

Not an easy task, but case studies are proving financial predictions that can demonstrate account-level forecasting with over 80 percent accuracy.

Summary

Here’s a simple framework for CRM:

  • Focus on financial results: Learn how to identify existing profitable customer segments and determine what will establish a profit-based profile for moving forward. Then develop the business requirements to support sustained, and structurally bonded, relationships.
  • Find cost effective alternatives for non-buyers or low-margin customers: Not all customer relationships are profitable and very few companies can afford to pay to deliver an equal level of services. Control costs and save your best resources for premium accounts—while working to bring low performers into an acceptable profit portfolio.

 

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