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relationships with them. As such it is more of a business philosophy than a technical solution to assist in dealing with customers effectively and efficiently. Nevertheless, successful CRM relies on the use of technology. This guide outlines the business benefits and the potential drawbacks of implementing CRM. It also offers help on the types of solution you could choose and how to implement them.
Why CRM? Business benefits of CRM Types of CRM solution How to implement CRM Potential drawbacks of CRM Questions for CRM suppliers
Why CRM?
In the commercial world the importance of retaining existing customers and expanding business is paramount. The costs associated with finding new customers mean that every existing customer could be important. The more opportunities that a customer has to conduct business with your company the better, and one way of achieving this is by opening up channels such as direct sales, online sales, franchises, use of agents, etc. However, the more channels you have, the greater the need to manage your interaction with your customer base. Customer relationship management (CRM) helps businesses to gain an insight into the behaviour of their customers and modify their business operations to ensure that customers are served in the best possible way. In essence, CRM helps a business to recognise the value of its customers and to capitalise on improved customer relations. The better you understand your customers, the more responsive you can be to their needs. CRM can be achieved by:
finding out about your customers' purchasing habits, opinions and preferences profiling individuals and groups to market more effectively and increase sales changing the way you operate to improve customer service and marketing
Benefiting from CRM is not just a question of buying the right software. You must also adapt your business to the needs of your customers.
A major benefit can be the development of better relations with your existing customers, which can lead to:
increased sales through better timing due to anticipating needs based on historic trends identifying needs more effectively by understanding specific customer requirements cross-selling of other products by highlighting and suggesting alternatives or enhancements identifying which of your customers are profitable and which are not
This can lead to better marketing of your products or services by focusing on:
effective targeted marketing communications aimed specifically at customer needs a more personal approach and the development of new or improved products and services in order to win more business in the future
enhanced customer satisfaction and retention, ensuring that your good reputation in the marketplace continues to grow increased value from your existing customers and reduced cost associated with supporting and servicing them, increasing your overall efficiency and reducing total cost of sales improved profitability by focusing on the most profitable customers and dealing with the unprofitable in more cost effective ways
Once your business starts to look after its existing customers effectively, efforts can be concentrated on finding new customers and expanding your market. The more you know about your customers, the easier it is to identify new prospects and increase your customer base. Even with years of accumulated knowledge, there's always room for improvement. Customer needs change over time, and technology can make it easier to find out more about customers and ensure that everyone in an organisation can exploit this information.
the in-house skills necessary to tackle the job from scratch. It is also a good solution if you are already geared towards online e-commerce. Off-the-shelf solutions Several software companies offer CRM applications that integrate with existing packages. Cutdown versions of such software may be suitable for smaller businesses. This approach is generally the cheapest option as you are investing in standard software components. The downside is that the software may not always do precisely what you want and you may have to trade off functionality for convenience and price. The key to success is to be flexible without compromising too much. Custom software For the ultimate in tailored CRM solutions, consultants and software engineers will customise or create a CRM system and integrate it with your existing software. However, this can be expensive and time consuming. If you choose this option, make sure you carefully specify exactly what you want. This will usually be the most expensive option and costs will vary depending on what your software designer quotes. Managed solutions A half-way house between custom and outsourced solutions, this involves renting a customised suite of CRM applications as a tailored package. This can be cost effective but it may mean that you have to compromise in terms of functionality.
With information collected and stored centrally, the next stage is to make this information available to staff in the most useful format. Stage 4 - Analysing customer behaviour Using data mining tools in spreadsheet programs, which analyse data to identify patterns or relationships, you can begin to profile customers and develop sales strategies. Stage 5 - Marketing more effectively Many businesses find that a small percentage of their customers generate a high percentage of their profits. Using CRM to gain a better understanding of your customers' needs, desires and self-perception, you can reward and target your most valuable customers. Stage 6 - Enhancing the customer experience Just as a small group of customers are the most profitable, a small number of complaining customers often take up a disproportionate amount of staff time. If their problems can be identified and resolved quickly, your staff will have more time for other customers.
Don't underestimate how much data you will require, and make sure that you can expand your systems if necessary. You need to carefully consider what data is collected and stored to ensure that only useful data is kept. You must also ensure you comply with Qubecs An Act respecting the protection of personal information in the private sector. Avoid adopting rigid rules which cannot be changed. Rules should be flexible to allow the needs of individual customers to be met.
How long has the supplier been established? What are the specific costs associated with the product, i.e. a one-off purchase price, an annual renewable license, a charge per user etc? Does the supplier offer any form of evaluation software so that you can try before you buy? How much is charged for technical support? Does the supplier provide consultancy and, if so, at what rates? Is the system scalable? If your customer base grows will the system expand to cope? Can the supplier recommend any third-party developers that make use of their core CRM products? Is there an active independent user group where experience and ideas can be freely exchanged? Can the supplier provide references for businesses in your industry sector using their software? Does it offer training in the CRM solution and, if so, at what typical cost?
Original document, Customer relationship management, Crown copyright 2009 Source: Business Link http://www.businesslink.gov.uk/ Adapted for Qubec by Info entrepreneurs
Company Perspectives: At The Children's Place, we are committed to creating a true lifestyle brand for kids. We are proud of
what we have achieved and very excited about our future. Our success to date is due to our steadfast commitment to our core values: Quality that our customers have come to expect: Service on our customers' terms; style that fits our customers' needs; prices that won't strain our customers' budgets.
Key Dates: 1969: First Children's Place store opened. 1982: Founders sell chain to Federated Department Stores. 1988: Money-losing chain sold to investor group led by Dabah family. 1993: Firm restructured to handle debt. 1997: Company sells shares to public.
Company History:
The Children's Place Retail Stores Inc. operates a chain of children's clothing stores across most of the United States. Its products are designed for children aged newborn to 12. It sells under its own 'The Children's Place' brand name. In the competitive children's retail market, The Children's Place offers prices significantly lower than principal brand name competitors. Most of the chain's stores are in malls, with a mix of upscale and more down-market sites. A pair of entrepreneurs started the company on the east coast, and it gradually spread west and south. By the year 2000 The Children's Place had close to 400 stores in 42 states, with plans to expand rapidly. In 1981, the founders sold it to the retail empire of Federated Department Stores. The company is now publicly owned, with about a third of the stock in the hands of CEO Ezra Dabah and his family.
The Children's Place creates freshness in its stores by introducing seasonal merchandise lines throughout the year. Each store offers spacious, bright and airy shopping that is a friendly and convenient atmosphere for both children and adults. Each shop is clearly identified and dedicated to serving the needs of Girls and Boys (sizes 4-14), Baby Girls and Boys (sizes 6 mos.-4T) and Newborn (sizes 0-12 mos.). Display racks and shelves are neatly arranged to distinctly separate each department and provide easy viewing of the latest collection available. Customers also are able to shop at their convenience in our online store, www.childrensplace.com. What's most important to us is keeping customers happy. Through our knowledgeable sales associates, we provide the best in customer service and ease of shopping. Our flexible return policy allows our customers to shop risk-free. A toll-free customer service number, 1 877 PLACE USA, answers specific customer queries or directs customers to the nearest store location. We love kids and our commitment to the welfare of children continues to be an important endeavor. We proudly support many national and local charities that focus on improving the lives of children. Acknowledged as an innovator and leader in the retail industry for kids ages newborn to 10 years, we design, contract to manufacture and sell our products under the "The Children's Place" brand name.