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CRM and Understanding Customer Centricity Approach
CRM and Understanding Customer Centricity Approach

CRM and Understanding Customer Centricity Approach

The goal of client-centric Customer Relations Management is to optimize customer value. Client centric approach treats relationship marketing as a continuous effort as opposed to treating it as a means to an end. Organizations that view Customer Relations Management as mere software end up automating business operations, instead of using the tool to optimize customer communications, transactions and improve their purchase experience.

The Client-Centric Approach

A client-centric approach to Customer Relations Management system uses customers as the axis around which all thought processes related to a business revolve. This notion is based on the belief that every customer is unique and so are his/her needs. In order to garner customer loyalty, enterprises should recognize this uniqueness, and customize their services and products to serve these needs. What is Customer Relations Management? It is defined as the practice of analyzing and utilizing marketing databases, and leveraging communication software to determine best business practices and methods that will create customer satisfaction, loyalty and your organization will keep existing customers and gain new ones.

Key Metrics for Customer Centricity

Since many companies are in business for profit-making, your business goal must be to maximize client value (both current and future) for your company's benefit. Customer value is calculated by each customer's contribution to the net profit of a company. Towards this end, ask yourself these questions.

• Can you gauge the lifetime value of a client?

• What is the link between client loyalty and profitable customers?

• Does customer loyalty always pay? If not, identify instances when it does not.

• How can you optimize your marketing efforts to get the most out of customer centricity?

Answering these questions will give your management team the basic ideas upon which to chart your marketing decisions and campaigns. Your marketing team will get a clear idea of when to profitably pursue customer loyalty and when to let go. They also pave the way for client identification and prioritization.

The Satisfaction-Profit Chain

Customer loyalty is one of the basic building blocks of a business' profitability and growth. However, loyalty heavily relies on customer satisfaction, which is in turn influenced by the value of services provided by your company. But the question is that how do your management team quantify customer loyalty? Well planned surveys or client response data collection methods are the most reliable means to measure loyalty.


Benefit of Customer Identification and Prioritization

Customer Relations Management software allows you to identify clients who are the most value to your company. Since these customers are loyal to you, you won't have to expand your budget on expensive loyalty programs to retain them. They are mostly happy with occasional prioritization for special treatment.

In summary, Customer Relations Management is not specific to any particular department within an enterprise. As people are the heart of any business, CRM in general and customer centricity, in particular, are the weft and the warp holding together the health of your organization.


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