Customer Relationship management is the strongest and the most efficient approach in maintaining and creating relationships with customers. It refers to practices, strategies and technologies that companies use to manage and analyse customer interactions. According to a study conducted by Marketing Metrics, ‘ the probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20%. However, to sell to existing customers, the business should have existing customers.
Customers are any company’s biggest assets, thus talks about Customer Relationship Management (CRM) are being given utmost importance. It not only refers to carrying out business with the customers but also developing bonds on a personal level. Customer relationships are formed on the basis of the experiences a business provides to its’ customers. A pleasing experience leads to a long-term relationship adding to the value and reputation of a business. This further contributes to the growth and sales of the business. Building customer relations is the most practical of the customer retention strategies; the way in which a business builds a customer base and is able to serve and provide to its existing customers.
It is important to keep in mind that at any point of time, an unhappy customer can prove to be quite a liability as in today’s time and age its not difficult to share opinions and views through the medium of internet. Thus it is vital for business to turn their liabilities into assets by building strong customer relations and assessing all arising needs.
According to an article published by Forbes, in the year 2013, there are certain methods a business can adopt, in order to up their CRM game. Lets’ have a look at them.
- There is no such thing as over-communicating. – It is the responsibility of a business to keep their clients informed and updated at all times. This maybe concerning any new ventures, projects, decisions or even the bumpy roads the business is likely to encounter ahead. Effective and regular communication should be the top priority.
- Be a useful resource- A business is only as good as what it offers. The value offered by a business is what differentiates it from its competitors and helps retain customers. Ensure transparency in all matters and don’t hesitate to share information that the customers might find valuable.
- Be honest at all times – Honesty and integrity are two very important qualities of a business. When you are cent percent honest with your customers, it helps establish a foundation of trust and inculcates a greater sense of understanding. Even if a business if facing problems, it is the best to tell your customers and not keep them in the dark. Honesty is the key to a long-term relationship.
- Always meet your deadlines – Commitment is the cornerstone of success for any business. It is necessary to deliver as per the expectations of your customers. Meeting deadlines help manifest the image of a ard. It can make or break a business. If a business stays true on their word about delivering a product or service at a particular time, they are guaranteeing themselves a loyal customer base.
- Eliminate Surprises- An undesirable surprise is always unwelcomed. It is important to inform the clients about unforeseen glitches that might spring in.
- Think of clients as more than ‘’just clients’’ – Many businesses consider their clients aka customers to be a revenue generating stream or a money making machine. However, if the business relates to their clients on a more personal and individual level, the better is the likelihood of them creating stronger associations.
- Reward the loyal clients – Expanding the customer base and capturing new customers is as important as rewarding the existing ones for their loyalty and for sticking around. A business is fortunate if it has succeeded in establishing long-term customer relationships and thus existing customers should not be neglected. They should be bestowed with rewards for their faithfulness towards the business.
- Have a vision of partnership – A customer that has stuck to a business long enough during all its stages, has come to become a treasured partner and a contributing factor in its growth. It is necessary enough for the business to value this partnership.