How to use technology in customer relationship management

Gaining a detailed understanding of your customers is vitally important to the long-term profitability of any company.

Around two-thirds of customers stop buying from a company simply because the business is indifferent to their needs, and customers rarely return to a company they have abandoned. Research has also shown that only around four per cent of customers contact companies about problems or complaints, so your business could well have a steady drain of customers you are simply unaware of.

Sophisticated

How can this be avoided? One way is to use a customer relationship management (CRM) system: a sophisticated data mining program which is able to give unprecedented levels of information about customer habits.

CRM systems help keep track of clients and potential leads, highlighting key dates and reminding of important facts so that communication is more effective.

An integrated CRM system can offer a 360-degree view of customer experience through sales history and interaction data. In addition, cloud-based applications provide the ability to update and access information on a real-time basis. Immediate access to this level of information means a company can effectively interact with customers on a targeted and personal level, giving them a better chance of fostering a loyal client base.

As the cost of CRM systems has come down, they have become within reach of even the smallest organisation. Small and medium-sized enterprises should use a CRM system to focus on two basic concepts: Know Your Business and Know Your Customer. 

Flexible

The relationship between companies and their customers has changed irrevocably. Customers now hold the power and they expect to be able to make their voice heard by sharing their experiences with the world online. The Institute of Customer Service (ICS) has revealed that younger consumers are increasingly inclined to demand a Facebook or Twitter link with the brands they buy. Modern CRM systems offer tools and apps for integrating with social media and external databases, providing a set of powerful utensils that previously were only available to large businesses.

Defection

Customer drift or defection can occur for a number of reasons, but the ICS has shown that complaints are a major contributing factor – and there are still many UK businesses which fail to handle them effectively. 

21st century consumers increasingly turn to social networking sites to share their thoughts about products and services and if it is a complaint, their frustrations could be viewed by millions of other consumers around the world. Providing an online space to allow customers to post comments opens up a line of communication between the organisation and its customers, which if handled correctly can help build stronger relationships and enhanced customer loyalty.

Ensuring a close personal relationship is developed and, more importantly, maintained is vital, With a plethora of CRM platforms available, including Salesforce.com, SAP, Microsoft Dynamics, SugarCRM, Maximizer and ACT!, any size of business can now use these systems to deliver high levels of customer service. Implemented and utiltised correctly, a CRM system is an essential business tool.