Customer Relationship Management (CRM) Best Practices for 2011
Every company needs customer relationship management (CRM) – a focus on finding new customers and retaining old ones, and enhancing the experience of both. In 2011 we will see an even greater focus on customer relationship management than ever before as technology brings us in closer contact with our customers. Customer service is no longer confined to the help desk or the phone line; countless customers and potential customers come in contact with our business online every day. Even automated processes need to include a focus on CRM these days.
Many companies that try to implement changes in their CRM procedures find themselves unsuccessful. They end up following leads which lead nowhere or losing money on their new procedures instead of making more money. What are some of the pitfalls that can account for poor CRM results?
The number one reason that CRM plans fail is that the company forgets to keep its focus on its goals. It is easy to get caught up with strategies to enhance your business and actually forget about your bottom line. Is what you’re doing actually leading to higher profits? Or are you spending so much money attempting to re-design your customer service that you’re actually making your business less profitable? Are you focusing too hard on increasing your numbers – new impressions, visitor length on your websites, etc. – and not enough on the number which counts most, your profits?
What you do with your CRM needs to save you money and it needs to make you money.
The second biggest reason for CRM failure is not giving your employees time and means to adjust to the changes in how you’re doing business. Your plan is only as good as its implementation and even the best plan can fall short of its goal if your employees don’t have a clear understanding of how to carry it out. Spend some time on training and your results will improve.
What are some areas you can focus on to improve your CRM?
Ensure that your customers can reach you through multiple channels with ease. This can have an enormous impact on your bottom line. Focus on bringing your CRM procedures into full force in front office interactions. Remember that in the modern era, the front office no longer just refers to a physical space, but also your presence on the World Wide Web. Social networking is a particularly significant method of reaching customers; it’s a great place to find leads and also to keep in touch with your old customers. Again though, it’s important to iterate that following leads can be distracting and lead to a lack of focus – don’t give in to this temptation. If your lead-following tactics are generating a higher bottom line, stick with them. If they aren’t, it’s time to revise your plans. Retaining current customers should always remain a priority; it costs your company less and they are more likely to buy again than any single individual elsewhere is to purchase for the first time. Utilize the web to streamline customer experience by offering customers the ability to engage in eCommerce with you. The software you use, even though it’s automated, should be considered part of your CRM plan. It should simplify the customer’s experience and offer transparency. Online shops cost almost nothing to maintain and can bring in incredible revenue. Make it easy for customers to provide you with feedback; welcome their suggestions and questions and always respond in a timely manner to their requests.
CRM is a critical component of any business plan. Most CRM failures are due to poor focus. So long as you keep your goals in clear view and ensure that your customer service tactics are directly impacting your net profits, you will succeed in Customer Relationship Management in 2011.
After spending time at firms specializing in both traditional and interactive marketing, Spencer recently started his own company, Lumin Internet Marketing. Lumin provides an array of online marketing services including search engine optimization, social media marketing, and online public relations
