CRM - AN OPPORTUNITY PROVIDER
Dr. K. Elangchezhian & D. Malmarugan

The other day, while watching the final of an important tournament in which the home team was in a winning situation., rain played spoilsport. A much deserved victory was denied. Pondering over it,reality struck me. Only opportunities to succeed are provided, there is no foolproof way to success.

CRM the mantra chanted nowadays is providing only an opportunity to succeed. Customer relationship management is the business philosophy of maintaining a collaborative relationship with customer for sustainable development.
The prohibitive cost of acquiring customer lead to developing ways & means of understanding the ever changing needs of customers in order to keep competition at bay.

It is the basic question of company's product offerings providing a bundle of benefits so that the customer needs are satisfied. So your company's product should be having something unique that makes the customer think - it is different! Thus having features that differentiate your product & services from those of your competition. Then comes the stage of creating an unique position in the in the customer's mind. Positioning and brand image building through communicating appropriate messages so that the customer develops a favourable intent to purchase the product.
Now where does the new mantra CRM fit in to get the company maximum profits. It is basically developing & maintaining relationship With the customers. Giving the customers enough reason to buy your company's product & services on a continuous basis. Understanding the need of customers is always the crux of the issue . The customer's needs for related products are identified so that a group of needs are satisfied by offering a package rather than individual products.

Thus when a customer buys a two wheeler, he wants his transportation need to be satisfied. so, related needs of safety, fuel efficiency etc. should also be addressed by the product offering so that he remains satisfied. And now a slew of CRM measures are undertaken by many companies cutting across various industries. There are banks which provide relationship forms instead of application forms to open accounts. They have made banking a pleasurable experience rather than waiting in queue to draw money.

So the focus is on the customer and maintaining a longstanding relationship with him/her. As we discussed in the beginning , this only gives an opportunity to make maximum profits. The tempo with which such efforts are started should be maintained so that profits are sustained. It is not just databases and computers, more than that focussing on the ever changing needs of the customer. Now a bank account can address a customer's stock invest needs as well. Offering a package for financial needs of the customer rather than being a depository of his money, is the first step to retain the customer as he can always move to another concern which he perceives as addressing his financial needs than the previous one.

Getting feedback from the customer on a continuous basis is another step in documenting the ever changing needs of the customer, which the company is trying to address. Now a lot of company's have got into the insurance. It is critical to understand why a person buys insurance. Is it just for security . It is much more than that. People buy insurance for tax benefits, as a savings option etc. so they are looking for a package to address their savings & safety needs. So the insurance products have to be designed accordingly.

People buy toothpaste & toothbrushes to address dental hygiene needs( for fresh breath, to prevent tooth decay and to protect gums as well) The companies trying to retain their customers have to understand the customer well.

*why they buy
*at what places do they buy
*at what frequency do they buy
*how they buy
*what prices are they willing to pay

Maintaining databases on all of these and much more as what do the customers do , when they are not interacting with your company. All the above discussions lead to a more basic question. Will CRM help the company maximise it's profits. The answer is yes only as long as CRM is used to increase profits and not as a tool for sophistication which does not increase the bottom-line. The databases and software gives the managers a better way OF UNDERSTANDING THE CUSTOMER. This understanding should be used to increase profits. Otherwise CRM is not worthwhile implementing. The costs associated With implementing CRM should have been spent on street-smart selling.

There is another point of view also. In a particular industry if the latest trend is to use CRM as a tool then the other companies are also under pressure to follow suit. Otherwise they may be seen as lagging behind in using a powerful tool. For the sake of using it needn't be used.

CRM enables an organisation to focus on customer needs & retain them. But CRM by itself will not get profits. It only provides an opportunity to be successful

Dr. K. Elangchezhian, PHD HOD MBA at VIT Deemed University Vellore.
&
D. MALMARUGAN, B.E ,MBA,
UGC NET LECTURERSHIP IN MANAGEMENT
RESEARCH SCHOLAR AT VELLORE INSTITUTE OF TECH DEEMED UNIVERSITY, VELLORE