CRM is also known as Customer Relationship Management. Ever since the retail market globally have converted from being only solely being available offline to now combining both offline and online, the market no longer only have consumers but now, customers too. As customers have become the most valuable asset and the main source of income for businesses, customer relations have hence became very important. Especially in the competitive and fast-changing online market, to keep the loyal customers, customer relationship management is definitely not as easy, unlike product management.
Many businesses often just focus on attracting new customers and neglect the existing customers they already have. Therefore, when attracting new customers, they lose the existing loyal customers due to various reasons, which is also known as Revolving-Door Effect.
In the market, the 80-20 rule, represents 80% of the sales come from 20% of the customers, and this 20% figure is usually made up of the loyal customers of businesses. This effectively shows how important customer relationship management is to a business.
Customer Relationship Management is a kind of Relationship Marketing. Sales is just the beginning of the entire journey, businesses should try to understand customers and establish long-term relationships to achieve a lasting sales target.
Advantage of Customer Relationship Management?
1. Increase Customer Loyalty
When they feel that their views and opinions are being valued, they would naturally become more loyal to the brand, and thereafter increase their spending.
2. Increase Brand Image
Brand image is not just build on the brand’s products itself, but on the entire sales process, and after sales service process as well. If customers and the brand can have a close relationship, it can then definitely increase the brand image.
3. Taking In Customers’ Data and Opinion
With more communication, businesses can better understand their target customers, and even obtain related data and opinion. This can be used to develop products that suits the target market and target audience.
Does your online store also have a perfect membership system to aid in Customer Relationship Management?