CRM 1080

 The Secret Life of Your Customer 

Economic and management theory teaches us to examine options with relative scientific objectivity to determine the most efficient and profitable processes to increase revenue. Simply put, we look for the quickest and most effective way to make a profit. 

The Art of Profit - CRM1080

What does economic and management theory teach us about CRM?

In 1959 Frederick Herzberg, a psychologist, found that job satisfaction and job dissatisfaction acted independently of each other. The theory states that there are certain factors in the workplace that causes job satisfaction, while a separate set of factors cause dissatisfaction. The factors that cause job satisfaction are called motivating factors while the factors that cause dissatisfaction are called hygienic factors. Basically put, motivational factors tend to increase job satisfaction. Hygienic factors are necessary to prevent dissatisfaction, but only serve to de-motivate job satisfaction if these factors are not present. 

If we relate this theory to CRM we can safely state that hygienic factors are those things that the customer expects whenever they purchase your goods or services; the phone is answered in a timely fashion, the bathrooms are clean, orders are fulfilled correctly, and the many things customers simply expect from your company every time they interact with you. Motivational factors can further be defined (in relation to CRM) as those factors that increase your sales; lowering your price, customer loyalty rewards, holiday specials, and so fourth. 

In economic theory, the law of demand states that, in general, price and quantity demanded in a given market are inversely related. In other words, the higher the price of a product, the less of it people would be able and willing to buy of it (other things unchanged). As the price of a commodity rises, overall purchasing power decreases (the income effect) and consumers move toward relatively less expensive goods (the substitution effect). Other factors can also affect demand; for example an increase in income will shift the demand curve outward relative to the origin (increased demand leads to increased prices and vice versa). 

Determine the Best Methods to Make More Money- CRM1080

So we can say that customers have a certain level of expectations (hygienic factors) and are enticed to purchase our goods and services through sales, marketing, and other factors (motivational and economic factors). 

In other words, the customer is very complex. It is rarely only about price (unless you have a homogeneous product/service with an abundance of substitutes and a perfectly inelastic supply curve). Customers expect a certain level of service to accompany their purchasing experience. The key item here is what kind of experience, how much service, and what and how often they purchase. 

So how can CRM provide us with the insight into our customer to determine the best methods to make more money? 

It’s all about history. The ability to track your customer and review what they have done in the past can give you insight into their new buying behaviors. 

 Why is this important? The ability to review and analyze past behaviors and purchases allow you the ability to do two very important things: 

1. Ensure you have resources (product and labor) at the right place and the right time in anticipation of demand for your goods and services.
2. Analyzing and trending information to predict future buying patterns.

CRM allows you to track a multitude of information about your customer, including personal information that allows you to build upon your existing relationship. It also ensures that your customer receives a level of service commiserate with their purchasing power by everyone who accesses your CRM. Most importantly, CRM is an essential tool, more so in a sluggish economy, that enables you to do what you do best – offer your goods and services at a price the market will bear. 

 Dr. Thomas M. Fryer

Economy Sucks?!??!?!? -- CRM1080

The news is horrible, the weather is frightful, and you want business to be delightful. 

What do you do? 

During an economic downturn most business go through the usual motions of cost cutting and layoffs, and while that may help solve the immediate problem of too much expenditures. Additionally, slowing or cancelling projects, expansion, or campaigns will also solve the immediate problem of too many expenditures, but what do you do once you have done all of this and your sales revenue is still shrinking? 

The good news, despite all of the doom and gloom, is that you can do something that will help you keep the customers you have and attract new customers; even in today’s economy.   

The key is communication. Customers love it when you pay attention to them. How many times have we called a company only to end up in some automated version of semi-robotic purgatory without that ability to talk to a real human being? Did you think that experience was a satisfying solution to your dilemma? Neither do your    customers. Ok, so if your customers prefer to talk to you (a real human being) and you don’t have the resources or the time to talk to your customers, what do you do?   

Customers want companies to relate with them through meaningful and relevant interactions. To do so, companies need to adapt the organization to support current and future customer needs and then apply the right customer-centric people, processes and technologies that support those efforts. What is even more challenging today is that customers are operating at a lower level of income, debt tolerance and trust.   

Fortunately, there is a solution that gives you the best of both – personalization and automation at a fraction of the time, allowing you to focus on the most important aspect of your business, increasing sales by leveraging your current customers while in quest of new customers!   

The answer is a Customer Relationship Management (CRM) tool.  CRM provides the foundation for sustainable growth and enables your company to survive and thrive in these uncertain times. But perhaps most importantly, it’s the recognition that CRM is not about what your company wants; it’s about what your customer wants.   

Dr. Thomas M. Fryer

A Business Solution for every Sales Team -- CRM 1080

The success of your business is largely dependent on your Sales Team‚ the lifeblood of any organization. In an increasingly competitive environment, sales teams need to skillfully manage a range of competencies and toolsets.

To successfully execute the sales process, a sales team has to secure a methodology that makes sense to the organization for the products and services they provide. It also must be flexible for dynamic changes in business environments. A CRM Solution that provides a robust Sales Module can not only help streamline Sales Processes but also provide insights into inefficiencies that can cripple an organization’s growth.

Presentations, literature fulfillment, revenue forecasting, sales follow-up, lead generation, cross-selling / up-selling and scheduling appointments and activities are all part of a day’s work. To achieve peak performance, Sales Teams need easy-to-master tools which provide consistent, accurate and effective results that translate into increased revenues and profitability.

Here is a comprehensive list of the top ten reasons why every sales team needs a business solution:

1.         Provide a consistent and coordinated sales process across the entire team.

2.         Identify and track the real decision makers, focusing energy on those authorized to make the decision.

3.         Target resources toward highly qualified opportunities.

4.         The team gets a 360-degree view of each customer.

5.         Create and track proposals that provide cost justification and customer-oriented value propositions.

6.         Know your competition before proposing your solutions and structure your presentation to emphasize your strengths.

7.         Empower sales teams with powerful research and reporting tools.

8.         Increase efficiency by integrating with effective third-party applications.

9.         Learn from your mistakes.

10.       Enable “Bottom to Top” reporting with ease.

What is Web Self-Service? CRM1080

These days, since businesses are expected to provide personal service and form relationships with thousands of customers, self-service tools are a blessing.

No matter how great your customer care is, if you’re not offering support on the Web, your customers are left wondering why. Many experts agree that having self-service is one of the cornerstones of establishing an e-business presence.

The Self-Service model is founded on the principal of enabling customers, partners and employees to obtain information or conduct transactions directly over the Internet, avoiding time-consuming and costly traditional processes involving multiple verbal or written interactions.

Self-service provides control, performance, convenience and efficiency. This is because customers can perform tasks themselves when they want to through a secure, customized self-service web site. This 24×7 coverage provides convenience to customers while reducing customer service costs to businesses.

Although it has been known for some time that a good self-service program can increase financial returns and maximize customer satisfaction, some businesses have even discovered self-service can have a positive impact on their businesses in areas beyond customer care, in particular marketing, product management and customer information access.

Self-Service clearly has become the norm these days for businesses to remain competitive. Companies that don’t provide consistently high quality service in all channels will find their customers returning to the faithful and expensive telephone or defecting to the competition. Interestingly, although a phone call can be as much as 22 times more expensive than a self-service transaction, an even bigger long-term issue is the lost revenue opportunity from customers that never return at all.

Benefits of Web Self - Service/ CRM 1080