CRM (Customer Relationship Management) is basically a business strategy that not only enables you to strengthen customer service, but increase employee productivity. However, businesses worldwide are fast realizing that they can also take advantage of CRM to increase customer satisfaction in addition to enticing new customers, an element that is important in boosting business revenues. Consequently, of CRM is not just limited to software application, but also encompasses business strategy.
How Customer Relationship Management System Works
Before looking at how to use CRM to increase customer satisfaction and manage overhead costs, it is important to first of all understand how the Customer Relationship Management system functions.
In a nutshell, CRM functions by collecting and breaking down data about customers. The analyzed data can then be used to make crucial business decisions. An ideal example of CRM is the discount card or loyalty card used by market leading supermarkets. Whenever a customer makes purchases at any of the chains of the retail store that issued the card, the discount card is scanned and the items bought automatically captured and entered into a database. This in turn provides the business with accurate information about what certain class of customers prefers.
The data collected can be analyzed by the business further with an aim of improving marketing strategies which is important in increasing sales. Ideally, what a Customer Relationship Management does is to bring the business closer to its customers.
Yet, CRM is also extremely useful in regards to customer service. Automated Customer Relationship Management systems can be utilized by businesses to:
– Thoroughly analyze customer complaints.
– Transform business processes appropriately.
– Act as a virtual assistant.
– Validate verbal transactions and resolve disputes.
There are a myriad of other things that an automated CRM system can enable you to do. But in a nutshell, Customer Relationship Management is important in solving problems, deterring possible bottlenecks and streamlining workflow. As a result, your business will become more efficient besides increasing customer satisfaction.
How to Use CRM to Automate Customer Interaction
With an effective automated system, customers do not need to spend money calling a call center with an aim of making routine enquiries. Notwithstanding what a customer needs, he/she should be able to get it quickly and effortlessly. As a result, you will not only be improving customer service standards, but freeing up valuable resources.
The following are some of the ways through which an automated customer interaction system can enable you to better look out after your customers:
– Reducing call center burden by at least a third. Combining speech recognition with interactive voice response will allow your business to automatically manage up to 30 percent of routine incoming calls.
– Making it easy for your customers to find what they want (e.g. account balance and parcel pickup) quickly through interactive voice response.
– Personalizing customer service according to needs. For example, you can speedup transactions by providing customers with choices which are applicable to them.
How to Use CRM to Increase Employee Productivity
Besides getting you closer to your customers, Customer Relationship Management can also enable you to increase employee productivity. Everyday tasks like data transfer can be easily automated, thus providing your employees with more valuable time to manage high value transactions which are important in increasing sales and profits. Automated business processes like call recording help in quickly resolving disputes in addition to providing you with the data you can use to enhance call handling.
Other added benefits of Customer Relationship Management in regards to increasing employee productivity include:
– Increases the precision of business forecasting as well as scheduling. This in turn eliminates the need to manually convey information between applications.
– Increases employee output by queuing workflow elements, for example, problem tickets and then transferring them to personnel with the necessary skills.
– Transferring incoming calls to personnel that are best equipped with the right expertise and tools.