All about Customer Relationship Management CRM
Learn from colleagues and experts
Join now. Completely free.
Log in
X
Why register?
Welcome to the world's #1 website about management.
- Discover 1000s of knowledge centers.
- Learn from colleagues and experts.
- Share best practices with 1,000,000 members.
- Accelerate your management career.
- Completely free.
Log in
|
Why Customer Relationship Management? What Makes CRM Viable?
Ankit Kedia, Member
What makes CRM a viable option is the cost dynamics
- The cost of getting a new customer is 4 times the cost of retaining an existing customer.
- 80% of a firm's business comes from 20% of the customers.
Hence the firm should channelise its efforts in retaining this 20% section of customers through its CRM activities.
|
|
| |
|
What Makes Customer Relationship Management ViableEmiel Veenstra, Member Ankit, I completely agree. Although one important factor should not be forgotten: to check whether the customer, even if he is one of the 20%, is profitable.
So, I think this is an element you should add to CRM: Only keep the customers that are profitable.
Therefor the company must have the possibility to calculate the real costs and thus profits per customer. |
|
| |
|
Customer Relationship Management is not Just Signing New CustomersTracking Works, Member One of the main functions of CRM can be to increase the spend of your current clients. Make them realize why they need additional services you can provide. CRM should never just be focused on signing new clients or bringing in new business. CRM should also apply to your current clients that you feel have room for growth. |
|
| |
Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.
|
|
|
|
|
Special Interest Group Leader
|
|
|
More on Customer Relationship Management CRM
|
|
|
|
|
|
|
|
