Why Customer Relationship Management? What Makes CRM Viable?

Customer Relationship Management
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Customer Relationship Management > Best Practices

Ankit Kedia, Australia
Why Customer Relationship Management? What Makes CRM Viable?
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. (...) Read more? Sign up for free

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  Emiel Veenstra, Business Consultant, Netherlands
 

What Makes Customer Relationship Management Viable

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.

  Stefania Escobar, Student (University), Colombia
 

Viability of Customer Relationship Management (CRM)

I agree too! And one way of estimating customer profitability is the CLV (Customer Lifetime Value) Concept, a good approach to know what will be the expected purchase behavior.
Customer Loyalty Programs look to improve customer retention rate, customer profitability and reduce marketing costs.

  Tracking Works, Manager, United States
 

Customer Relationship Management is not Just Signing New Customers

One of the main functions of CRM can be to increas (...)

 
More on Customer Relationship Management
Summary
Forum
🔥Relationship Between Employee Retention and Customer Relationship Management
Rethinking Call Centers
Stages of Customer Service Transformation
Best Practices
🥇Framework for Monitoring Customer Service
🥈CRM: What Forms a Strong Customer Relationship?
🥉What is the Impact of CRM on Organizational Performance?
Theories of Customer Relationship Management (CRM)
Why Customer Relationship Management? What Makes CRM Viable?
CRM in University Set Up
Customer Intimacy > WHY?
Social Customer Relationship Management | Social CRM
CRM in a Non-profit Context
Business Relations in Corporate America
The CRM-paradox by Nguyen
CRM in a Monopoly Situation
CRM in Military Organizations?
Customer Relationship Management as a Strategic Development Philosophy
Healthcare CRM Models?
6 Markets Model (Payne, 1995)
CRM Practices in FMCG Sector
Managing Customer Complaints
Relationship with Company or with Employees?
Start CRM with Fixing Fragmented Customer Service Processes
Advanced Customer-Oriented Strategy: Customer Advocacy
An Extreme CRM Case: Front Office
Increasing Student Retention using Higher Education CRM
Six Relationship Management Interaction Processes (Geersbro and Ritter) for International Relations
Customer Relationship Management Metaphor
More CRM Strengths / Benefits
Tool to assess CRM maturity?
Customer Relationship Management History
CRM in Government
Special Interest Group Leader

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