Why Customer Relationship Management? What Makes CRM Viable?

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

															Emiel Veenstra, Business Consultant, Netherlands, 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.
			                  		
			                  			Viability of Customer Relationship Management (CRM)

															Stefania Escobar, Student (University), Colombia, Member

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.
			                  		
			                  			Customer Relationship Management is not Just Signing New Customers

															Tracking Works, Manager, United States, Member

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	                            Customer Relationship Management
	                          
	                                Summary
	                                ForumCRM: What Forms a Strong Customer Relationship?
Why Customer Relationship Management? What Makes CRM Viable?
CRM in University Set Up
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?
Healthcare CRM Models?
6 Markets Model (Payne, 1995)
CRM Practices in FMCG Sector
Customer Relationship Management as a Strategic Development Philosophy
Managing Customer Complaints
Relationship with Company or with Employees?
Stages of Customer Service Transformation
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

												              Best Practices
												            
		                          	Relationship Between Employee Retention and Customer Relationship Management
Framework for Monitoring Customer Service
What is the Impact of CRM on Organizational Performance?
Theories of Customer Relationship Management (CRM)
Rethinking Call Centers
Customer Intimacy > WHY?
Social Customer Relationship Management | Social CRM