In its simplest
form Customer Relationship Management (CRM) recognises that loyal
customers are the foundation of a successful business. Most companies
in today’s business environment often stress the need to maintain a
strong customer focus, but many fail with poor service delivery,
resulting in higher levels of customer defection. Successful CRM
initiatives should align to a true customer-centric strategy that
permeates throughout an organisation.
Key to developing a
successful CRM strategy is the need to first capture, analyse and then
interpret your customer data. Segmenting these customers by their worth
to your business (customer value management) will help you to determine
those who are the most/least profitable. Once these components are in
place, CRM helps companies to understand, anticipate, and ultimately
fulfil the needs of their most important customers.