The company I work for provides CRM (Customer Relationship Management) solution. However, being a CRM provider is a little tricky and has different ( by a lot ) requirements and work flow based on industry and business processes in place. There are hundreds if not thousands of CRM solutions available in the market targetted for various industries. I am particularly interested in this field because I think a correctly done CRM can have a significant impact on the success and failure of business itself. I have been wondering what it means to do CRM correctly for few years now.
I usually like to start my project with a motto so that I have a undeterring milestone and goal I am eventually going to hit. For CRM , my motto should be “allow business at maximum capacity.” Yes, it is always easier said than done. How do we allow business to run at maximum capcity ? This is an unsolved problem and will probably never be solved, but we can strive towards it. I have entertained following topics regarding CRM.
Customer : Person (group of) / business ( as an entity )
Product: Goods / Services that Customer is interested in
Sale: When Customer buys Product, it is a Sale and the lifesource of the business.
Business: An entity that provides/produces Product and prospers on Sale.
Goal of any Business is naturally to maximize Sale. So, now lets think of the mechanics involved in getting this achieved. Customer wants a Product that your Business carries, Customer contacts the Business for the purpose of a Sale. Customer wants Product, business wants Sale. This is a fairly straightforward process. If you can feed the above pipeline to the maximum, our goal is achieved. However Customers usually see more than one Business that holds the same Product and some Customer will not even see your Business. This puts the Business at risk because Customer flow is now not certain. So, it becomes critical for the Business to have a constant and healthy flow of Customers, without whom, there is no Sale. Second problem is that the customer who do come into the Business are tainted with information about other Businesses that hold the same Product. So it is important to have these Customer want to make Sale with the Business. CRM does not help solve these problems strategically. However, once your Business sets a strategy, CRM solution could be employed to make your strategy work.
For the above concerns highligted in blue, there are standard business practice or strategy businesses employ already. To bring in customer, Businesses depend on Advertising. Advertising itself is a complicated topic that needs to be dealt with in detail in its own right. But the basic of Advertising is to get the word out and let the Customers know about the Product Business holds and also have Customer interested. The secondary role of Advertising to make Customer interested is a spill from our second Business ciritical concern that was highlighted in blue. There are so many businesses that employes Advertising, now each Business have to spend extra effort to hold Customer’s attention. Another advertising strategy is to make use of the customers who already had interaction with the Business. Businesses try to make a good impression so the Customer can inform others he/she knows about your Business. Okay, so lets assume that with this strategy in place, your Business will get a normal flow of Customers. Your goal now is the make a Sale. Again, a lot of business practices developed over many years are employed here. From the basic Customer courtesy to Customer enticements, every known techniques should be applied. Even with all these, many customers will just flow right through without a Sale. Some of these will never come back and some of these will likely come back. You need to now try and have these customers come back again. Again, businesses employes a variety of techniques here.
I talked a lot about business here that you already knew about. How is this related with CRM ? It is related because CRM needs to identify these core areas and how they interact with each other without losing the main goal of the business. CRM should be supplemental and should be able to help out with any strategy these businesses choose to grow. For a common business, it then has following concerns that a CRM should generally solve
-> Advertisement Management
-> Product Mangement
-> Customer Management
-> Sale Management
while doing these, all these components have components that interact with one another.I realize that this approach I have taken if very abstract. I will write more on specific software design I have been thinking for a CRM later.