Another Example of Intermache (Hypermarket chain), yesterday I notice that my loyalty card point will expire soon and again it does not motivate me to make another purchase or continue my card, which lead me to think about the drawback of the Customer relationship management program and its other related factors.
The CRM movement promised great things. It promised the world where the company, employees, and consumers are partners. In the Customer relationship management world, profit flows to those companies that deliver a seamless and integrated positive experience to their consumers. This is the world in which the consumer can purchase anytime, anywhere, and through any access channel. And although companies cannot promise that the product and service will always be right the first time, they can promise to make it right with one phone call, email, Web, or wireless contact. Along with this attractiveness there is some other factor need to consider before or during the CRM program;
· Drawback
· Key Element of CRM
· Success Factor
· Technic
Drawback of CRM
Generally, we don’t talk about opposite side of the wheel, so I thought to talk about it, my objective is not to threaten you instead help you to prepare & give awareness of CSR to act responsibly when needed, although these are context-based factors which are not necessarily applicable for all the company
The Quality of life: It’s highly impacting the quality of life of CREs, a front line employee who is directly responsible for customer email or phone call. We know that serving 365x24x7 is not easy hence we found the solution as outsourcing the process to developing country. I worked as CREs at the beginning of my career, in night shift. I can ensure you that were not easy. UK process, Australian process, US process all that simply mean different odd time to work. Working in the night more fatigued than working in day hence whole day pass on the bed. Globally there were only two activities in life work and sleep, almost impossible indulges in any other activities.
Stressful management: Later on my career I served as team leader-CRM there, I experienced that entire management had tremendous pressure to resolve the ticket within time. There was so much pressure that no one could not stay on leave more than 1 day in fact during that time also they were obelized to answer the email and phone call.
Customer relationship management cost money that we all are aware, not only in technology but also hiring CREs, team leader, and their continuous training. Hence time, patience & money are the key factors because result begs time. Which directly impact either revenue or product/service cost. And at the end if the company failed to manage the ultimate goal of customer satisfaction, retention, loyalty then everything leads to big loss.
Key Element of CRM
The value of Customer Relationship Management is no more arguable and achieving higher market share by selling wide products range and services to the regular customer is more profitable than selling a product to many customers in the limited period of time.
People, Process, and Technology are the major key element of CRM and this has to gain insight into customer behavior and value, in the absence of any of these elements customer relationship management may lead to failure. People: Strategically CRM responsibility must be divided from Top to Bottom, Process should serve the customer need and Technology should be capable enough to drive the process, and develop the correlation, trend and pattern of customer buying for target marketing and operational decision.
Success Factor
The success of customer relationship management program lies in organizational alignment & motivation of management hence objective such as Retention and Loyalty program must be integrated within the process. And necessary data must be captured, monitored, analyze and optimize, which should result into revenue enhancement and reduces cost by Outcome of the CRM such as Cross-selling and Up-selling
A valid customer centric question must be answered throughout the process such as how can the process better serve the customer? Which method should be used to collect data to better serve the customer such as using the loyalty card or apps? Does data mining & techniques are benefiting the customer? Etc.
Technic
Several times I had awarded loyalty point being a customer of various companies such as Bank, SNCF (train) etc.. Unfortunately, I never use my loyalty point due to many reasons such as unawareness of my point or given offer does not worth enough to motivate me to spend time. So the lesson is technology need to facilitate the process and customer, loyalty point must be easily visible and accessible by the customer because customer often doesn’t remember to use them, the enterprise must behave reliable and aesthetically pleasing to the customer for example Starbucks loyalty program by apps.
Proper software must be chosen pertaining to cost and resource, some popular software in the market such as Zoho, Insightly, Fat-free CRM, Microsoft Dynamics, SAP, and Salesforce etc.
Predictive modeling widely used in Customer Relationship Management based on detection theory technic such as clustering modeling to segment, propensity/regression to predict, collaborative filtering to recommend, uplift modeling to retain. Often this part of CRM handles by Technical team although it’s important for management to know the pros and cons of each method.
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