Customer Relationship Management Basics

In order to maintain a successful business, the business must understand and maintain a positive relationship with its customers. Customer Relationship Management (CRM) is the process of bringing the customer and the company closer together. There are many different areas in which Customer Relationship Management can be implemented. The goal of CRM is to help a company maintain current customers, as well as gain new customers.

Targeted Marketing

Targeted marketing is accomplished through collecting information about the customer. This information can be buying habits or simply demographics. The idea behind this is that a business analyzes what a customer buys and then markets specific products to that customer based on his or her buying habits. Businesses track buying habits using discount cards, and special store credit cards. Targeted marketing can also be implemented on the Internet. Amazon.com has product recommendations based on buying habits, and product ratings. Customers can also be sent e-mails that market targeted products. Marketing the right products to the right customers can significantly increase a business' sales with minimal associated costs.

Call Centers and Customer Service

Have you ever called a business to complain or ordered a product and encountered an automated call response (I.E. “please press 1 for questions, 2 for comments” etc.)? That’s CRM. Call centers that take calls and monitor customer/business interactions are often running on hosted CRM programs. CRM managers want to make call centers as efficient and customer-friendly as possible. A customer who can easily navigate through an automated system is more likely to do business with the same company in the future. In the case of a complaint, a customer whose problems are responded to immediately is more likely to forgive and forget a company’s transgressions. Customer service is the backbone of all CRM processes and strategies.

CRM Vendors

Not surprisingly, in order to successfully collect data, manage call centers, analyze data, and make changes, businesses need CRM software. There are many CRM vendors in the world. The most widely-recognized vendors are Siebel, Salesforce.com, and Microsoft. Each of these vendors has contributed to CRM in its own way.

CRM Applications

There are many different types of CRM applications. Some CRM applications are Web-based so they can be accessed via a browser. Other CRM applications have programs built in for integrating data entries and data management across several applications. CRM vendors also have specific strategies that are unique to every client. The goal of a CRM vendor is to not only upgrade a company with the latest CRM technology, but also to design the companies infrastructure in such a way that the customer/company relationship can flourish.

Conclusion

Knowing the customer is the key to a successful business. Customer Relationship Management is the process through which a business analyzes their customers and makes changes accordingly. CRM vendors provide applications and advice on the best CRM methods. Most observers believe that CRM practices will continue to flourish as new CRM strategies and technologies are developed. For any business, a successful CRM approach is a must-have.

Automating your customer support...

My regular readers will know that one of the things I highly recommend doing with any online business is automating as many of your day to day tasks as possible.

From a personal point of view, one of the tasks that takes up a lot of my time is answering emails. It isn't just answering email that eats up the hours - sorting through and deleting spam and junk mail absorbs a lot of time too. In the good old days, I used to get a couple of spam emails a day. Now it is closer to 1000 a day!

In fact, when you look at it, email isn't always the best form of online communication. Not only is there the junk mail issue to contend with but also the fact that email is not 100% reliable. Emails do 'go missing' far more regularly than you might expect. Often this is simply because the recipients email software has decided that a particular email is junk and has transferred it directly to the 'Delete' folder. Other times it may be because the recipients ISP has decided that the email is junk and deleted it BEFORE it has even been seen by the recipient! (Yes this really does happen - imagine if your postman sorted through your mail and made the decision of which letters you want and which ones he should throw away?!)

One way to help avoid the spam problem when dealing with customer support enquiries is to make use of a contact form on your website instead of posting an email address. This will certainly help to cut down on spam but it still means that you have the problem of emails not getting to their destination (and when you have a frustrated customer waiting for assistance this is not ideal).

Therefore, probably the best option on the market presently is a full-blown helpdesk system. Setting up a dedicated helpdesk is a superb way of automating your customer support and speeding up the process of dealing with enquiries and support emails. Not only that but if you use a system that allows customers to create 'tickets', you don't have to rely on email as your customers can login to a special web page and view both their tickets and your replies online.

Another feature of many helpdesk scripts is an 'FAQ' or 'Knowledgebase' section. This is simply a collection of the most frequently asked questions/queries/problems along with answers and solutions. This means that customers can search the knowledgebase and hopefully find the answer to their question without having to contact Support at all.

Some of the more advanced scripts will even scan the customers support ticket prior to submitting it and then list a few possible answers to their questions just in case they didn't read through the knowledgebase before typing the ticket out - very clever stuff.

These scripts are also very powerful in terms of how they can benefit you. Just think how much time you could save if, say, 40% of your customer support emails just stopped coming due to the fact that your customers were now able to find the answers to their questions automatically.

Having an online helpdesk is also of benefit if you travel around a lot or if you are away from the office on vacation etc. Instead of having to take a laptop loaded up with previous emails from customers, you can simply login to your helpdesk admin page and all of your previous correspondence will be online and at your fingertips. It also means that you won't have to spend hours in an Internet cafe deleting a days worth of spam at a time just to get to the important emails since only the important emails will have made it through to the helpdesk in the first place.

As with most things, setting up a customer service helpdesk is one of those tasks that is always better done when you first start your online business. That said, it is fairly easy to integrate such a feature into your existing set up and that is exactly what I have done for all of my websites...

Over the next few months, I will be phasing many of my email addresses out - I simply can't stand the spam any more! With immediate effect, all customer support issues for all of my products and websites will be handled via a central Customer Support Helpdesk.

I am confident that this will improve the overall 'support experience' for both my customers and me :-)

If you are interested in installing a similar helpdesk on your own website/s, there are numerous options when it comes to suitable software. I chose a product called eSupport (link below) and whilst this is a very powerful script, I am hesitant to give it my full recommendation since the installation/set up process was, how can I put this, slightly painful. It doesn't help that there is no manual for the software which means that new users are left to figure out how it works by trial and error or by trawling through hundreds of posts on the company forum. That said, I am advised by the software creator that a manual is in the process of being written and will be available soon. As I say, an excellent and powerful script once installed and configured but definitely not for those lacking patience (and indeed, some computer knowledge). If you opt for this script, my advice would be to get the publishers of the software to install it for you. You can find out more about eSupport at: http://www.kayako.com

Other alternatives (neither of which I have tried myself) include Perldesk ( http://www.perldesk.com ) and Cerberus ( http://www.cerberusweb.com ). One advantage of Cerberus is that there is a free version :-)

5 Key Marketing Questions

When you know the answers to these 5 key marketing questions, you can create effective web pages, sales letters and other sales generating communications. The answers to these 5 questions reveal how you can get your prospect's attention and motivate them to take the action you want.

1. WHO DO I WANT TO REACH?

Describe detailed characteristics of your ideal prospect. Be very specific.

Once you clearly define the characteristics your ideal prospect you can develop a powerful sales message appealing directly to their unique interests and needs. Prospects are more likely to respond when they feel you are talking directly to them about their individual needs.

2. WHAT ACTION DO I WANT TO GENERATE?

Decide in advance what action you are trying to stimulate. Do you want to get inquiries for your product or service? Do you want to produce sales directly from your promotion? Or do you want to build a list of qualified prospects willing to receive frequent offers from you?

You can develop an effective promotion in a short time when you have a clear understanding of the action you are trying to generate.

3. WHAT IS MY COMPETITIVE ADVANTAGE?

Identify why prospects should do business with you instead of with a competitor selling a similar product or service. For example, do you provide faster results, easier procedures, personal attention or a better guarantee? If you cannot think of a reason - create one. Add something to your business you are not already doing.

Your competitive advantage can be responsible for fifty percent or more of your sales. Make sure you have one - and don't lose it. Keep checking on your competition and make any changes necessary to keep your competitive advantage.

4. HOW WILL I PROVE MY CLAIMS?

Don't expect prospects to believe what you say. Make sure you provide proof of any claim you make.

For example, collect and use testimonials from satisfied customers. Provide research data supporting your claims. Get endorsements from experts your prospects are likely to recognize.

5. HOW WILL I CREATE URGENCY?

Most prospects do not respond the first time they see your promotion. Instead, they delay making any response - then often forget about you.

You can convert many of these procrastinators into buyers by giving them a compelling reason to respond immediately. For example, give them a special price if they order now - or include a valuable bonus if they order by a specific deadline.

TIP: Develop a series of 4 or 5 different special offers. Use them one at a time with an expiration deadline. When one offer expires, replace it with the next offer and a new deadline. Continuously recycle through the same series of offers. This enables you to create urgency using special offers without taking time to create new ones.

You need to answer to these 5 key marketing questions before you can create a motivating web page, sales letter or other sales generating communication. The answers to these 5 questions will reveal how you can get your prospect's attention and stimulate them to take the action you want.