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4move for earning money through CRM system. Customer satisfaction, business will continue to come to the door, therefore, more and more companies regard customer relationship management (CRM) as an important reform of the company, have spent money to set up a customer relationship management system

From the figures, it can be seen how much the market for CRM applications and services is available: the Gartner Group, a market regulator, estimates that CRM applications and services with a global value of $23 billion in 2000 will exceed $75 billion in 2005. The strategy also predicted that domestic CRM will reach a market size of NT$9.97 billion in 2003.

There is a market for demand. Although the market for providing CRM services is growing year by year, what is the effectiveness of setting up a CRM system? According to the survey of 1,200 business executives conducted by the Data Warehousing Institute, 16% of companies after CRM implementation felt that the results exceeded expectations, 42% felt that they were in line with expectations, and up to 41% felt that they failed. Gartner’s survey also showed that 32% of companies that completed CRM system construction rarely used the system after one year.

For the CRM system that has been spent on big money, 40% of the companies feel that they have failed, and nearly one-third of them have only used one year. What’s the problem?

“CRM is a technology tool used by companies to build profitable relationships. The focus is not on technology, but how to properly manage customer relationships to achieve economic benefits. This is no different from any investment,” said a senior business executive.

He is right. It’s not just bad luck or the system is too bad, but it’s not a must. Eric Almquist, a management consultant, believes that there are four important things to be aware of when using CRM systems to make money with CRM.

The first trick of earning money through CRM :

No business ideas, technology does not come in handy

In the case of Charles Schwab, the company is able to maintain its long-term leadership position because it is the first to anticipate the upcoming customer demand.

In the 1980s, when customers began to seek low-cost and reliable services, Schwab was already a discounted and value-added discount trader. In the late 1980s, when customers needed individual investment advice, Schwab would have been better than ever. Financial planners collaborated; in the late 1990s, the company’s “one-time purchase” service once again led the competition, and such new demands were not yet perceived by the customers themselves.

The reason is simple. The technology products such as CRM are of course the key interface for the exchange between Jiaxin and customers. However, at best, it is only a supporting role, and the corner must be dominated by “business ideas.”

** The second move of earning money through CRM

Let key information tell the future

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“The CRM system can record all the information about the interaction with customers,” which is the advertising word used by many system vendors to attract business. But strictly speaking, “collect only the important information you need” can make good use of limited resources.

Customer information is not to win more, it is not a good harvest. CRM should lock in key information and, after interpretation, prioritize resources on matters that allow customers to have a better experience.

In addition to letting you know the consumption patterns and behaviors of “existing customers” in “Today”, information should also be able to dynamically predict the possible consumption behavior of “existing customers” and “leaders” in the “future”. Otherwise, information More, it’s just static, outdated death information.

**How to earn money through CRM for the third move:

Use the right metrics to make the right system

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According to the Conference Board’s survey, most CEOs regard “customer loyalty” as their top management issue, and they don’t know the “Customer Retention Rate” that is often used to measure customer loyalty. Measuring customer value to the business is not a good indicator.

The simplest example is that a credit card operator with 100% customer retention may not be lower than the retention, but remove the high-debt users’ peers. The key is that each customer’s buying habits are not the same as the profits they contribute.

The US credit card industry capital One has designed a sophisticated business model to launch tailor-made premium services for customers with high profit contribution and become the industry leader.

**Last move for earning money through CRM :

Become a dynamic learning organization

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One of the main reasons for the failure of IT investments such as CRM is that the senior management of the organization failed to adjust the strategy in response to the system import, resulting in employees still doing things in the old way.

With the basic belief of “working together to improve customer value,” it is especially difficult for companies with more than one business unit. A senior executive of a publishing group pointed out that “we have more or less customers in several departments, and each department wants to be alone. It is necessary to unify the muzzle to kill their lives.”

Senior and departmental leaders should first decide on how to measure customer value, then determine the necessary changes and common goals, and then create an incentive environment that encourages employee input through internal communication. Next, develop the ability and culture of employees to “continually improve”, so that they can automatically collect information that will help improve products and services, improve processes, and update business models.

For example, FedEx has a daily automatic tracking mechanism that allows you to see the latest information on value-related indicators such as “customer return on investment” or “per package income” on the internal network. In addition, cross-functional teams will analyze relevant indicators of service quality to identify issues that should be corrected and new opportunities that can be developed. Employees must also receive “customer care” training each year to keep improving their abilities.

“First small-scale trial and full implementation” is not the style of FedEx; the dynamic learning structure, continuous and rapid introduction of various new activities, while testing and learning, is the company’s use of information collected from the CRM pipeline, in the The secret of the industry is the real secret.

Although CRM is very popular, before you can make good use of this seemingly omnipotent IT tool, you must first cultivate a business mind that can always provide value to customers and how to obtain value from customers. Is the key to the maximum effectiveness of the CRM system