What is CRM? How do you contribute to CRM?

"Pag gusto, may paraan; pag ayaw, maraming dahilan " It is about getting better everyday.

Situation:

We have a Records Assistant/CRM.  However, the new recruit is still struggling with records (no approval for docs for almost a week) and many of our staff have seem to lose touch with our our No. belief of  Customer Service.  CRM is part of the bigger Value Proposition we offer to our customers - Customer Service.

1.  What is Internet definition of CRM?  It is a strategy that a company uses to keep relationships with the customer strong.  It is building a community of buyers through rewards.(and other means and tools) It is mostly viewed as:

       l.  loyalty reward system  (SM Advantage card, Mercury suki card)
       2.  computer backed data base system of compiling records on customers, their sociological and psychological make up, buying behavior.

The textbook definition (from Managing Small Business by Moore, Pallich, Petty and Longenenecker,  2012, Phil ed)  is "company wide business strategy to optimize sales, profitability and customer satisfaction by focusing (strengthening relationships) with a defined group of customer groups. "  p. 365

However, CRM has existed long before the computers and rewards .  It known as Juki (suki for us)  It is personalized service  -  knowing a customer by first name (remember Dale Carnegie and NAME - THE SWEETEST SOUND FOR ANY PERSON IN ANY LANGUAGE IS HIS FIRST NAME.  Remembering names from Harry Lorrayne  Superpower Memory)

2.  The benchmark for CRM is personalized service.  Here are some best practices on CRM (from Moore, Pallich et al)

      l.  Doing business on a first name basis;

      2.  Keeping in touch by:   personal visit, phone calls, sending birthday greetings and other special occaions, thank you notes, sending items left by the customers in the premises:   hats, coats, umbrellas, OSCA cards, etc.

      3.  Finding ways to help.  Sending tips (hard copy or soft copy with a kind note attached)  on:   household, nutrition and health, wealth building;  problems with govt agencies or other companies.

     4.  Addressing problems quickly.  Observe the 24 hour rule.   Solve problems within 24 hours. (internal or external customers.)  Guy Kawasaki answered/answers emails of customer  within 10 minutes.  A classmate who heads a big bank answered my email in l5 minutes (because he is a classmate?)  Unfortunately, he has been retired.

     5.  Treat a customer as if he is a friend or relative.

     6.  Have him as a customer for life.  It costs much to acquire a customer (by ads, promo, sales effort) by as much as 25% of sales.  So do not lose him.  Have him in your community. Sell  to him/her again and again and again.  70% of sales come from repeat sales of existing customer.  He could be your apostle/advocate and be your  extension of your sales force.  For Carl Sewell, his Cadillac dealership sells as much as million worth of Cadillac in their lifetime.

3.  Contents of CRM data base:

     l.  Basic information:

        Name       Birthday,         Wedding Anniversary
        Address
        Contact:   email, telephone (CP)

     2.  Transactions:

        l.  Sales calls
       2.  Phone calls made
       3.  Items bought

    3.  Market segmentation/market behavior

       1,  SEC (socio economic classification
       2.  buying behavior preferences

     4.  Responses to marketing/promo campaign.

 5.  BUILDING BLOCKS OF CRM

      1.   Building outstanding relationship with the customer

            l.  Superior delightful customer service <exceeding customer satisfaction>
            2.  It support
            3.  Customer profile database

     2.  Knowledge of customer behavior

           l.  Sociological influences
           2.  Psychological influences
           3.  Decision making