CUSTOMER RELATIONSHIP MANAGEMENT - Creating clients for life

Customer Relationship Management (CRM) was intially used primarly by large retailers tracking buyer behaviour and providing companies with information to up or on-sell.

The concept behind CRM isn't new, it is essentially database marketing and works on the 80/20 principal - 80% of your profit comes from 20% of your clients. It is all about understanding your clients so you can anticipate their wants and needs, thereby developing an ongoing relationship with them after the first transaction. The concept can be very successful when there is a high customer lifetime value thereby establishing a "client for life".

Essentially CRM involves pooling information about your past and prospective clients into a database thereby maintaining a profile on them. This makes it easier to personalise your marketing to the individual so instead of saying "who should I send this to", you are able to ask "what is the right channel for this client?". The way in which you contact your clients can be as simple as picking up the phone, sending an email or posting a newsletter and your CRM system should help you to correctly choose the most effective line of communication. When done, you enter the results into the database so you can monitor and track your success.

When setting up your CRM system, small businesses do not usually require a highly sophisticated, costly system utilised by large corporations. Just as businesses are different, CRM solutions are just as diverse. Importantly, you should choose a package that is easy to use. If the software is too complex and cumbersome, it is likely you will get frustrated and cease to use it altogether. Secondly, the program should be customisable and merge with pre-typed letters, send bulk email messages and print a variety of reports.

Ultimately CRM is about building and maintaining relationships that lead to maximum business advantages for you and an adequate level of satisfaction from your clients. Make sure you are proactive when it comes to maintaining your database, don't lapse otherwise you won't reap the full benefits of the system. Remember it takes time to build an effective database but once done, it will become one of the secrets of your success for decades to come.

For more information on CRM systems and what packages will suit your specific requirements, please contact Rebecca Mitchell direct on (02) 9997 1909 or via email.

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