On the Spot: CRM
Customer service has to be top-of-mind as everyone feels the economic pinch. This month, Brainstorm asked the industry why businesses should consider implementing CRM systems.
01 September 2008
Customer service is something of a misnomer in South Africa. Customer frustration, customer irritation or outright customer disservice, perhaps, but service is rare. Customer relationship management (CRM) has long been touted as the solution to customer service woes. And many companies have implemented such systems with varying degrees of success. Service is still the exception though, which made Brainstorm wonder why companies should bother with CRM in the first place.
Companies are starting to realise that they could have the best product in the world, but if customers don`t get good service, they can - and will - look elsewhere. In the long run, losing existing customers can do more damage to the bottom line than not attracting new ones. It costs more to acquire new customers than it does to retain existing ones. Markets are finite, so companies that rely heavily on new business eventually run out of customers. Unhappy customers can significantly damage a company`s reputation and discourage new business. One way to maintain existing customers is through an effective CRM system. The premise of such a system is to organise technologies and processes around the customer to ensure the best customer service. Companies using this customer-centric strategy can strengthen customer loyalty and, in turn, maximise the profitability of customer relationships. Dave Paulding, regional sales director for UK and Africa at Interactive Intelligence The complexity of 21st century organisations, both from a structural perspective and the number of products they offer, makes the navigation thereof intimidating and counterproductive for customers. The implementation of a well-managed and structured call centre, running a properly implemented CRM solution, goes a long way to alleviating this business risk. Ewan Macaulay, software & technology division head at IQ Business Group
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