Biz Wisdom

By definition, CRM or customer relationship management is the method of learning as many as possible about customers and doing everything the business can to satisfy them or even delight them with goods and services over time. The idea is to get very close to the present customer and to spend more time with them rather than to constantly seek new customers. Some companies have found ways to discourage some unprofitable customers and put more focus on profitable ones by giving them better, more personal service. It is far more expensive to get a new customer with an existing one.

The key to successful CRM is building strong customer loyalty. Customer loyalty is not measured by the quantities they bought in the store. It is mostly associated to the number of times they return or the frequency of the recommendations they do for the company. Here are some of the best practices that help build customer loyalty that every business wants to attain.

• Know your customers – By simply knowing your customer’s name, face, likes dislikes and a bit about there lives makes a huge difference to that customer, which will then have a big impact for the business. Once you know the customer’s name, use it every chance you get. Creating a dialog, and ultimately a relationship, with the customer can reinforce loyalty.
• Hiring the right people – Unenthusiastic employees will eventually hurt your business. They are the ones responsible to deal with the customers the first time they enter the premises. Be sure to get the best. And be sure to convey the message to everyone in your organization and teach them how to contribute.
• Reward loyalty. Many companies already enjoyed the benefits of rewards. There are a number of ways to reward customer ranging from discounted items from pointing system, to free gifts with purchase, raffle promos like plasma tvs and mobile phones and so much more. Just keep in mind that you will need to spend few dollars, but it will get back to you hundreds of more in revenue and may bring referrals.
• Communicate – Whether it is an email newsletter, monthly flyer, a reminder card for a tune up, or a holiday greeting card, reach out to your steady customers. Loyal customer appreciates knowing that you care about their need and interest.