Customer Relationships & Retention

Fundamental of CRM speak about SELECTION & RETENTION as two important aspects of CRM.

SELECTION: is the process of selecting the RIGHT customers suitable and profitable to our business.

RETENTION: Mutuality is most essential in a relationship and RETENTION is the benefit of having long terms relationship with the SELECTED customers.

The most crucial elements of CRM are PEOPLE & HUMAN.

CUSTOMER BONDING & CLV (Customer Lifetime Value) are the tools used by CRM technologies while engaging in the process of Customer Selection & Retention.

Why Selection Customers is Important?
There are 7 Basic Elements of CRM:
1. Relationship
2. Selection
3. Retention
4. Long Term Partnering
5. Interactive Communication
6. Technology
7. People

Selection is the Key Principle of CRM as its very tough to meet and satisfy all the needs os all the customers all the time. Its then important to select and prioritize the customers.

The real business sense is to meet the most important needs of the most important customers & its very important for the survival. For that we require to create a competitive advantage by meeting the requirements of the customers in such a way that:
a. they are not able to meet this need
b. You are better at identifying & satisfying their needs
c. both you and the customers see potential in the long term mutually beneficial relationship & retention.

There are 6 important benefits of Selection:
1. COST Reduction
2. Increase in PROFIT
3. Your COST BENEFIT RATIO looks upwards
4. It helps create GOODWILL for your organization
5. It gets you good WORD OF MOUTH PUBLICITY
6. It helps you generate greater CUSTOMER SATISFACTION & LOYALTY (Retention)