Thursday, May 24, 2007

Enhancing the long run ROI with excellent CRM strategies and techniques:
Return of Investment (ROI), measures the effectiveness of a company when using capital to earn more profit in the monetary sense of the term than what it had invested initially in the business.

CRM return of investment (ROI) path way for improving the effectiveness of a company is achieved not by economizing on customer support techniques but by promoting loyalty of the existing customers and finding innovative ways to retain customers would prove beneficial for substantially increasing the revenue in the long run. The modern era of business performance evolves around the development of lucrative customer relationships.

Today customer support services play a vital role in the operating structure of a business organization. With the chant that customer rules, very few customer relation managers (CRM) take note of the amount of funds being spent on customer maintenance strategies by calling them, sending out emails, server charges, downloading their personal information etc. CRM ROI strategies and techniques are essential to manage and control investment costs down and drive higher returns.

As far back as 2003 PricewaterhouseCoopers “Trendsetters Barometer” survey stated that, 81% of the fastest growing U.S. companies had initiated CRM programs over the last three years, and many plan to expand their CRM capabilities in 2004. These firms had achieved 46% faster revenue growth than their competitors over the past five years (fueled by an expected 60% revenue growth rate through 2003). Given such findings, it’s no surprise that Boston-based AMR Research estimated the CRM market growth rate to $10.8 billion in 2004, a $1 billion leap from 2003.

How to achieve CRM ROI effectively:

  • STRATEGIC PLANNING : Achieving CRM ROI begins with sound strategic planning.

  • Focus in Reducing Costs, Boost your Revenue : To maximize the ROI and realize the potential of a customer base, one must first understand the value and needs of individual customers, using that insight to treat each customer uniquely, with utmost care.

  • Efficient collection and analysis of customer information : Collecting and analyzing of customer preferences, companies can also determine new techniques for addressing each customer’s unmet needs and enhance the value of each customer relationship, there by increasing the ROI in the long run.

In order for the firm to earn a substantial ROI every year, where the capital gains exceeds the capital losses, one should have a flexible technology which promotes changes to its structure facilitating the inter connectivity of customers and the business development. Efficient management of customers is very crucial for the development of the business. Hence management committee, along with efficient CRM strategies, needs to have a bird’s eye view of the business if the ROI of the firm has to have a tremendous growth rate in the long run.

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