Taken from crmtrends.com (Please see our blogroll for our reference sources)
The most important basis for strategy development is a comprehensive understanding of what drives customer loyalty and how strong those drivers are. The key to understanding what drives your customers’ loyalty lies in finding answers to the following questions:
- How does our business define customer loyalty?
- Are our customers loyal? To what extent or intensity?
- How do we create, build or earn customer loyalty?
- How can we use customer loyalty strategically and tactically for positioning?
The first step in answering these questions is to measure both customer satisfaction and customer loyalty. In working toward a thorough understanding of your customer, begin by looking at why your customers leave. Profitable CRM projects start by understanding customer needs.
Great service and customer recommendations alone are not sufficient for relationships. If you give poor service you won’t have a relationship. And if you give great service, you might not have a relationship if you don’t take care of that relationship, knowing your customers’ preferences. It is essential to have a solid grasp of which factors in your business relationship with your customers are most important to them. Listen to your customers and then begin developing your CRM strategy because if you don’t satisfy your customers, they won’t come back. And remember:
a) CRM isn’t CRM unless it affects the customer’s experience
b) CRM is a strategy, not a project
c) CRM should improve ROI
d) Technology is a means, not an end
e) You want a 360-degree of your customer
Consider the checklist below. We believe that these strategies will enhance your likelihood of long-term CRM success.
1: Get sponsorship from the top brass. If management doesn’t believe in the new approach, why should the employees? Implementing CRM requires working across organizational boundaries and breaking down long-term siloed behaviors and attitudes. You can’t do that by yourself! Many times the difference between a successful CRM strategy and a huge waste of money is backing from the executive suite.
2: Build a team. Prior to developing your CRM strategy or selecting your CRM software, form a CRM team with representatives from each department to make sure colleagues’ needs and concerns are addressed. Too often companies neglect to include the correct stakeholders, and the initiative fails to meet the needs of those tied to its results. Pick your CRM team wisely – everyone will need to own the customer experience. Remember in forming the team, consider people, process, and technology as all will be affected.
3: Define your business objectives? Your CRM strategy must be designed with your business objectives and customer requirements in mind.
4: Identify who your customer is. Is there agreement on definition of “customer?” – The marketing department of an automobile company might consider a “customer” to be a dealer, but the call center might consider it to be a driver. Have consensus on this and other key definitions. Can you identify your customers across multiple touch points (retail, call center, mail, catalog, web and e-mail)?
Consider life stages. According to the U.S. Census Bureau, there are roughly 75 million baby boomers (born between 1946 and 1964), more than 49 million gen Xers (born between 1965 and 1979), more than 72 million gen Yers (born between 1980 and 1999), and 40 million millennials (born between 2000 and now).
5: Differentiate. Identify your customer segments – your high-value and high potential customers. Know who you want to serve. Understand what that customer wants? Prioritize. What is the customer worth and what is their potential worth?