CRM and SRM: Importance of CRM, Types of CRM Software

CRM and SRM: Importance of CRM and SRM, Types of CRM Software, companies. Definition of CRM and SRM, Five companies who are executing CRM management in business, The Importance and Objectives of CRM: Customer gratification, Improve Effectiveness, Marketing Campaign, Attract Potential Customers, Increase Sales Growth. Types of CRM Software

CRM and SRM:
Definition of CRM:

CRM is the abbreviation form of customer relationship management. CRM refers to the practices, strategies, and technologies applied by the industry for easily managing and communicating with their existing and potential consumers. Customer relationship management focuses on improving customer services, building rapports, and increasing sales growth. CRM collects and analyzes customer data in many ways. The data of the customers can be collected through many channels such as social media platforms, the website of the company, live chat, direct marketing, telephone, and so on. Many renowned companies all over the world are using CRM software to maintain their customers as well as regulating business properly.

CRM and SRM customer relationship management

Figure 1: CRM (customer relationship management)

The example of the five companies who are executing CRM management in business:

  1. Apple CRM
  2. Coca-Cola CRM
  3. Amazon CRM
  4. Activision CRM
  5. Tesco CRM
The Importance and Objectives of CRM:

Although the main objective of customer relationship management  (CRM) is maintaining an effective relationship with customers to improve the company’s sales growth, I have outlined five goals that every industry wants to achieve by CRM tool.

1. Customer gratification

No business can exist without customers; therefore, customer satisfaction is an important factor to increase sales growth. The company always try to satisfy their customers as if they return to buy more products or services. Paying attention to customer satisfaction is part of corporate branding, so every industry uses the CRM strategy for both company and customer mutual benefit. For example, a contact management tool helps the company to implement the CRM strategy properly. Contact management software enables the company to track the conversation between customers and company employees. Therefore, customers feel that they are a very important person in the industry as the company keeps a record of the conversations. Finally, customers will be amused by the communication service offered by the company, and they will be willing to buy more products and services.

2. Improve Effectiveness

The CRM tool assists the company to regulate hassle-free communication with effectiveness. It gives a great opportunity for the industry to respond quickly when customers query to know something. It yields an effective communication between the company and clients and produces customer satisfaction. For the purpose of the marketing campaign, CRM can keep a record to lead the industry taking further decisions in the future.

3. Marketing Campaign

CRM software plays an important role in the marketing campaign purpose. It makes easy the way of conducting sales campaigns to target audiences. This software can design a way of targeting potential customers by using a special tool.   The target audience segmentation process can be driven by the CRM software accurately that yields an effective campaign.

4. Attract Potential Customers

The CRM software allows the company to track the detailed information of the existing customers. This software is also capable to identify loyal clients of the company so that industries can easily reward loyal customers. So, it will not only keep satisfied the current customers but persuade new customers to buy products or services. CRM software can identify the gap in the industry that needs to be fulfilled for customer satisfaction. It can explore the reason why the customer is not interested to buy the products or services so that company can fill the gap to persuade customers to buy them.

5. Increase the Sales Growth

Based on the discussion, it is clear that CRM software helps the company to sell more products and services to the customers by satisfying them. The company will be benefited automatically when increasing the sales growth.

Types of CRM Software:

CRM software has become one of the most popular tools in the global business market to collect more clients than competitors. The company increases the use of CRM software currently to cope with the digital era. He also said that the industry uses many types of CRM tools based on business policy.

Five types of CRM software are as follows:

1. Operational CRM: This type of software helps the customer sales and marketing department of the industry to give better service to existing and potential customers. This tool also can be used in marketing automation, service automation, and sales automation.

Example of operational CRM: Mailchimp or Outreach.

2. Analytical CRM: Analytical CRM assist the company to gather data about customers including point of contact, interests, channels, and customer preference. This software tries to understand customers when operational CRM attributes them to sales funnel. Thus, the industry can make the best business decision after collecting customers’ data through CRM tools.

Examples of analytical CRM: Zoho Analytics or Wave: Salesforce Analytics Cloud

3. Collaborative CRM: This software supports different types of the department in an industry to share customers information. Collective CRM focuses more on providing customer services while operational CRM works for marketing and selling products.

Examples of collaborative CRM: Pipedrive or Copper

4. Campaign management CRM: This tool works for both analytical or operational purposes in the industry. Campaign management CRM collects customer’s information and apply into marketing and sales campaigns. The prime objective of this tool is to assist to run a campaign properly via email integration software.

Examples of campaign management CRM: Active Campaign (email marketing campaigns)

5. Strategic CRM: It focuses on customers to develop the relationship between industry and client. This tool is very useful to build rapport rather than short term relationships for example instant sale or short campaign.

CRM and SRM:
Definition of SRM:

Supplier relationship management (SRM) is an effective way of managing and maintaining a better relationship with suppliers in organizations. SRM helps to reduce the risk of miscommunication and misunderstanding between industry and supplier. In order to provide good service to suppliers, SRM works for increasing the value of the intercommunication. In order to achieve a competitive advantage, most of the reputed companies are using the SRM tool to create and maintain strong and loyal relationships with suppliers.

The example of the five companies that using SRM in business:
  1. Amazon
  2. France’s Renault
  3. Japan’s Nissan
  4. PepsiCo
  5. Alcoa
The Importance of Customer

Customer engagement – customers’ investment in or commitment to a brand and product offerings

Characteristics:

  • Customer retention and loyalty.
  • Customers’ willingness to make an effort to do business with the organization.
  • Customers’ willingness to actively advocate for and recommend the brand and product offerings.
The Importance of Suppliers:
  • Quality of the supply chain affects the quality that customers receive
  • “Superior quality, consistent service, and competitive pricing are just the price of entry to get into the game.”
  • Suppliers must continually improve and align their operations with customer needs.
Principles for Customer-Supplier Relationships
  • Recognition of the strategic importance of customers and suppliers
  • Development of win-win relationships between customers and suppliers
  • Establishing relationships based on trust
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Definition of quality: The History and evolution of quality management strategies

 The definition of quality: The History and evolution of quality management strategies. Quality strategy to profitability in the organization.

The definition of the quality:

There are many researchers and practitioners who have defined the quality in many ways, but the essence of the definition is almost similar. Edward described that quality is the ability to exceed the customer’s satisfaction by proving service and product. In addition, Crosby defined quality is conformance to the requirements of customers. Moreover, Juran defined quality as being ‘fitness for use’. So, quality is the standard or degree of the products or services that can differentiate them from others by the measurement.

Quality strategy to profitability in the organization:

Since the 1980s, many quality strategies or quality management systems have been launched to maintain the quality of the products and services in the organization such as total quality management system (TQM), Six-sigma, reengineering, lean system, and so on (Yang, 2012). Yang (2012) argued that most of the quality improvement strategies have been executed by the company all over the world to yield good results by solving problems or faults.

The History and evolution of quality management strategies:
  • Inspection quality control (IQC), since 1910
  • Statistical process control (SPC), since 1930
  • Total quality control (TQC), since 1950
  • Company-wide quality control (CWQC), since 1970
  • Total Quality Management (TQM), since 1985
  • Six-Sigma (6σ), since 1986
  • Business Excellence Model, since 2000
  • The development and implementation system of the Six-Sigma program

Based on my study on how strategies can influence the business to ensure continual improvement in the organization, I am going to discuss two popular strategies that contribute to the organization immensely to yield customer satisfaction and organizational improvement. The two strategies are as follows:

  1. Total Quality Management (TQM)
  2. Six-Sigma (6σ)-DMAIC

References:

Yang, C. C. (2012). The integration of TQM and Six-Sigma. Total Quality Management and Six Sigma, 219.

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Five Years Business Plan For The Company: How To Write an Effective Business Plan.

Five Years Business Plan For The Company: How To Write an Effective Five Years Business Plan For Private Company. A Sample of The Five Years Business Plan for the Magic Touch Company with Infographic templates.

Table of Contents:

  1. What is five years business plan
  2. A Sample of The Five Years Business Plan for the Magic Touch Company
  3. Infographic Powerpoint Templates 100+ Free Download Link

Five Years Business Plan: 

A five years business plan represents a written statement of goal that the company plans to reach them within 5 years. It is a part of the mission and vision of the company. Five years plan is an inevitable portion of an effective company profile . It will assist to achieve the company’s vision in a dynamic way. Five years of a business plan not only make employees organized to perform their duties properly but persuade clients to keep faith in the company.

 

A Sample of The Five Years Business Plan for the Magic Touch Company

The magic touch company hereby has planed to achieve five goals following the next five years such as advertising in 2019, setting up another office in 2020, making more collaboration in 2021, associating with social work in 2022, and organizing international events in 2023.

Advertising in 2019

The magic touch has declared 2019 as the year of online marketing. Our company has taken all kinds of initiatives to achieve our common goal. Before, we had emphasized on both offline and online marketing. As our company declared 2019 as the year of online marketing, therefore, we are focusing on online marketing now. Our company, the magic touch has made an ideal plan and already implemented it. Now we are waiting to see the result of the campaign. We had chosen social media for online marketing to attract audiences. Social media especially Facebook has become one of the most famous media among youth. Hence, we used Facebook to target audiences as well as for our publicity. Finally, we have achieved our gratification through cumulative endeavors.

Setting up another office in 2020

According to the five years plan of the magic touch company, we are going to build a new office by 2020. This year is very important for decoration in our office because we are going to make some collaborations with the new organizations by 2021. Hence, we have to set up a new office near University Putra Malaysia. We are expecting that an agreement is going to be signed with University Putra Malaysia by 2021. Already our company fixed the location where our new office will be set up and it is near to Mines Resorts. The exact location of our new office is at South City Plaza. The magic touch company determines to complete decoration prior to 2021.

Making more collaboration in 2021

As it has mentioned that we are going to make a bilateral agreement between the magic touch and University Putra Malaysia by 2021. So, we will make collaboration with more organizations. It is estimated that our company will make more than 20 collaborations with different companies. On behalf of the magic touch a popular event management company in Malaysia, we believe in maintaining healthy relationships with all of our clients.

Associating with social work in 2022

Every year our company higher level authority sits together for further discussion about company mission and vision. Our company is very liberal to maintain the rules and laws of the county. We never intend to breach any rules and regulations. For helping the unprivileged people, our company is coming up with helping hands to conscious mass people about health. We are expecting to organize a health camp to arouse hatred to spread plastic bottles everywhere. We believe doing little things can make a big difference. It is estimated that more than 8 million tons of plastic are dumped into our oceans every year. This campaign can reduce a million of plastics dumped in the ocean and save the world.

Organizing international events in 2023

According to our five years business plan, we set our international goal to organize worldwide events beyond Malaysia. In 2023, the magic touch is planning to organize an international event in Singapore, Thailand, Indonesia, Bangladesh, and so on. The magic touch possesses all kinds of resources to manage an international event. Based on our employee’s confidence and resources, the magic touch firmly believes that it will achieve the common goal.

A Sample of The Five Years Business Plan for the Magic Touch Company

Five Years Business Plan For The Company: How To Write an Effective Five Years Business Plan For Private Company

Infographic Powerpoint Templates 100+ Free Download Link:

Download- 134 infographic powerpoint template free download

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