Client Retention and Brand Image Development by CRM Technology

This report depicts the importance of developing proper customer relationship management system in the business organizations to build secured relationship between the consumers and the organizations. With the technical excellence of CRM the business organizations will be able to obtain client retention. The role of CRM in business organizations, its goal, benefits are also elaborated below. In addition to this, the factors of customer retention and the KPI of customer retention programs are also illustrated in this report.

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Client Retention and Brand Image Development by CRM Technology
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CLIENT RETENTION BY CRM TECHNOLOGY
Table of Contents
Introduction........................................................................................................................2
1. Background....................................................................................................................2
2. Consumers are the focal point.......................................................................................3
2.1 Marketing.................................................................................................................3
3. Customer relationship management.............................................................................3
3.1 Goal of CRM............................................................................................................3
3.2 Benefits of CRM.......................................................................................................4
4. Customer retention........................................................................................................4
4.1 Advantages of customer retention strategy.............................................................4
4.2 Factors of customer retention..................................................................................5
4.3 Customer retention as a key to business retention.................................................5
4.4 Key performance indicators of customer retention programs..................................6
Conclusion.........................................................................................................................7
References.........................................................................................................................8
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CLIENT RETENTION BY CRM TECHNOLOGY
Introduction
This report depicts the importance of developing proper customer relationship
management system in the business organizations to build secured relationship
between the consumers and the organizations. With the technical excellence of CRM
the business organizations will be able to obtain client retention (Dalir et al. 2017). From
the business perspectives it can be said that, the performance of the company will be
improved through CRM technology.
Marketing is not just about the organizational development but also manages the
matter of sales and supply however the continuous development and the effect of after
sales services to the consumers with a long term relationship could also be added with
the help of Customer Relationship Management system. The role of CRM in business
organizations, its goal, benefits are also elaborated below. In addition to this, the factors
of customer retention and the KPI of customer retention programs are also illustrated in
this report.
1. Background
In order to develop relationship between the consumer and the service providers
since last two to three decades the organizations have started using the concept of
Customer Relationship Management (CRM) technology. Both short term and long term
strategies are needed to be incorporated to increase their brand value for gaining more
number of consumers and also to retain their existing consumers (Garrido-Moreno,
Lockett and García-Morales 2014). According to the current market trends, the primary
concerns of the companies are no longer to achieve market leadership and conquering
market as well inspite of that the organizations should ensure that the contribution of the
activities are helping to gain mutually profitable relation with proper consumers (Ascarza
et al. 2016). The relationship between the buyers and sellers helps to reduce the rate of
negative consequences from the functional and operational activities of the business
organizations.
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CLIENT RETENTION BY CRM TECHNOLOGY
2. Consumers are the focal point
2.1 Marketing
Marketing is referred to as a continuous as well as persistence process,
implementation and follow up. Marketing plays the most active role for business
planning in different ways. In case of market formulae for success, the customer value
is the key integrant (Bukhari and Kazi 2016). The product quality and service served by
any business organization should be consumer focused so that long term success could
be gain eventually. In order to develop an acceptable definition to de-limit the business
domain, the features of CRM are needed to be analyzed by the executives of the
business organization. It also helps to maintain both the offline and online marketing.
Apart from this marketing also helps to build relationship among customers, corporate
management, suppliers and competitors. It also helps to gain competitive advantages
from the marketplace (Jain and Patel 2016). Moreover, it can be said that CRM helps to
define the factors those are useful to understand the different ways to satisfy both the
new as well as existing consumers.
3. Customer relationship management
3.1 Goal of CRM
After analyzing the operational and functional activities of different business
organizations it has been found that, their goal is to obtain effective as well as
measurable revenue and competitive advantages simultaneously. The leading
objectives rather goal of CRM is to satisfy the consumers through their product and
services (Trainor et al. 2014). It also helps to make their service much efficient to attract
new consumers and also to retain the existing consumers. The extreme sales approach
will also resolve the business gaps. From the value chain analysis model it is found that
with CRM technology both the primary stages and supporting condition will move
towards business profit and customer retention.
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CLIENT RETENTION BY CRM TECHNOLOGY
3.2 Benefits of CRM
The benefits for which most of the business organizations use CRM as a
technology include the following:
 CRM helps the business organizations to grab new consumers and also in
customer retention
 Through integrated campaign individual segmentation could be analyzed
and also high service level delivery become possible with the help of CRM
technology (King, Dhameeth and Kim 2017)
 The business efficiency could be grown efficiently, to increase greater
business agility
 It can establish secured relationship between the consumers and the
service providers
 It could safeguard the functionality and operation of any business
organization (Dalir et al. 2017)
 CRM helps to prevent sensitive information from the external assault
4. Customer retention
4.1 Advantages of customer retention strategy
With the help of Customer retention strategies both the stakeholders and the
company owners would be able to gain the following list of benefits:
 It is cheap than acquisition
 It helps to bring more number of loyal consumers so that the business can
obtain more profit
 The brand image would be stand out from the crown of business
 The engaged consumers will be able to provide more feedback to the
consumers (Bukhari and Kazi 2016)
 Through CRM the consumers will be able to increase the brand loyalty of
the organization
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CLIENT RETENTION BY CRM TECHNOLOGY
4.2 Factors of customer retention
The list of critical success factors those are helpful for the company to drive the
consumer retention strategies. If the business organizations are willing to upgrade the
consumer retention then certain strategic marketing factors are required to be
considered by the company executives and the factors are as follows:
 Both the existing and newly grabbed consumers are needed to be analyzed in
terms of the satisfaction level and product and service level expectation (Trainor
et al. 2014)
 The consumer’s expectation should be managed well
 The consumer’s service is improved in terms of lifetime value
4.3 Customer retention as a key to business retention
Customer retention is referred to as a key to business retention as it helps to
boost the profitability of the business. Different reasons are there for which customer
retention is considered for measurable business success. Customer is a key for the
business success due to the following reasons:
 It helps to save money and time as well during the business operation and
functionalities
 Profits could be achieved in a repetitive manner
 The process of advertising become easier from the business perspectives
 Te retained consumers are able to serve valuable feedback to the
consumers
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CLIENT RETENTION BY CRM TECHNOLOGY
Figure 1: Customer retention factors
(Source: Dalir et al. 2017, pp-20)
4.4 Key performance indicators of customer retention programs
Key performance indicators are used in the business organizations to serve both
internal as well as external client’s actionable metrics with easily accessible, customized
and effective efficiency to the business operations (Bukhari and Kazi 2016). It helps to
measure business goals, vital information, and continuous business success factors.
The list of KPI those are necessary for customer retention programs are as follows:
 Financial metrics (Profit, cost, cost of goods those have been sold)
 Customer metrics (lifetime value, satisfaction and retention)
 Process metrics
 People metrics
 Customer metrics
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CLIENT RETENTION BY CRM TECHNOLOGY
Conclusion
From the overall discussion it can be concluded that with the help f the CRM
technology any business organization would be able to build secured relationship
between the consumers and the service providers. In the current business world the
concept of CRM and its impact in consumer’s loyalty is constantly obtaining huge
attention. One of such strategies is focusing on consumer loyalty which is viewed in
terms of automakers. In order to gain consumer retention brand loyalty is the most
important thing that should be focused on. In order to identify and satisfy the consumers
all the significant critical success factors are needed to be analyzed by the project
executives so that it could retain their existing consumers and other consumers as well.
The profits for which consumers are using CRM technology in the business organization
are elaborated. In addition to this, the key performance indicators of consumer’s
retention programs are also elaborated in this report.
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CLIENT RETENTION BY CRM TECHNOLOGY
References
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B.G., Lemmens, A., Libai, B., Neal, D. and Provost, F., 2016. In Pursuit of Enhanced
Customer Retention Management: Review, Key Issues, and Future
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Bukhari, A.N. and Kazi, R., 2016. CRM triggers effectiveness through Customer
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Jain, Y. and Patel, N., 2016. Analysing impact of online CRM practices on companies
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King, D.M., Dhameeth, G.S. and Kim, J.S., 2017. Modeling Moderating Effects of
Customer Lifetime Value (CLV) and Referral Value (CRV) on Customer Service of
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