The sales organisation is becoming a strategic imperative rather than a tactical tool. For many companies, the strategic management of customers and customer relationships has become a higher priority than conventional marketing activities, which is why we are already seeing major organisations transferring resources from marketing to strategic sales and account management initiatives, to achieve better alignment and to achieve the goals of business strategy.
Specifically, the ability of firms to exploit the true potential of the sales organisation requires that companies adopt a new mindset about the role of the selling function within the firm, how the sales force is managed, and what salespeople are expected to produce. The sales function must serve as a dynamic force of value creation and innovation within the firm. Many marketing strategy implementation failures are caused by poor alignment of strategy with sales capabilities.
Perhaps the biggest reason is that many traditional marketing and sales approaches were not designed for complex consultative and collaborative, technology-based customer relationships where for example, the product is being created jointly by a buyer and a seller as it is being 'sold'.
Sales capabilities provide critical resources which differentiate suppliers from each other in the eyes of professional purchasers. One of the results of the revolution in information technology is the rise of the sophisticated customer who often finds traditional sales models obsolete, if not offensive.
As a result, some global pharmaceutical companies, recognising that the era of the 'hard sell' is over in their sector, have been developing new sales models.
The thinking is that fundamental changes in business buying require a strategic response from sellers that is more robust than a ready acquiescence to demands for reduced prices and improved customer service. Let us accept that conventional sales practices are no longer effective in many situations; but what about customer service? Does your company consistently go beyond the expected service to offer the augmented service and the potential service?
If you aren't sure, maybe your company does have a problem that is best addressed through strategic customer management, for as Drucker reminds, the purpose of a company is to create and keep a customer.
And that, we suggest, is what strategic customer management is all about. Shall we take a closer look at approaches to developing and implementing strategic customer management next week? We welcome reader comments on the top stories of the day.
Please understand that comments are moderated and it is not always possible to publish all that have been submitted. Submit your e-mail address below. We'll send you an email containing your password. Your password has been sent to: Please create a username to comment. Give a clear concept and accelerated me know more about CRM and its benefits to the enterprises as learning is continuous process!!!
Can you give me , how the customer interaction management,helpful for customer acquisition.? What are the three most important things to consider when choosing a CRM system for your company? Cost, ease-of-use training needed , and functionality across departments. Not necessarily in that order. Borrowing from the notorious triple constraint of project management, pick two according to the company: As a third item: The ability of the vendor to respond to changes in the industry and offer new functionality in the future.
Too many people invest in a CRM before they know what features they want and will need. Value - does the CRM cost a bit more but have everything you need including email marketing, lead scoring, marketing automation? If you save on a cheap crm, but then have to invest in a marketing automation platform, well now you are paying for TWO systems AND you have to figure out how to integrate them so no data is lost.
Make sure there is free support and that they have an on boarding process. Regardless of how 'easy' a CRM seems to be, you will need help getting setup. That is just the nature of CRM as a technology and a foundation for your business. Ability to perform a variety of integration and cloud. That's why still waiting of some new CRM.
I feel like much of this misses the main point. What do you want your sales org to do? All of the rest of the criteria I have seen is a factor that will help increase revenue.
But bottom line, you want a system that will help increase revenue. If customization can be done or not. The price, if its affordable for you or not. The features and its USP, How it is better from the other. The best cloud-based CRM software should be designed to compile information on customers across different channels - or points of contact between the customer and the company which could include the company's website, telephone, live chat, direct mail, marketing materials and social media.
Know the objective of your business objective 2. Know how to benchmark what you need the CRM- Value. Thank you for this detailed article! I believe everyone should consider the price factor before investing, because there are similar systems online but with different price range. This will force you to think about the strategy and goal that you want to pursue with the tool.
Efficiency is the key to buying a crm because you are investing not in a tool itself but into a better version of your business. This has to be done well. Hello, this is my first time hearing about this software, so may I have your help: I want to know if CRM softwares can help us regarding this issue? Well said, Cloud based CRM's are on demand as they are fast, reliable and easy deployment. The main vendors like Salesforce, Microsoft are designed focusing on adoptability to support multiplatform business, meanwhile there are other Cloud CRM products with similar robustic features but focusing on targeted business platforms, like Customer Value maximization CVM product specialized in Financial business which makes them to stand ahead of major vendors in their arena.
But in the minds of customers these are all easily substitutable and highly commoditized. A competitive advantage must meet the four criteria of being relevant, measurable, unique and sustainable. When you recognize these criteria, you may also recognize the final four competitive advantages. As CRM is a 23 year old industry, and these CRM failure reports repeat themselves year after year, the statistics are cause for proactive risk analysis and mitigating measures.
Here are the top causes of CRM failures, and the preemptive measures that can prevent, mitigate or respond to these challenges. The often cited but seldom realized degree customer view is a holistic customer profile record that captures five types of customer data from across channels and systems, aggregates that data to understand what's important to customers, and applies that customer intelligence to deliver personalized and engaging customer experiences and achieve company performance objectives.
Good customer strategies are built on good customer personas and insights. In fact, without customer intelligence your customer strategies are essentially guesswork and your execution is trial and error.
But when personas show when, why and how customers make buying decisions they drive the actions that increase customer acquisitions and retention. Despite being used interchangeably, customer segments and customer personas are not the same. They are applied to different use cases and achieve different objectives. This article identifies the use cases and benefits for each, and how they work together to improve customer engagement, conversions and retention.
Consumer insights are essential to create products that are embraced, content that will engage, offers that will convert and customer experiences that will deliver repeat purchases. However, acquiring insights for low consideration purchases, that are fast, frequent, impulse decisions can be tough. Here the top 5 methods to acquire consumer insights. Personas backed with the right insights identify the highest fit customers, enable the most precise value propositions, and shift focus from broad customer segments you could sell to, to highly focused customers you should sell to.
Unfortunately, most personas don't deliver. Here are the most common customer persona design and implementation mistakes - and how to prevent them. Design thinking is set of principles that include empathy with users or customers, collaboration among multi-disciplinary teams, goals geared to individual emotions, a discipline of prototyping, tolerance for failure and a relentless commitment to learning and reinvention.
Here is how design thinking is being used to solve tough customer and business problems. Business leaders are using design thinking to implement customer strategies such as customer experience management and even wholesale company transitions from product-centric to customer-centric business models. This article explains why design thinking is highly synergistic with CRM and shares design thinking frameworks from Stanford d.
Why Culture Eats Strategy for Breakfast. Corporate culture and strategy are separate but symbiotic. Corporate culture is the human performance engine that drives the level of success, or failure, for every business strategy. Culture is a precursor and top contributing factor to anything and everything that requires employee effort. Here is why company culture eats strategy for breakfast.
There are a lot of things a company can do to drive business growth. But the one thing that will directly impact everything else is corporate culture. A high-performance growth culture is an enabler of business agility and sustained company growth.
"Strategic Customer Management takes a thorough, relational approach to the customer. By integrating relationship marketing with CRM and adding a service perspective on business, it goes far beyond conventional marketing books.3/5(2).
Clearly there is a critical need for a strategic customer information database that is being continually refreshed. Referring to the earlier proposed purpose of an organization of “identifying, attracting and keeping the customers you want most through provision of an appropriate value proposition”, having an excellent customer information system is a critical success factor.
Customer management strategy is indeed the foundation of how a sales organization is run. The essential elements of a customer management strategy are: 1. Managing Relationships. For every sales professional, the sales culture in which they work shapes their understanding of what it means to manage customer and prospect relationships. Strategic Customer Management:: Designing a Profitable Future for Your Sales Organization. The potential gains from the evolution of conventional sales operations into strategic customer management underlines the case for a strategic perspective on the sales function, which does not simply examine the tactical management of sales.
'Strategic Customer Management takes a thorough, relational approach to the customer. By integrating relationship marketing with CRM and adding a service perspective on business, it goes far beyond conventional marketing books. His research interests are in strategic marketing, most recently emphasizing the sales/marketing interface and the impact of strategic customers on buyer-seller relationships. Nigel has published twenty books and written around articles and papers appearing in the management literature throughout the world.