New Business Ideas

Customer relationship management is an important part of any business in order to keep clients happy. It is imperative to ensure that customers are happy otherwise you will not have a business.

Customer relationship management is the strategies, processes, people and technologies that are used by companies in order to successfully attract and retain customers. If this is achieved then a company can enjoy maximum corporate growth and great success. Obviously this is what any business wants which is why it is an important aspect of day – to – day business operations.

The different types of this management can range from simple off the shelf contact management products to high – end interactive systems that combine sales, marketing and executive information systems. The type of management that a company uses is most likely to depend on the size and type of business. For example, a small business with only a few customers will only need a simple system as it’s easier to monitor customers.

However, a large company with thousands and thousands of customers is going to find it near impossible to know every single one of their customers. For this reason a more complex system will be required in order to help them achieve a satisfactory level of customer relationship management.

Customer relationship management is important because it is vital that all businesses know everything they need to know about their customers. This can range from their spending habits, the budget they have, areas of interest and what they want in the future.

The reason why this information can be so beneficial to a company is because if you know how your customers are thinking then you know how to target your products at them, for example, if 90 percent of your customers watch television between 8pm and 10pm every night then you know this is a good time to advertise you product. If you don’t know this information you could be advertising at 6pm when none of your customers will see your advertisement.

Customer relationship management also allows a company to monitor whether they are losing or gaining customers. If they are losing customers they can find out why and try to come up with ideas of getting them back and keeping their current customers loyal to them.

There are so many advantages of maintaining customer relationship management that every company should do it. It is by far the best means of ensuring that you have a happy and loyal clientele.

Are you aware of who your customers are? Are they male or female? What is their age? Are they married or single? If you don’t answered to any these questions you are not alone. Many organizations are unaware of who their customers are.

In a recent study when people asked these questions:

1)Roughly what proportion of your customers are under the age of 35?
2)What proportion of your customers are female?

almost two of three will answer ‘I don’t know!’

However, it was noted that smaller companies had a stronger awareness of customer demographics when compared with larger operations.

Here’s my working definition of demographics: the statistical characteristics of human populations, such as age, gender, geographic location, marital status, ethnicity, and income, used by businesses to identify markets for their goods and services.

Demographics are used to identify who your customers are (now and in the future), where they live, and how likely they are to purchase the product or service you are selling.

While demographic studies of customers frequently confirm what you might already intuitively know, they just as often can hold surprises. After all, few companies have a single customer profile.

Why are demographics important?

First, they help you in deciding which channels of communication are most valuable to you.

Secondly, for new and potential customers, knowing your target audience is crucial.

Third, demographics serve as a means of locating geographic areas where the largest number of potential customers live.

Here is the result of research regarding female demographics very interesting.

Women are making over 85% of consumer purchases, and influencing more than 95% of total goods and services.

Smalter distinguishes the purchasing process women and men go through. The biggest one, she says, is that women need to feel more of a connection to the customer service person they are dealing with. They need to trust the corporation and the brand. Price becomes secondary. Additionally, women take in a lot of information, including recommendations from friends and family, company and brand reputation, feelings about her contact person, and how the brand will impact her life.

This is not the process men go through. Men, on the other hand, take a systematic approach, allowing outside influence to some degree, but mostly men are focused on price.

Wouldn’t this information be important for you to know when creating your product and/or service, and influential in targeting your market?