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1. Decreases Advertising Costs
2. Makes it easier to target specific customers
3. Allows greater competition based on services rather than price.
4. Prevents over-spending on low-value customers.
5. All of above
5. All of above...................
The answer is number5. All of the above.
Customer Relationship Management revolves around customer focus. Companies need to keep in mind and maintain the demands of customers. Keeping customers satisfied and providing the right services as per the requirements along with quality assurance, great service and information adds value to the company's reputation.
1. Decreasing advertising cost:
having a good CRM system or database allows the company to identify and communicate with its customers directly rather than using mass advertising, media advertising or other such ways which cost more and could affect advertising budgets which do not turn into sales. If you have a good CRM system you can communicate with your customers frequently and your customers will know who you are due to your feedback processes, quality of goods and assurance of your services. There is a very small requirement for advertisement to target other potential customers that have not been acquired as most of the advertising would be done through existing customers through word of mouth. hence this decreases advertising costs.
2. Makes it easier to target specific customers:
Yes CRM does make it easier to target specific customers. When you record information into the CRM system, you maintain a record of purchases, preferences, feedback, buying patterns, spending patterns about your customers. this helps the company identify which customers would be interested in purchasing a certain product and what is actually required in order to target them with the right message, right slogan, right design and requirement. the more information you record with CRM the more accurate your targeting towards customers would be.
3. Allows for greater competition based on services rather than price:
As the main focus is to keep the customer satisfied, companies focus on providing services that use advanced systems, technology, raw materials to manufacture and supply the market with the best of the best service hence trying to overcome competition. There is no focus on pricing in the market as customers will purchase what is best from the company that lives up to its reputation. One main example is Apple & Mac Products. Compared to other products in the electronic industry, the company manufactures products to meet design, technology and quality of software as well as hardware. although the configuration of its phones and computers are defeated by other competitors like Lenovo, HP, Samsung, certain customers always return to purchase Mac products as they are satisfied with the service, the quality and the products offered without worrying about the price to be paid.
4. Prevents over-spending on low-value customers:
Relating to point number2, this is again related to maintaining a good CRM system. which allows you to trace data and identify the right customers for the right product advertising and expected purchasing trends. hence when you have a good advertising campaign targeting the right audience through the information possessed through CRM, it avoids expenditure on the un necessary customers that would not consider buying the products. Therefore you are able to forecast a more realistic number of customers who are willing to spend more and cater to their needs by providing more customized services and premium offers where as low end customers could be provided with the basic level of services or products that meet their needs.
i would choose num (5) because there are many reasons why organization invest in a new CRM system.
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