3.01 Common CRM practices

First things first. Before adopting any new customer relationship management practices or purchasing CRM software, managers should assess the business and create clear strategies and goals for CRM. What are the main objectives the business wants to achieve through CRM? Organizing customer information for use by the sales team? Identifying the company's most valuable customers? Getting feedback on customer experiences? Knowing the answers to these questions prevents the business from wasting time and money on unnecessary procedures or irrelevant technology. Having a clear strategy also helps managers to integrate the CRM program throughout the entire organization more easily.

Some common customer relationship management practices include:

• Training employees in CRM.
  This includes both new-employee training and continuing professional development for current employees at all levels. Employees need to learn how to execute CRM procedures (what to do in case of a complaint, for example), how to operate CRM software, and how to "go the extra mile" to develop and maintain good relationships with customers.
  
  
• Empowering employees to make CRM decisions.
  Employees need the authority to create and maintain customer relationships. A salesperson, for example, should be able to offer a valuable customer a discount if it helps to make the sale and increase that customer's loyalty to the business. Having to get managerial permission each time could slow down the process and hamper the establishment of a positive customer relationship.
  
  
• Allowing customers to provide their own information.
  Every CRM program is based on customer information. Businesses can gather information without asking customers for it—they can keep track of what products are purchased, how much money is spent, etc. However, it is the information customers volunteer that can take CRM to the next level. Customers can provide feedback about their experiences with the company, offer suggestions for new goods or services, and give specific information about what benefits or "perks" they prefer. Businesses must keep in mind that customers will volunteer information only if they feel they can trust the business. This applies to providing feedback and suggestions as well as to providing personal information, such as addresses and telephone numbers. Customers should always feel that they are in control of their own information, and that a business will use it only to provide them with a better customer experience.
  
  
• Managing marketing campaigns.
  The marketing department uses information from CRM to target customers, promote the business's product(s) to those customers, and track their responses.
  
  
• Managing sales leads.
  The sales department uses information from CRM to qualify and prioritize sales leads. This makes more efficient use of their time and effort in the selling process.
  
  
• Managing customer service.
  Customer service is an important part of CRM. Relationships can be made or broken based on how a business treats its customers after a sale. Businesses can build customer loyalty by providing excellent customer service through maintenance and repairs policies, warranties and guarantees, and ongoing customer support.
  
  
• Managing customer complaints.
  This ties in to providing excellent customer service. Have you ever called a business with a complaint and talked to an employee who didn't seem to be "on your side"? On the flip side, have you ever experienced a business "bending over backwards" to fix a problem and make sure you're satisfied? How a business handles complaints greatly affects its ability to maintain long-term relationships with its customers.