The role of CRM in financial crisis
By Ms. Sahar Ahmed Adam, G-CMU
It is a well-known fact that customers buy less in an economic crisis. But no matter how bad the economy may be, people will still buy and the companies will still have problems that need to be solved. But sales are not going to stop. It is because people all around have certain dreams and aspirations when it comes to owning products. From a sales point if view, it’s all about ups and downs, it’s about getting your timing right in selling your product; getting it right in launching your marketing campaigns, or getting it right in coming up with your latest pricing strategy. Even then, you would still be subject to a negative outcome due to the fickle nature of an economy in crisis.
As the global economic crisis spreads around the world; people will not spend money on anything they don’t realize as an out-and-out necessity. And that is for several reasons, that could be their budgets, their awareness of products and benefits, urgency to buy, desire to change or maybe because the product is accessible to them. However the truthful fact is that focusing on customers’ loyalty on such a business stage is the only thing that could guarantee business continuation as loyal customers always make the vast majority in terms of financial contribution to the company’s profit.
Loyalty is something that is difficult to promote or advertise explicitly by business sectors like marketing or sales. Therefore, Customer Relationship Management (CRM) rises to provide cross-functional practices promising to significantly improve the implementation of relationship marketing.
Customer Relationship Management (CRM) is a combination of people, technology and process that seeks a better understanding of the company’s customers. It is an integrated approach to managing relationships by focusing on customer retention and relationship development.
CRM is a complex but smart and interesting way of doing business. It is not just about installing software or altering customers touch points. It is about exploring our enterprises on the base of our customers’ needs. It is about becoming and remaining a customer-centric organization.
CRM is no longer a new fashionable trend that only leads enterprises to gain competitive advantage. It is now- simply put- a necessity for business survival in financial crisis.
