customer relationship management
Customer relationship management or CRM is not just the application of technology, but is a strategy to learn more about customers' needs and behaviours in order to develop stronger relationships with them. It enables businesses to:
Understand the customer
Retain customers through better customer experience
Attract new customer
Win new clients and contracts
Increase profitably
Decrease customer management costs
It is usually more profitable in the long run for a company to keep existing customers than to find new ones. Financial services businesses – which are often in danger of being perceived as a commodity by customers – should take this to heart and work to deliver a level of service that keeps customers from switching to a different provider. Experience has shown, however, that most financial services businesses have much to learn about keeping customers.
For example, the financial analysts at one insurance company knew quite well that customers who stayed with the business for a number of years – who usually went on to purchase additional products, expand coverage as their family situations changed and give referrals – were more profitable than new customers. Yet the sales force at this company received more than twice the commission on new business than they received from policy renewals. Naturally, the agents preferred spending their time on finding new customers. Therefore, despite knowing the importance of keeping customers, the company's renewals rate hovered just above 80 percent.
Natalie dalbo, the customers relations manager in Allianz insurance company has been interviwed by the members of our group in regards to the implementation of CRM.she started her career with this company in march 2007 and worked at various levels, from head office to the front end of the business and in most cases wil helping to develop a customer service policy for an entire organisation; managing a team of customer services staff; handling face-to-face
Understand the customer
Retain customers through better customer experience
Attract new customer
Win new clients and contracts
Increase profitably
Decrease customer management costs
It is usually more profitable in the long run for a company to keep existing customers than to find new ones. Financial services businesses – which are often in danger of being perceived as a commodity by customers – should take this to heart and work to deliver a level of service that keeps customers from switching to a different provider. Experience has shown, however, that most financial services businesses have much to learn about keeping customers.
For example, the financial analysts at one insurance company knew quite well that customers who stayed with the business for a number of years – who usually went on to purchase additional products, expand coverage as their family situations changed and give referrals – were more profitable than new customers. Yet the sales force at this company received more than twice the commission on new business than they received from policy renewals. Naturally, the agents preferred spending their time on finding new customers. Therefore, despite knowing the importance of keeping customers, the company's renewals rate hovered just above 80 percent.
Natalie dalbo, the customers relations manager in Allianz insurance company has been interviwed by the members of our group in regards to the implementation of CRM.she started her career with this company in march 2007 and worked at various levels, from head office to the front end of the business and in most cases wil helping to develop a customer service policy for an entire organisation; managing a team of customer services staff; handling face-to-face