Do Businesses Need CRM or Customer Relationship Management?

customer complaintsHave you heard the phrase “The Customer Is Always Right”? I guess this is not new to you or maybe you have heard this a long time ago if you are in my age bracket or if you are in the age bracket of my nephews twenties below, somehow you have read it or heard it somewhere. I remember when I was a ten year old kid when I was playing inside my uncle’s hardware store. I saw a plastic bag hanging in the ceiling with a print that says “The Customer is Always Right”. Back then there were only few plastic bags and more expensive than paper bags. Then I ask my uncle what is the meaning of that? why is the customer have to be always right? what if the customer steal your items? is it right? I don’t know why ask those stupid questions but maybe because of innocence I wonder what those words means.

Then he told me that it’s because through customers we made our living. It is obvious that without customers, we don’t have a business. Period. But it still made me wonder how will the customer be right because sometimes we encounter unreasonable customers and those who waste our time just wandering around and pretend that they are customers. Sometimes they are just asking for a price or asking information about the product but in the end, will not but your product. Maybe the right phase would be “The Right Customer is Always Right”. I thinks thats a better saying by just adding the word “right” . Why I say that? It’s because if you got the right customer, then any demand he or she makes, complains, feedbacks are all reasonable and will be helpful to your business. Having the wrong kinds of customers will just waste your time and energy to figure out how you will improve your business.

This is the goal of Customer Relationship Management. By using that skill, it will help build your business by teaching you ways to keep loyal customers and attract new ones. By understanding CRM, it will lead you to discover that customers should be treated differently depending on their value. It teaches a business to see each customer as an individual and each interaction with them is unique. Learning from each new exchange would guide the business on future interactions and help it determine how much investment is needed to serve the customer’s needs, preferences and values. (source: Entrepreneur Magazine)

But it’s sad to know that many companies ignore and don’t value such thing as CRM maybe because it is seen as a short term strategy. I don’t like to mention my experience on my employment in the previous company I work with but maybe it will be helpful to add it here. Imagine, a multinational company without a personnel or a procedure to handle customer feedback or complaints. I wonder how it passed the ISO audit without having such procedures. But in fairness, the ISO representative did gave the company a non-conformance grade for that. Just wondering how a company that existed for many years without giving importance for customer relationship still exist today? I guess it’s because of monopoly or just simply the owner have a very deep pocket that can afford a lot of mistakes. So much for that, if you want to have a very detailed information about CRM ( Customer Relationship Management ) just follow the link here: Customer relationship management in wikipedia