Customer Relationship Management: Developing Central and Essential Competencies

Pareto's Principle states that twenty percent of customers, clients, or patrons account for eighty percent of the company's turnover, twenty percent of customers account for eighty percent of the business profits, and twenty percent of customers account for eighty percent of service and supply problems.

Hence, in every organization, it is important to note that there are different kinds of customers.

The key to understanding Pareto's Principle is finding the customers into which category they perfectly fits. Otherwise, it will be very hard to manage the very people who feed the business.

Only satisfied customers that receive excellent services through CRM can become great advocates of the business. On the other hand, dissatisfied ones can be great saboteurs because they see low value not just in your products, but most especially in your services.

Every organization needs CRM (customer relationship management), not just because it helps increase profit and revenue, but builds crucial relationships that is essential in developing competencies. It has the capability of improving services, reducing costs, time waste, and customer complaints. On the other hand, it also helps its users by increasing their performance and reduces stress. This helps to determine satisfying goals for both parties - business and customers, and helps maintain a good rapport and healthy relationship.

Whatever you do, you need to have a proper plan before taking a huge step. An effective executive knows what to do and where to start. Otherwise, your business will hit the bottom eventually. You need to know your requirements, needs, people, documentation goals, achievable objectives, before engaging with software. Always remember that technology only supports your goals not the end itself.

In order to develop and maintain the central and essential competencies, the organization must continually exceed customer expectations and provides efficiency in its staff. In the past, customers and organization are two different entities that struggle against each other in the battle field of supply and demand. Today, with the help of technology, both parties become partners in the business because relationship is being valued.

Traditionally, organizations treat customers as consumers and nothing more else. It is always the question of "what to do to" the customers. But with this business solution, it becomes "what to do with" the customers.

The relationship steps into a different new level of doing business. In the end, what makes your business profitable and successful is not just hard work, but also efficiency.

David Wong is an experienced CRM consultant with more than 13 years of experience. Having worked in many successful business solutions implementations, this allowed David to develop in-depth experiences in this area and also understand what it takes to be successful in the people, process and technology dimensions in this field.

To know more on how to choose the right customer relationship management solution for your business, visit this page - http://www.wired2cloud.com.au/choosing-the-right-customer-relationship-management-solution/