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Goals & Objectives of Companies Using CRM

Instructor: Savannah Samoszuk

Savannah has over eight years of hotel management experience and has a master's degree in leadership.

Companies that use customer relationship management (CRM) have a different point of view when it comes to their customers. They are customer focused and driven. This lesson will take a look at the goals and objectives of companies that use CRM.

Rachel has been going to the same salon for ten years. Every time she schedules an appointment, they have her information and know what type of service she wants, depending on the time of year for which she is scheduling. She feels valued because the salon also sends her birthday cards every year. This is an example of a company that uses CRM to analyze customer interactions.

Customer Relationship Management Defined

Companies that use customer relationship management (CRM) know the value in their customers and they use their relationships with customers to improve their business. Customer relationship management is when a company uses techniques and strategies to track customer interactions and data. Companies that focus this much on their customers have a different view of their customers which gives them different goals and objectives. We will take a look at how companies who use CRM hone in on share of customer, lifetime value of a customer, customer equity, and customer prioritization.

Share of Customer & Lifetime Value of a Customer

Companies who use CRM realize that customer share is more important than market share. It is more valuable to focus on keeping your current customers versus putting all of your efforts into finding new customers. This where CRM comes into play; it helps to focus on your current customers' trends and needs instead of finding new customers. If you are able to keep and attract your current customers this will prove to be more profitable for you than spending time trying to attract one new customer.

For example, Rachel has been going to the same salon for ten years. Maintaining that relationship has proven to be more profitable for the salon than attracting one new customer who might come to the salon once. Companies who use CRM see the bigger picture when it comes to their customers. They see the lifetime value of a customer and what that can mean for the company versus a new customer's one-time profit. The goals of a company that focuses on CRM is the share of a customer and the lifetime value of that customer.

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