I need assistance with providing an feedback answer to my classmate question. He

Question

I need assistance with providing an feedback answer to my classmate question.

Here is the Topic:Explain how you would approach a CRM strategy for the company or organization where you are working.

What is positive about it? Do you think it is effective?

Here is my answer:

CRM means Customer relationship management. The type of customers differs from industry to industry, where sometimes a customer may be a recurring customer, sometimes just a one time user. So depending upon the frequency also customer relationship strategy changes.

I work in Office of Business Opportunity where 70 percent of the customers are past customers and 30 percent of the customers are new users. For a successful company in this field, an increase of recurring customers justifies how effective the customer retention/relationship strategy is.

We generally follow some important fundamentals which I going to describe below.

1. The Office of Business Opportunity Solutions Center is a resource center for established and aspiring entrepreneurs provides information on city, county, state and federal regulations affecting the operation of Houston area businesses.

2. OBOSC works closely with the University of Houston Small Business Development Center, the U.S. Small Business Administration, the Harris County Clerk, the Texas State Comptroller, the Minority Business Enterprise Center and other agencies.

3. Customer Concern - OBOSC provides no-cost programs and services that will help small business owners thrive in today’s competitive business environment.

4. Feedback mechanism - Timely feedback from customers will always assist us to improve the areas where we are weak and enables us to perform better.

5. Treating the customer as an important stakeholder - Inviting them to the important meeting where their suggestions will increase the effectiveness of the company's future prospects.

6. OBOSC's extensive referral network includes area professional and trade organizations, business incubators, as well as educational institutions.

Above are the 6 major positive points which are highly effective in increasing our loyal customers day by day.

Here is my classmate question:You mention that 70% of your customers are previous customers. Does this mean that they usually have long-standing relationships with the company? If so, I think there could be potential to increase the lifetime value (LTV) of these customers? For example, your company might be able to send tailored marketing communications to existing customers that offer compatible services. Your customers would be more likely to seriously consider these options, as they align with their existing needs.

Explanation / Answer

Yes 70 % of our customers are repeat or previous customers. The reason why we invest in repeat customers is because the cost of customer acquisition and the time frame of acquisition can be lowered with repeat customers, which is an important element in any business and it's CRM processes.

Another reason why its important to value and focus on repeat customers is because they can bring in referrals and new customers. There's also a metric to capture this, know as NPS or Net Promoters Score. This leverages existing and or repeating customers to acquire new customers.

Net Promoters Score : This score measures the possibility of an existing customer recommending our business or our firm to another customer when asked. This allows us to measure the quality and the satisfaction hat a customer derives from our business.

Yes there is a potential to increase the life time value` of these customers by

- Introducing a rewards program to recognise their loyalty and make them feel valued by offering repeat customers either a discount or added value in the services we provide them.

- Yes customisable marketing material would also make them feel more valued. This way more of the marketing material can be focused on introducing new services instead of promoting the whole business since repeat customers are already aware of the business offerings.

Another methods would be closely capturing customer interactions when it comes to repeat customers.

Capturing individual and team performance data from on the job training and post training Using operational, managerial and organisational performance metrics that would be sued to measure team, individual team members and operational performance that would compare it to the performance prior and during training. Other performance metrics, audits, screening would be used to measure the magnitude or success.  

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.