How to Measure Success in Advance of Implementing a CRM System

Finding prospects and converting them into customers is the preoccupation of transactional or traditional marketing. Customer relationship marketing recognizes that it is not enough to attract buyers. The focus of relationship marketing is on developing long-term relationships with new and existing clients, improving corporate performance through customer loyalty and retention. Relationship management also focuses on employees as internal customers. A good relationship with both internal and external customers is the key to the success of any business.

Things You'll Need

  • Up-to-date customer and employee database
  • Purchase history of goods or services offered
  • Business financial records
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Instructions

    • 1

      Review the company expenditure. The amount of money used on promotional services such as running advertisements is a measure of the success of a CRM system. A successful system saves the business money by targeting only responsive and frequent customers with the relevant marketing strategies. Supermarkets for examples spend less when informing their smart card holders directly, who are regular customers, of new smart points offers compared to running an advertisement to the general public. If the business is still spending a lot on promotional tools, the CRM system is faulty and needs reviewing.

    • 2

      Monitor profit or losses incurred. Study the customer database to get insight into what commodity or service the customers prefer. Use the information to modify the strategy with the business plan to meet the increased demand for preferred goods and services. A successful system attracts and retains customers generating profits for the business.

    • 3

      Study the customer database to determine how new customers learn about your business. Satisfied customers always refer their friends and loved ones to the business. If existing customers refer new customers to the business, that is a sign the CRM system in place works as it should.

    • 4

      Study the employee database to determine the frequency of firing and hiring employees. An employee can either make or break a business. A disgruntled employee more often than not speaks ill of the business creating negative public relations for the business. Satisfied and well-treated employees extend their satisfaction to their daily tasks, creating efficiency within the organization.

    • 5

      Review the customer database to determine the type of feedback received from the customers. Take note of the number of complaints, if any, against any of the employees or the service in general. If the number of complaints is high then you should revise the CRM system in place.

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