TMSS is the world's first sales and process management system for freight forwarders
1. The system does solve a long standing problem in the industry;
2. The system has great functionalities and easy to be used;
3. Customers can greatly benefit by getting a direct upgrade of the system added values;
4. AMR Research will support the system, will cover this by the following possible actions;
a. Write Up’s through the AMR Research network;
TMSS ( Transportation Management Sales System) is an innovative, first of its kind product dedicated to the transportation, logistics and supply chain management industries and does cover a fully fledged CRM ( Customer Relationship Management) sales force automation, various elements of pricing which includes high level optimizations based on historical and forecasted data. The complete system has high level business rulings which provides detailed elements of service measurements as well as complete measurements of the various parties linked to the system. Optimization tool linked to the service module provides in real time best services utilized.
SaaS CRM solutions are a catalyst for how organizations change their use of front office software systems and put users in control of customer facing business systems for the first time. SaaS enablement of software utilization without extended implementation time frames, software modification without IT bottleneck, world class infrastructure without capital expenditures and 24 by 7 uptime without around the clock staffing are a few of the compelling advantages of SaaS. Other key benefits include the following:
· Low cost of entry and lower total cost of ownership (TCO) - elimination of capital expenditures and dramatic reduction in IT salaries
· Vested vendor interests - if the application utilization is not successful, the vendor loses the customer revenue opportunity
· Much lower risk - faster implementations and outsourced expertise dramatically lower risk
· A more powerful and secure IT infrastructure - few organizations can match the infrastructure and security investments made by SaaS vendors;
The system is directed to the freight forwarders, transport companies, logistics companies, courier companies, airlines, shipping lines, post offices and rail companies. The utilization of the system by sales people, customer services people, management which makes about 70% of the employees in a traditional transport and logistics organization.
The system does cover two main areas. The one is for new customers and the second one is for customer maintenance, however as an addition to the system comprehensive functionalities, there are seven different optimization engines whereby four of them are addressing pricing issues, one is addressing services, and two are addressing sales optimization innovations.
TMSS combines fully dedicated CRM for the industry (which is completely different from the traditional CRM and does cover all the needed functionalities to create real opportunities through several automation capabilities as well as covers maintenance of existing customers with the potential of maximizing opportunities throughout the multi-module environment (air, sea, road, courier, logistics, transport).
The two areas of coverage, the new business and the existing business has comprehensive amount of tools (some in an automated functionalities, capabilities) and they do cover full customers data, new and existing as well as profiling, opportunities, pipeline, sales leads, also automated (based in INCO terms), full marketing functionalities with internal full optimization engine (area of innovation).
Additionally as mentioned there are four areas of pricing optimization tools whereby one is addressed at internal pricing (in between branches globally), the other one is based on external pricing which is addressed to importers and to exporters. The third optimization engine is addressed at the bidding industry needs, and the forth one is addressed pricing comparison.
All these pricing optimization tools has comprehensive ‘achieved’ pricing which are based on INCO terms, volume, actual weight, density calculation, commodities and services benchmarking.
Next optimization engine is addressed at the service area and it does cover massive amount of events measurement, KPIs to the servicing vendors as well as to the employees as well as great amount of benchmarking which brings best service scenarios in real time.
The other two are related to the sales process and will be presented should the relevant company will be interested in pursuing negotiations.
Being SaaS application developed on .NET which certainly opens a massive door to 87% of the SMEs in the transport industry globally whereby there were no such products to accommodate their sales and business maintenance needs.
The system will not be replacing any of their existing systems. It would simply be positioned on top of their current operational and financial systems and they would have the options to either integrate TMSS through very simple web services to their operational and financial systems. They would also have the option to host their database at their premises or utilize our hosting services. My guess would be that 90% of them would recruit the TMSS system hosted by us.10 Ways an Integrated CRM Tool Can Improve the Freight Forwarding Sales and Operations Process
The Customer Relationship Management (CRM) and sales process for freight and logistics is considerably more complex in today’s dynamic global business environment than it has been in the past. For instance, she says, the buying decision has moved from the shipping dock and traffic department to C-level influencers. The entire CRM process as it relates to freight forwarding has evolved and requires more advanced IT tools to support this new paradigm.
“There is a number of IT solutions available that can be applied horizontally across a variety of industries to automate the sales process and manage it through CRM,” “Most are adequate solutions. However, for logistics providers, the optimal solution is an integrated ERP system that applies this discipline vertically. This is especially important for the freight forwarding industry, where CRM is an integral part of the supply chain solution as it relates to running the entire company – from sales prospecting, to quotes, operations, finance and an optimized logistics process.”
10 areas of supply chain functionality that can ensure an effective CRM process:
·Identify a Single Solution for Management Visibility
In many cases there are fragmented communications solutions that may serve one business segment more than another, and require multiple data entry. Supply chain visibility can be better accomplished by a single solution that integrates information from both sales and operations. With integrated information, sales reps can enter critical data that is used to facilitate increased sales and customer service by monitoring project status and meeting customer deadlines. Operations management is then able to utilize the same, uniform information for reporting and oversight without requiring additional data entry. Offering management visibility is a by-product of the sales effort, but invaluable to ongoing operations.
·Establish Effective Freight-specific Marketing Tools
Key to improving CRM and increasing sales is continually building the sales funnel through effective marketing to both existing customers and prospects. A proper freight CRM process can target marketing efforts based on attributes that only freight-specific CRM can deliver: shipment activity, lane segments, trade profiles, deliverables, etc.
·Institute Data Efficiencies
Sales and marketing is the first contact with the customer/prospect. Prospects turn into quoting opportunities, shipments and revenue. If a customer record is entered into a CRM tool, then into a separate freight system, and then a financial system, there is no integrated efficiency developed beyond the original point of origin. IT solutions with an integrated CRM process enables sales, operations, and finance to work from the same records, increasing companywide operating efficiencies.
·Ensure Data Quality through a Single System
Data quality is even more of an issue for companies than efficiency. Changing customer organization details, contacts, and procedures is an administrative nightmare with multiple data systems within a company. A single data system with a common point of customer input ensures the entire team – from sales through operations to finance – has access to the same updated information to ensure a seamless flow of quality information.
·Improve the Customer Experience
the sales process begins with your company contact sitting down across the desk from a prospect customer asking for business and committing to SOPs. Communicating these SOPs to operations and adhering to them is difficult. An integrated CRM solution extends beyond sales, allowing a customer profile to be established that includes operations. A properly integrated CRM solution does not require sales to send memos, but rather enables the system to automatically inform operations of the dos and don’ts of managing that account.
·Create Sales Management Visibility
Sales and CRM effectiveness is ultimately measured with numbers. Management needs visibility of sales efforts to evaluate operating performance and strategy. Asking what issues are affecting sales is an important element in establishing management visibility of the operating process. Is there a common theme that can lead to opportunities if addressed? How many calls are being made; what is the call cycle for major accounts; how does the sales funnel look for the next week, month, quarter, and year? These are all metrics that can be harvested from any good CRM process, but an integrated CRM procedure enables these items to be segmented by quotation, customer, SOP, trade lane, tonnage, destination point and delivery date, creating accurate reporting information throughout the entire sales and marketing system.
·Establish Quoting and Communications Guidelines
accurate quoting is the second, and often the most important step, in obtaining business for your company. This can be as simple as a one-time ad hoc shipment or as complex as a request for a detailed proposed rate study. Everything your sales department has done up until that point must be accessible to sales and operations for quoting. An integrated IT-based CRM program ensures a more efficient and effective quoting and communications process by permitting real-time cross-functional accessibility to client data by the various business segments involved in the sales and operational processes.
·Ensure Transparent Data Repository
A properly utilized CRM process offers transparency to the customer relationship within a logistics operation. Ultimately relationships are between the customer and the logistics company, not individuals. An integrated CRM process provides for a smooth transition in the event of staffing changes or employee turnover.
·Improve Financial Visibility
your sales department needs a single point of access for client intelligence, quoting visibility, and financial visibility. A single, integrated CRM system will provide this, while ensuring security and giving access only to the information required in order completing specific tasks necessary within the supply chain process.
·Institute an Effective Sales Process
The obvious and most important value question asked about CRM should be: “Does our CRM process help sales reps work more efficiently and increase customer interface, or does it detract from time spent pursuing prospects to enter additional information needed by sales management and operations?” An effective CRM effort generates comprehensive, relevant reports and permits the sales process to increase the time spent with customer interaction. An integrated CRM system seamlessly benefits sales management and operations on the backend without redundant entry by sales. It enables sales to manage customers, develop call cycles, and become more efficient as a company. An inadequate CRM tool will be met with resistance. A good CRM process self-perpetuates with sales and customers. As the sales department sees their efforts integrating into the calendar, eliminating manual call reporting, and offering their customers better results through customer service, they realize it maximizes their earning potential…just don’t tell them it is a management tool.
“Following these essential guidelines in establishing the right single-source CRM solution enables the sales team to be more efficient and sell more, while providing the entire sales team with virtually seamless visibility throughout the CRM process. In doing so, it provides operational management with a clear view of what is happening throughout the entire freight logistics process and helps improve your company’s supply chain efficiency and ROI,”
Freight Forwarding Sales Process Requires Higher Level Of Professionalism
In today’s increasingly complex global business environment, the sales management process in the freight forwarding industry requires a vigorous new level of professionalism to be effective.
Unlike days gone past, the sales process within the freight forwarding industry today reflects the fact that purchasing decisions are being made increasingly at the C-level executive or board room echelon, as opposed to the old traffic manager and shipping room floor paradigms. This means that today’s sales and marketing efforts require a greater degree of corporate participation, cross-departmental IT integration and advanced sales tools to support this new business model.
The key to a successful sales process today is the establishment of freight-specific sales and marketing tools within a comprehensive Customer Relationship Management (CRM) application. The forwarding and logistics market is evolving into an increasingly competitive and tight margin industry that warrants a new level of professionalism well beyond that of what a single sales manager can deliver. Today, a robust, integrated CRM tool provides the best opportunity to execute the sales value proposition by communicating significant sales data to all pertinent personnel, including operations, finance and IT departments.
Since stand-alone CRM applications cannot offer the efficiencies and quality of an integrated sales process, the optimal solution is an ERP-like system that automates the sales process and creates management visibility throughout the supply chain, not horizontally, but vertically. This enables the sales process to flow in both directions between sales, operations and management.
Because sales management today cannot deliver in a vacuum, we have identified 10 ways companies can improve sales and operations through an integrated IT-based sales process.
Develop a single point of contact with a customer for enhanced communications between sales and operations. If a single element of information is kept in redundant systems, it opens up quality issues and questions regarding the accuracy of sales information. Utilizing integrated information ensures cross-departmental precision and facilitates increased sales and customer service.
Operations should avoid having a single additional element of work to accommodate just the sales process. Rather, the information from operations should flow seamlessly to the sales department. Management is then able to utilize the same, uniform information for reporting and oversight without requiring additional data entry.
Automate the workflow with a single database. If all the intelligence that sales gather is available to operations, it not only reduces redundancy, but provides management with clear visibility across the sales team’s efforts. Data quality is even more of an issue for companies than efficiency. Changing customer organization details, contacts, and procedures is an administrative nightmare with multiple data systems within a company and should be avoided.
Provide a single CRM system for pipeline visibility. Customers and sales often dictate specialized reporting during the sales process that is required from operations. By automating your sales management system, the sales department can set up automated reporting and pull it seamlessly from operations for quality control and efficiencies. This can be better accomplished by a single solution that integrates information from both sales and operations. This also provides vastly improved customer service.
Set up controls for customer tariffs for freight and handling. By automating this functionality within a single sales platform, the ratings are automatically transmitted to operations and warn them to utilize customer tariffs at invoicing.
Establish a consistent, companywide system. By avoiding cross-departmental confusion, spot quotes can be entered and tracked accurately and systematically throughout the system and warns operations at rating and invoicing. This avoids costly rework, and more importantly, helps create a more positive customer experience.
Maintain customer status awareness throughout the process. Operations should alert sales seamlessly out of the automated single system database. This improves overall communication and documents that each transaction was completed in a timely manner.
Utilize IT-based sales management communications. General sales call notes, proposals, emails and other sales documentation are more accessible to operations with a click of the mouse and provide increased data accuracy and total customer status.
Establish a CRM model that enables the sales team to see a dashboard synopsis of operational activity via automated document modules for real-time activity status without requiring operation resources to compile it for them.
Maintain transparency to the customer relationship. Operational quote activity should be transparent and visible to the sales department personnel who can properly follow up on a timely basis. The result will help identify shipment activity, lane segments, trade profiles, deliverables, financial data and call cycles, creating more efficiency and the ability to win more business.
The development of a more professional, robust IT-based sales management process is dependent upon building an integrated sales funnel through effective CRM tools to both existing customers and prospects via accurate data and effectual communications among trading partners. A properly automated and integrated freight sales process can greatly enhance target marketing efforts in today’s global economy. This, in turn, optimizes management viability across a variety of industries, and manages it throughout the entire sales process.
Identify a Single Solution for Management Visibility In many cases there are fragmented communications solutions that may serve one business segment more than another, and require multiple data entry. Supply chain visibility can be better accomplished by a single solution that integrates information from both sales and operations. With integrated information, sales reps can enter critical data that is used to facilitate increased sales and customer service by monitoring project status and meeting customer deadlines. Operations management is then able to utilize the same, uniform information for reporting and oversight without requiring additional data entry. Offering management visibility is a by-product of the sales effort, but invaluable to ongoing operations.
Establish Effective Freight-specific Marketing Tools Key to improving CRM and increasing sales is continually building the sales funnel through effective marketing to both existing customers and prospects. A proper freight CRM process can target marketing efforts based on attributes that only freight-specific CRM can deliver: shipment activity, lane segments, trade profiles, deliverables, etc.
Institute Data Efficiencies Sales and marketing is the first contact with the customer/prospect. Prospects turn into quoting opportunities, shipments and revenue. If a customer record is entered into a CRM tool, then into a separate freight system, and then a financial system, there is no integrated efficiency developed beyond the original point of origin. IT solutions with an integrated CRM process enables sales, operations, and finance to work from the same records, increasing companywide operating efficiencies.
Ensure Data Quality through a Single System Data quality is even more of an issue for companies than efficiency. Changing customer organization details, contacts, and procedures is an administrative nightmare with multiple data systems within a company. A single data system with a common point of customer input ensures the entire team – from sales through operations to finance – has access to the same updated information to ensure a seamless flow of quality information.
Improve the Customer Experience the sales process begins with your company contact sitting down across the desk from a prospect customer asking for business and committing to SOPs. Communicating these SOPs to operations and adhering to them is difficult. An integrated CRM solution extends beyond sales, allowing a customer profile to be established that includes operations. A properly integrated CRM solution does not require sales to send memos, but rather enables the system to automatically inform operations of the dos and don’ts of managing that account.
Create Sales Management Visibility Sales and CRM effectiveness are ultimately measured with numbers. Management needs visibility of sales efforts to evaluate operating performance and strategy. Asking what issues are affecting sales is an important element in establishing management visibility of the operating process. Is there a common theme that can lead to opportunities if addressed? How many calls are being made; what is the call cycle for major accounts; how does the sales funnel look for the next week, month, quarter, and year? These are all metrics that can be harvested from any good CRM process, but an integrated CRM procedure enables these items to be segmented by quotation, customer, SOP, trade lane, tonnage, destination point and delivery date, creating accurate reporting information throughout the entire sales and marketing system.
Establish Quoting and Communications Guidelines Accurate quoting is the second, and often the most important step, in obtaining business for your company. This can be as simple as a one-time ad hoc shipment or as complex as a request for a detailed proposed rate study. Everything your sales department has done up until that point must be accessible to sales and operations for quoting. An integrated IT-based CRM program ensures a more efficient and effective quoting and communications process by permitting real-time cross-functional accessibility to client data by the various business segments involved in the sales and operational processes.
Ensure Transparent Data Repository A properly utilized CRM process offers transparency to the customer relationship within a logistics operation. Ultimately relationships are between the customer and the logistics company, not individuals. An integrated CRM process provides for a smooth transition in the event of staffing changes or employee turnover.
Improve Financial Visibility Your sales department needs a single point of access for client intelligence, quoting visibility, and financial visibility. A single, integrated CRM system will provide this, while ensuring security and giving access only to the information required in order completing specific tasks necessary within the supply chain process.
Institute an Effective Sales Process The obvious and most important value question asked about CRM should be: “Does our CRM process help sales reps work more efficiently and increase customer interface, or does it detract from time spent pursuing prospects to enter additional information needed by sales management and operations?” An effective CRM effort generates comprehensive, relevant reports and permits the sales process to increase the time spent with customer interaction. An integrated CRM system seamlessly benefits sales management and operations on the backend without redundant entry by sales. It enables sales to manage customers, develop call cycles, and become more efficient as a company. An inadequate CRM tool will be met with resistance.
A good CRM process self-perpetuates with sales and customers. As the sales department sees their efforts integrating into the calendar, eliminating manual call reporting, and offering their customers better results through customer service, they realize it maximizes their earning potential…just don’t tell them it is a management tool. “Following these essential guidelines in establishing the right single-source CRM solution enables the sales team to be more efficient and sell more, while providing the entire sales team with virtually seamless visibility throughout the CRM process. In doing so, it provides operational management with a clear view of what is happening throughout the entire freight logistics process and helps improve your company’s supply chain efficiency and ROI,”
G-ILS has developed an ON demand CRM with an optimization sales management engines catered for the servicing industries, covering Logistics, Transport, Insurance, Finance, Banking and a Generic module that does cover all other verticals;
These industries suffers from a high level number of transactions, with very high level of error rates, which subsequently does cost companies a large amount of money; Our range of products will eliminate in large most of these concerns, and will install very high level of standardization that will let company gain additional revenues, and improve margins;
The Global Servicing industries which does cover Transportation, freight forwarding, Logistics, Insurance, Banking and financial industries with current spending of 7.1 Trillion Dollars an annually and with massive amount of annual transactions has recognized the fact that with this type of transactions and spending they would need to have an integrated CRM and controlling TMSS (Transport Management Sales System) that would be able to perform an ultimate sales management of accounts as well as potential accounts through one system that would be able to provide them all the key fundamentals needed to make real time decisions as well as grow the business in the right directions.
G-ILS on Demand Integrated CRM Solution can provide the servicing industries with a truly unique, robust and flexible CRM on Demand that enables complete and comprehensive management of existing accounts as well as in depth management of potential accounts tunnelled through sophisticated high-level Business Intel licence capabilities.
Through Transportation, freight forwarding, Logistics, Insurance, Banking and financial industries synchronization sales transactions, G-ILS on Demand provides a complete and comprehensive level of sales and customer services platform to plan forecast and execute the sales and customer services transactions throughout all modes of transport.
G-ILS is positioned as a complete solution for the global and local servicing industries organizations throughout the world. With the capabilities of complete integration to all operating systems, G-ILS is able to analyze the comprehensive amount of data tunnelled through the system and would help companies to improve in the most fundamental areas , revenue growth, yields improvements , complete operation efficiencies and tremendous improvements on the service levels.
The servicing industry consist of several segments, all are linked to similar processes, and commonly share the same symptoms as far as customers and data management; as the industry has moved forward in the recent years the industry has recognized the needs of managing data in a professional manner, as well as making sure that the investments in IT equipment will have well controlled ROI (Return on Investment) , as well as represents better value for the company and its customers;
The industry global size represents one of the top global spending industries; this creates a world of opportunities for the G-ILS range of products, based on this we have built a range of products that could provide complete overall solutions based on current well known shortfalls;
The key would be to turn the SERVICE Industry management into a strategic advantage; G-ILS on demand CRM solution for both customer maintenance as well new Sales Process, provides a clear management path to improve all key business fundamentals; G-ILS improves most sales processes through all the modes of transport; The system increases reliability, control, and precision through the full cycle of transportation and Logistics;
G-ILS on demand management fully supports multiple logistical roles, including internal transportation departments, Logistics service providers, and all freight forwarders; the complete suite solution does provide multi-module management solution;
General Company Description
TMSS ( Transportation Management Sales System) is an innovative, first of its kind product dedicated to the transportation, logistics and supply chain management industries and does cover a fully fledged CRM ( Customer Relationship Management) sales force automation, various elements of pricing which includes high level optimizations based on historical and forecasted data. The complete system has high level business rulings which provides detailed elements of service measurements as well as complete measurements of the various parties linked to the system. Optimization tool linked to the service module provides in real time best services utilized.
Potential customers in the following sectors;
Logistics;
Transport;
Freight Forwarding;
Insurance;
Banking;
Financial Industry;
Potential Investors;
Possible equity;
Global presence;
Customer relationship management
CRM - principles, strategy, solutions, applications, systems, software, and ideas for effective customer relationship management
Customer Relationship Management, or CRM, is an essential part of modern business management. This CRM article is provided by Ellen Gifford, who specialises in helping organizations develop excellence in CRM, and this contribution is gratefully acknowledged.
What is Customer Relationship Management, or CRM? Customer Relationship Management concerns the relationship between the organization and its customers. Customers are the lifeblood of any organization be it a global corporation with thousands of employees and a multi-billion turnover, or a sole trader with a handful of regular customers. Customer Relationship Management is the same in principle for these two examples - it is the scope of CRM which can vary drastically.
CRM focuses on the relationship
Successful organizations use three steps to build customer relationships:
· determine mutually satisfying goals between organization and customers
· establish and maintain customer rapport
· produce positive feelings in the organization and the customers
CRM conditions
The organization and the customers both have sets of conditions to consider when building the relationship, such as wants and needs of both parties;
· organizations need to make a profit to survive and grow
· customers want good service, a quality product and an acceptable price
Good CRM can influence both sets of conditions.
Why do organizations undertake CRM?
CRM is a new concept to many organizations. If it's new to you, here's why most forward-thinking organizations devote lot of energy and resources to the set up and management of a CRM capability.
How CRM impacts on the organization
CRM can have a major impact on an organization through:
· shifting the focus from product to customer
· streamlining the offer to what the customer requires, not want the organization can make
· highlighting competencies required for an effective CRM process
Why does the organization need CRM?
The ultimate purpose of CRM, like any organizational initiative, is to increase profit. In the case of CRM this is achieved mainly by providing a better service to your customers than your competitors. CRM not only improves the service to customers though; a good CRM capability will also reduce costs, wastage, and complaints (although you may see some increase initially, simply because you hear about things that without CRM would have stayed hidden). Effective CRM also reduces staff stress, because attrition - a major cause of stress - reduces as services and relationships improve. CRM enables instant market research as well: opening the lines of communications with your customers gives you direct constant market reaction to your products, services and performance, far better than any market survey. Good CRM also helps you grow your business: customers stay with you longer; customer churn rates reduce; referrals to new customers increase from increasing numbers of satisfied customers; demand reduces on fire-fighting and trouble-shooting staff, and overall the organization's service flows and teams work more efficiently and more happily.
Features of good CRM
The old viewpoint in industry was: 'Here's what we can make - who wants to buy our product?'
The new viewpoint in industry is:
· 'what exactly do our customers want and need?' and
· 'What do we need to do to be able to produce and deliver it to our customers?'
This is a significant change of paradigm and a quantum leap in terms of how we look at our business activity.
What do customers want?
Most obviously, and this is the extent of many suppliers' perceptions, customers want cost-effective products or services that deliver required benefits to them. (Benefits are what the products or services do for the customers.) Note that any single product or service can deliver different benefits to different customers. It's important to look at things from the customer's perspective even at this level.
More significantly however, customers want to have their needs satisfied. Customers' needs are distinctly different to and far broader than a product or service, and the features and benefits encompassed. Customers' needs generally extend to issues far beyond the suppliers' proposition, and will often include the buying-selling process (prior to providing anything), the way that communications are handled, and the nature of the customer-supplier relationship.
Modern CRM theory refers to the idea of 'integrating the customer'. This new way of looking at the business involves integrating the customer (more precisely the customer's relevant people and processes) into all aspects of the supplier's business, and vice versa. This implies a relationship that is deeper and wider than the traditional 'arms-length' supplier-customer relationship.
The traditional approach to customer relationships was based on a simple transaction or trade, and little more. Perhaps there would be only a single point of contact between one people on each side. All communication and dealings would be between these two people, even if the customers' organization contained many staff, departments, and functional requirements (distribution, sales, quality, finance, etc).
The modern approach to customer relationship management is based on satisfying all of the needs - people, systems, processes, etc - across the customer's organization, such as might be affected and benefited by the particular supply.
Generating a customer focused CRM solution
So what do we need to make this quantum leap of customer integration?
A new way of thinking:
· change in paradigm
· change in the messages sent and received
· change in the overall culture
And a new way of doing things:
· processes that are capable and effective
· structures and systems that support a business centred on its customers
· connectivity (end-to-end processes) both internally and externally (e.g., with suppliers)
Customers' expectations
If an organization cannot at least meet its customers' expectations it will struggle.
Ideally a business organization should exceed its customers' expectations, thereby maximising the satisfaction of its customers, and also the credibility of its goods and services in the eyes of its customers.
Customers normally become delighted when a supplier under-promises and over-delivers. To over-promise and under-deliver is a recipe for customers to become very dissatisfied.
Rule No 1 - You cannot assume that you know what a customer's expectations are ... You must ask.
Rule No 2 - Customer expectations will constantly change so they must be determined on an on-going basis.
The expectations of different customers for the same product or service will vary according to:
· social and demographic factors
· economic situation
· educational standards
· competitor products
· experience
Therefore, given all these variable factors, it is no surprise that one size certainly does not fit all.
Ask your customers what is important to them. Find out why your customers do business with you. There are a wide variety of relationship drivers. For example:
· quality
· price
· product
· location
· customer service
When you ask you might discover some factors that you'd perhaps never even considered, for example:
· health and safety support
· systems compatibility
· contract structure
· distribution flexibility
· technical support
· troubleshooting and problem-solving, to name just a few
What service features will keep your customers loyal to you? Find out.
CRM as a process
CRM can be regarded as a process, which has:
· identifiable inputs
· identifiable components
· identifiable characteristics, which define CRM for your organization and customer base
· capacity for improvement and evolution over time
Managing customers
Why manage customers? Customers are the usual source of income for an organization. (If not then they will certainly leverage your income, as in the case of readers of a free publication which is funded by advertising. As such there are two types of customers: the readers and the advertisers).
Customers are also an exceptional source of information - information which is vital to enable a business to succeed; i.e., giving customers what they want.
Managing customers entails:
· knowing what customers want and need - which enables you to focus your production and service efforts
· knowing which products or customers have most growth potential - which enables you to focus on developing highest potential
· knowing which products or customers are most or least profitable - which enables you to focus on maximising profit
· knowing which customers will be advocates and supporters - which enables you to provide references, case studies, and to safely test new products and services
Achieving good CRM
Achieving effective Customer Relationship Management requires many organizations to adopt a new perspective. Consider the following:
· traditional customer service is something you 'do to' the customer
· modern Customer Relationship Management is 'done with' the customer
The second statement is emphasises the big differences between conventional traditional customer service, and the modern progressive CRM approach.
Your relationships with customers should be ongoing, cooperative, and built for the long term.
Organizations that have many transitory relationships with customers consequently have to spend a lot of money on finding new customers.
The cost of keeping existing customers is a tiny fraction of the cost of acquiring new customers.
Pareto's Law (‘the Pareto Principle')
Pareto's Law is commonly known as the 80:20 rules. Typically in any organization:
· 20% of customers account for 80% of your turnover
· 20% of customers account for 80% of your profits
· 20% of customers account for 80% of your service and supply problems
It is important to know is which customers fit into which category and then to manage them accordingly.
Highly satisfied customers who perceive a high value in your products and services commonly make excellent advocates for your organization - nurture these customers and give the special treatment.
Dissatisfied customers who perceive a low value in your products and services are potential saboteurs. These customers could have little or no loyalty and may actively 'engage' against your organization. Therefore you should seek to rebuild relationships and trust, and a new basis for a future relationship, or manage the separation with dignity, professionalism and integrity.
Focus on building relationships
The essential CRM focus of any organization should be on developing core competencies, and an overall strategy of building customer relationships. In this way, all efforts in the organization can be aligned to:
· customers and the culture of exceeding of customer expectation
· understanding and managing the people impact on the culture of the organization
· customers being recognised and treated as partners
· the value of relationship-building being valued
· service being seen as a value-adding activity
· reward and recognition being based on customer focus i.e., 'going the extra mile'
· evidence of corporate support for service activity
Characteristics of excellent CRM
The following characteristics are associated with delivery of excellent CRM:
· reliability
· responsiveness
· accessibility
· safety
· courtesy
· consideration
· communication
· recognising the customer
· competence
'Moments of truth'
'Moments of truth' are encounters with customers which cause them to form a view of the organization based on how they are engaged, particularly compared to their expectations.
Expectations can be met, exceeded or disappointed. Moments of truth can therefore be positive, in the case of meeting and exceeding expectations, or negative, in the case of disappointment. Monitoring the 'moments of truth' allows the company to focus on improving areas responsible for negative customer experiences.
Remedial action to prevent repetition is crucial. A single mistake is forgivable. A repeat rarely is.
If you put things right your customers will see that they are important to you. Put things right and you will be seen as a supplier who knows how to manage quality.
Organizations that fail to put right things that go wrong, might as well say to the customer, "You are not important to us". Failing to put things right and to prevent reoccurrence says of the organization "We are not capable of managing quality service."
Bear in mind also that research has proven time and again that when an issue of poor service to a customer is satisfactorily resolved by a supplier, the customer increases their loyalty to the supplier to a higher level than existed prior to the problem.
An approach to managing 'moments of truth' involves 'continuous improvement'. This entails processes that continually monitor, check and resolve negative moments of truth by ensuring alterations happen to the customer process, and integrating these changes into 'business as usual'. Here are the elements of such an approach:
· define the cycle of service
· identify negative moments of truth
· define the reasons (i.e., root causes - not symptoms)
· develop solution/s
· test solution(s)/review/amend
· implement
· monitor impact on the cycle of service
This is similar to the EPACA model - the helix of continuous improvement.
Negative moments of truth carry a lot of weight with the customer and will adversely affect the relationship.
To maximise positive moments of truth - set standards in your processes.
Standards using SMART criteria Standards (which may also be objectives) can be established using the SMART framework.
· Specific
· Measurable
· Agreed
· Realistic
· Time-bound
CRM and communications
Communication is central to any successful relationship. In terms of Customer Relationship Management, communication needs to be consistent and high quality; as determined by:
· on time
· focused
· relevant
· reliable
· coherent
Importantly also, for effective communications it's the message and meaning that is received that counts, irrespective of what the communicator thinks they've said, or written. Communications must be judged most vitally by the reaction of the receiver. If the reaction is not good then the communication is poor.
The information contained in a CRM system allows communication to be directed at the correct audience, in the correct way. The communication system must also encourage and facilitate honest and actionable feedback.
Feedback from customers - especially complaints - is essential for good organizational performance and ongoing development. Most organizations avoid, discourage and hide from complaints. Don't. Complaints are free guidance for improving your quality, and free opportunities to increase customer loyalty.
People and CRM
As with any other business process your people have a huge impact on the success of the CRM process.
Successful and effective Customer Relationship Management people tend to display the following key characteristics:
· positive attitude
· people orientation
· organizational skills
· analytical skills
· customer focus (natural empathy)
· understanding of the link between CRM and profitability
On the subject of empathy: Empathy is about understanding, not necessarily agreeing. Effective customer focus enables the organization and its staff to see both sides, and to work with the customer to arrive at a mutually satisfactory and sustainable solution. Agreement alone amounts to capitulation, which is neither practicable nor sustainable.
Benefits of effective CRM
There are significant business benefits which accrue from an effective, integrated Customer Relationship Management approach. These include:
· reduced costs, because the right things are being done (i.e., effective and efficient operation)
· increased customer satisfaction, because they are getting exactly what they want (i.e., exceeding expectations)
· ensuring that the focus of the organization is external
· growth in numbers of customers
· Maximisation of opportunities (e.g., increased services, referrals, etc.)
· increased access to a source of market and competitor information
· highlighting poor operational processes
· long term profitability and sustainability
