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Six Ways to Create Customer Value With CRM Applications
Pricing power is hard to come by in a competitive marketplace, and this is especially true in a recession. In order to defend profit margins, companies must find every way they can to add value. This means that besides providing their usual products or services, companies should make themselves more valuable to their customers by providing value-added customer service. Thorough use of CRM software can help.
CRM applications have the potential to do a great deal more than act as a passive storehouse of customer contact information. Focusing on the right data can provide insights into how customers use the companys product or service. Actively mining that data can use those insights to think along with customers and create a closer relationship.
The Challenge to Pricing Power
The message about pricing power is written in the numbers. The year-over-year change in the Consumer Price Index had slipped into negative territory by the end of 2008. Low inflation is a good thing, but deflation means a whole new set of challenges. In this environment, companies have to contend not only with falling unit volume, but with price reductions as well.
Customers, in turn, come to expect price concessions, and in many cases are forced by their own adverse circumstances to insist on them. One way to turn this cycle around is to take the focus off of pricing by providing more value for the money.
Six Ways CRM Applications Can Help
Companies can use their CRM software to compile and act on data which can make it easier and/or more cost-effective for customers to buy from them. CRM applications can help businesses:
Whether pursuing new CRM software or seeking to get the most out of existing CRM applications, companies should think beyond assembling data they might find useful. Using CRM software in a way that is also useful to customers can create the added value necessary to defend profit margins.