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If customer loyalty is your objective then Customer Relationship Management could be your answer.  The CRM concept became popular in the 1990’s as consumers became less loyal and more demanding of the businesses they purchased goods and services from.  A decade later, companies began leveraging software applications specifically designed for CRM; these applications were an extension of database marketing.   Yet as information has become readily accessible online and often independent of the company’s control through blogs, user reviews, and discussion boards the “R” in CRM, the relationship component has become increasingly important.

Given the current economical climate the free based expansion of Web 2.0: blogs, twitter, and wikis can offer companies, particularly start-ups, a way to tap into the changing demands of their customer base.  This data alone does not result in developing strong relationships, the relationship is a two-way interaction that depends as much on the consumer as those trying to manage them.  Incorporating the “R” into both the culture and the strategy of an organization is pivotal to building a customer-centric organization.

So how do you prepare for a successful CRM initiative that has a strong focus on the “R”?  Try these 5 tips:

1. Ingrain the CRM initiative into the overall business plan. If the primary goal is revenue growth the CRM goals should be customer retention.
2. Create a customer-centric culture throughout the organization.  Implementing ‘buy in’ programs with achievable goals is one way to highlight the value of CRM.
3. Use online resources to identify your most ‘vocal’ clients and ensure their satisfaction by providing promotions and additional services to keep them content.
4. Dedicate resources to monitoring what is being posted about your organization to give you the opportunity to react accordingly.
5. Research organizations that have been successful with CRM.  Identify which best practices can be applied to your business environment.

Regardless of the size of your organization, the CRM mission is the same: learn more about your customer base and leverage that knowledge to create brand loyalty and increase revenue.

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