What is CRM?
To create stability in today’s flourishing marketplaces, each business unit prioritises long-term partnerships with its clients. Customers today want not just the greatest products and services, but also face-to-face businesses that can provide them with what they need immediately. Client relationship management is a straightforward notion or technique for developing customer interactions while lowering expenses and enhancing your company’s productivity and profitability. A CRM software consultant is an expert on guidance regarding CRM solutions.
The ideal CRM system will centralise all of your company’s data sources and give an integrated, real-time perspective of your customer data. CRM systems are diverse and necessary. But their main objective is to efficiently assist their customers and may be used in both small and medium-sized businesses and large businesses. Organisations typically consist of different departments, most of which have direct or indirect access to customer information.
The CRM system centrally collects and checks this information before allowing departments to address it. Let’s take an example of an international telephone centre that integrates a telephone with a computer system or laptop using a CRM tool called “XYZ .”The system will now automatically know which customer is calling. Before an executive picks up the phone, the CRM system displays the customer’s details on the screen of a computer or laptop, the opportunity to do business with that particular customer, what the customer has previously purchased or ordered, and the amount.
The possibility of this is a future purchase. You can also emphasise which product is best for your customer. The Treasury department can view information related to the current balance, and the Accounting department can view information about the customer’s recent purchases. This data is stored in the CRM database and can be used as needed.
Price sensitivity can be defined as an awareness of the cost window or scope in which a customer does business. All customers are always cost-sensitive and mainly focus on buying low-priced products. However, customer cost sensitivity is highly dependent on market conditions.
For example, if a product becomes very well-known and sophisticated on the market and all companies adopt it, you need to focus on the technical side, not the cost. When doing this, these customers are the least cost-sensitive. When a product becomes popular in the market because of similar but more prominent products from emerging competitors, the competition reduces the product’s value, and companies rarely take an interest in it. In this scenario, the customer has the right to be very cost-sensitive, knowing that he can negotiate with a more significant supplier. This is when a customer is called a cost-sensitive customer.
Suppliers need to understand how sensitive their cost-sensitive customers are. Therefore, they always need to focus on some strategies to put their clients in the least price-sensitive stage.
For example, if you lower the price of a towel by $ 1, the towel will be put up for sale. Everyone could buy it in a hurry, but reducing the cost by $ 1 the car makes no difference. It won’t attract customers at all. Therefore, the main challenge for all organisations is to make price changes noticeable to all customers.
The supplier’s price sensitivity strategy also depends on the customer’s product usage. Customers have two categories depending on the purchasing aspect: heavy buying users and light buying users.
For example, consider an organisation where 30% are severe buyers, and 70% are light buyers. An organisation is currently partially reducing the price of its products for heavy users. So, it could be possible to grow. The growth will project a significant percentage from 30% to 40%. And obviously, 40% of affluent buyers and 60% of light buyers are more productive for the company. They will have more impact than 30% of wealthy buyers and 70% of straw buyers.
Therefore, knowing a customer’s price sensitivity will always help the supplier entertain and satisfy the customer. If the customer is very competitive and undertakes a short-term project, it is not worth it. The supplier will not convince the customer of a high-end or expensive product. So, digital transformation consulting has a lot of scope today.