What is CRM?
Customer Relationship Management (CRM) is a tool that businesses use to manage their interactions with their current and potential customers, by combining marketing strategies and technology to increase customer satisfaction, efficiency, customer retention, and profits (Kulpa, 2017). CRM is very important to marketers because it’s a tool in the form of software that collects data to help communicate with customers in a simplistic way. For example, marketers may use touchpoints such as email, direct mailing, websites, social media, personalized telephone calls, and/or live chat, etc., to observe, organize, and optimize their interactions with leads and customers (Kulpa, 2017).
In fact, there are three major types of CRM:
- Operational (marketing, sales, service)
- Analytical (data collection to improve customer satisfaction)
- Collaborative (pooling customers’ data between multiple companies)
Operational CRM focuses on creating a better experience simultaneously for the business and its customers. Analytical CRM collects, monitors, and stores data in which customers’ patterns, purchasing history, and sporadic wants/needs are quantified. And collaborative CRM allows companies to share customers’ information with other businesses with regard to tailoring products and services to customers’ preferences (Kulpa, 2017). According to Kulpa (2017), “there are many different types of CRM. However, most CRM software primarily focuses on one major category” (para. 10).
CAP4Kids: Type of CRM
The Children’s Advocacy Project for Kids (CAP4Kids) utilizes operational and analytical CRM. CAP4Kids does not sell any products or conduct marketing campaigns, however, it uses its website to remain in contact with its customers. Its website is frequently updated to keep customers and prospects informed with new information about local resources and events that are family-friendly. Also, the website incites a call-to-action (CTA) through its newsletter that is emailed to subscribers once or twice per month.
Customer Service Policies
Although, CAP4Kids’ website is accessible to its users there does not appear to be any links that explain its customer service policies. The only reference that is made is at the very bottom of the site that states, “we do not recommend or endorse any particular resource on CAP4Kids. However, we do endorse the careful review and evaluation of services that best meet the needs of your family” (CAP4Kids, 2015, para. 8).
Customer-facing Business Processes
It can be assumed that CAP4Kids’ business processes include: planning, networking with multiple companies, and convincing customers to use their resources website. CAP4Kids does not provide access to its annual business report, however, one should assume that the company has some type of budget. On the other hand, it appears that the company has implemented planning as one of its major business processes in that the content is strategically placed and organized on its website and in its electronic newsletter. Also, CAP4Kids has set up a process to network with other companies to become aware of the services they provide and whether or not those services are beneficial to its customers. In addition, the company promotes its website to local residents, social services, and healthcare professionals, to use the suggested resources that CAP4Kids provides.
When reviewing the organization’s actual site it’s very clear that CAP4Kids’ customer service is a key customer-facing function that appears to be just as crucial as its business process, to ensure its longevity and success. Through the website, customers may contact CAP4Kids with questions, comments, or concerns. In addition, the organization uses social media which include Facebook and Twitter, allowing customers to provide direct feedback and receive a response within 24 to 48 hours. CAP4Kids’ purpose of this function is to produce satisfied customers (Markgraf, 2018).
Should CAP4Kids Change Its CRM Program?
CAP4Kids’ should not change its CRM program from operational to analytic or collaborative. According to Kulpa (2017), “analytical CRM frequently uses data mining and pattern recognition to accomplish this task — it works well for companies in higher priced markets with a lot of competition” (para. 12). Therefore, CAP4Kids would not benefit from an analytical CRM program because it does not have any products or services directly to its customers. On the other hand, collaborative CRM would not benefit the company because “it focuses more on markets where innovation and new product development is paramount to a company’s success” (Kulpa, 2017, para. 13). The only change that CAP4Kids should make to its existing CRM program is a periodic upgrade. According to Chipman of CRM Switch (2011), “the upgrade of an existing system is sometimes needed to support newer versions of operating systems and office suites. Also, an upgrade may be necessary to take advantage of new features and functionality provided by the vendor” (para. 2). CAP4Kids existing CRM program appears to be the right fit for the services it provides to customers.
References
CAP4Kids. (2015). Columbus families matter. Retrieved from http://cap4kids.org/columbus/
Chipman, S. (2017). 5 reasons companies upgrade their old crm system: instead of buying a new one. CRM Switch. Retrieved from https://www.crmswitch.com/buying-crm/five-reasons-upgrade-crm/
Kulpa, J. (2017). Why is customer relationship management so important? Forbes. Retrieved from https://www.forbes.com/sites/forbesagencycouncil/2017/10/24/why-is-customer-relationship-management-so-important/#56bcadd17dac
Markgraf, B. (2018). Customer-Facing Vs. Business-Facing. Chron. Retrieved from http://smallbusiness.chron.com/customerfacing-vs-businessfacing-50329.html