What exactly is the customer relationship management cycle? Tune in to find out.
Customer Relationship Management Cycle Definition
The customer relationship management cycle is a systematic process that starts from understanding the customer. Then, it continues ending with solving customer complaints.
You can see the customer relationship management cycle in the following.
Customer Relationship Management Cycle Steps
The customer relationship management cycle has 6 steps. These are below:
#1: A customer enters an organization’s place and asks for a product or service.
#2: The organization provides the product or service to the customer.
#3: The customer pays the company for their product or service.
#4: The company contacts the customer to find out how they feel about their product or service.
#5: The company determines what it can do to improve its relationship with the customer and then acts on those changes.
#6: The cycle repeats itself with each new customer that enters that organization’s place.
Theoretical Framework of Customer Relationship Management Cycle
You can see the customer relationship management in another way as well. This is by using a theoretical framework that includes 3 components:
Understanding your customer
This is where you get to know your customers better so that you can provide them with products and services that they will like and buy from you again.
In this component, you also create a system that collects feedback from your customers so that you can improve your products and services if needed.
Enriching your relationship with your customers
This component of the customer relationship cycle is where you make sure that you have a good relationship with each of your customers so that they continue to buy from you again and again.
Improving your performance
In this part of the cycle, you take care of all of your business operations so that you can provide high-quality products and services to each of your customers and have a profitable business model overall.
Using these 3 components, it will be easy for any organization to manage its relationships with its customers. So, they can increase their revenues as well as their reputation in the marketplace over time.
Extra Tips for Your Customer Relationship Management Software
Many companies have customer relationship management software that they use to manage their relationships with their customers.
It is up to you to decide whether you want cloud-based software or one that you will store on your own server.
The advantage of using customer relationship management software is that it will allow you to focus on other things like creating new products or improving your customer service. At the same time, the software manages your relationships with your existing customers.
Because there are different types of customer relationship management software out there, it is important to do some research on the type that will work best for your needs and budget.
In fact, some CRM systems are free, but many are paid. So, choose one that fits in with your business model and one that you can afford.
That way, you will get the most out of the customer relationship management and the return on investment (ROI) for using this type of system.