2024

CUSTOMER RELATIONSHIP
MANAGEMENT
TRAINING DELIVERED FOR STAFF KRESTA LAUREL LIMITED BY
UGRT CONSULTING
ABOUT THE TRAINING

The core purpose of every organization is to enhance its overall performance which can only be
achieved through efficient performance of employees. Performance means the achievement of
something or working efficiently and effectively. To improve the performance of an organization,
achieve desired outcome and gain competitive advantage over its competitors, it would not be
possible without the efficient and effective performance of employees

Research and practice have shown that there are numerous organizational factors such as
teamwork, employee empowerment and training that can influence employee performance. It is
with focus on improving employee performance that this training on Customer Relationship
Management (CRM) was put together.

Presented with research backed facts about CRM and devoid of lengthy descriptions, the training
material is easy to read and understand. With adequate case studies embedded in the training
manual, it participants to learn from one another and past experiences as well as give real live
perceptive to their understanding of CRM and its effects on organizational performance.

About UGRT CONSULTING

UGRT Consulting is the consulting unit of United Global Resource Technology Limited, a multi-
faceted company with interest in Real Estate development, Information Technology, Financial
Services and Consulting. At UGRT Consulting, our focus is Financial Consulting, Management
Consulting including Human Resources services, Real Estate Consulting and Financial Advisory
Services. With a team of experts and a deep Knowledge of the Nigerian economic landscape, we
are able to provide our clients a timely and advise to help move their business forward.
Copyright

All the contents of this manual are adaptions of works of many authors. They are:

1. Training Manual: Customer Relationship Management. Compiled by: World Bank-Higher

Education for the Twenty First Century Project
2. Lecture Notes. Customer Relationship Management ENT 206, National Open University
of Nigeria
3. Chat Notes. ChatGPT. OPenAI Company
TABLE OF CONTENT

Section One: Introduction to Customer Relationship Management

1.0 Introduction
1.1 Aims and Objectives
1.2 Learning Outcomes

Section Two: Understanding Your Customer

2.0 Who are Customers?
2.1 Types of Customers
2.1.1 Direct Customers
2.1.2 Internal Customers
2.2 Customers’ Needs and Expectations
2.2.1 Basic Needs and Expectations of your Customers
2.2.2 Services and Customer Expectations
2.3 Happy Customer

Section Three: Delivering Good Customer Service and Care

3.0 What is Customer Service
3.1 Customer Interaction Cycle
3.2 Customer Care
3.2.1 Importance of Customer Care
3.2.2 How to Make Every Customer a “Special” Customer
3.3 The Role of Communication in Customer Service/Care Delivery
3.4 How to be a Good Listener

Section Four: Customer Relationship Management

4.0 Customer Relationship Management
4.1 Goals of Customer Relationship Management
4.2 Components of Customer Relationship Management

Section Five: How to Become a Customer Service Champion-Practical Approach

5.0 Managing Customers’ Complaints
5.1 Best Practices for Solving Customers’ Problems
5.2 Obtaining Feedbacks from Customers
5.2.1 Benefits of Using a Feedback Process
5.2.2 Tips for Managing Feedback from Customers
5.3 Dealing with Difficult Customers
5.4 How to Become Customer Oriented
SECTION ONE

INTRODUCTION TO CUSTOMER
RELATIONSHIP MANAGEMENT
1.0 INTRODUCTION

An effective Customer Relationship Management (CRM) is the bedrock of any successful

management and developing adequate CRM strategies and tools will be an important step in
enhancing customer satisfaction, increasing sales and customer loyalty. This training is therefore
designed to equip participants with the knowledge, skills and best practices required to excel in
managing and cultivating rewarding relationships with your customers.

1.1 AIMS AND OBJECTIVES

The aims and objectives of the training is to achieve the following:

❖ Expose the participants to modern concepts and practices of customer relations.

❖ Emphasize the role of customer relations function in modern organization.
❖ Equip the participants with essential knowledge, skills and attitudes necessary to deliver
an outstanding customer service.

1.2 LEARNING OUTCOMES

At the end of the training program, participants should be able to;

❖ Understand well who are your customers and needs and expectations of each customer
group.
❖ Recognize how to deliver an excellent service to your customers.
❖ Realize how to make every customer a special customer.
❖ Assess the role of communication as a tool of enhancing customer service and
satisfaction.
❖ Appreciate the importance of customer relationship management.
❖ Learn how to handle difficult customers and customer complaints.
❖ Make out the challenges for an effective customer relation.
❖ Develop the required qualities, skills and attitude to become a customer champion.
SECTION TWO

UNDERSTANDING
YOUR CUSTOMER
2. WHO ARE CUSTOMERS?
Customers are people and organisations who need your assistance/service. They are not
interruptions to our work, but rather the reason we have a job.

2.1 TYPES OF CUSTOMERS

There are different ways of classification of customers. However, for the purpose of this training,
we would classify customers into just 2 categories:

2.1.1 DIRECT CUSTOMERS

These are the people or organisations who directly buy/use the organization’s products and
services. For example, people or organisations that buy or use Kresta Laurel products and
services.

2.1.2 INTERNAL CUSTOMERS

Internal customers are any group (or person) who relies on you to complete a task or function in
order for them to get their job done. The ramification of providing poor customer service to your
internal customers often leads to providing poor service to your Direct Customers.

EXERCISE: IDENTIFYING YOUR CUSTOMERS

Take a moment to list different customers served by you. List at least 5 each of Direct Customers
and Internal Customers.

2.2 CUSTOMERS’ NEEDS AND EXPECTATIONS

Customer need is “why” do people come to you and customer expectations are “What” do they
expect from you/your organization.

EXERCISE: IDENTIFYING YOUR CUSTOMERS’ NEEDS AND EXPECTATIONS

For each customer type which you have identified in exercise one, discuss what it is that each of
them needs and expects from you. Compare your answers with others.

2.2.1 BASIC NEEDS AND EXPECTATIONS OF YOUR CUSTOMERS

The Six Basic Expectations of Customers
1. Friendliness: Friendliness is the most basic of all customers’ needs, usually associated
with being greeted graciously and with warmth.
2. Understanding and empathy: Customers need to feel that the service person
understands and appreciates their circumstances and feelings without criticism or
judgment.
 3. Control: Control represents the customers’ need to feel they have an impact on the
way things turn out.
4. Options and alternatives: Customers need to feel that other avenues are available to
getting what they want accomplished.
5. Information: Customers need to be educated and informed about our products and
services, and they don’t want us leaving anything out.
6. Fairness: Customers get very annoyed and defensive when they feel they are subject
to any class distinctions.

EXERCISE: UNDERSTANDING AND DELIVERING CUSTOMERS’ EXPECTATIONS

Discuss with your group members, to what extend these expectations of customers are met in
your organization, identify the key barriers and write down some sound suggestions to improve
those areas.

2.2.2 SERVICES AND CUSTOMERS’ EXPECTATIONS

Services are delivered in real time therefore; if we fail to meet the customer expectations the
chances for customer dissatisfaction are more. Therefore, not like selling a product, when
delivering a service, we should pay more attention on fulfilling the customer expectations. When
a customer comes to your organisation he or she already has a specific set of expectations about
the company/your service. Normally, these expectations are formed through personal past
experience, and the experience of others with whom the customer interacts.

TEN IMPORTANT AREAS WE SHOULD KNOW ABOUT OUR CUSTOMERS

1. Who they are?

2. What they want?
3. Why do they come to us?
4. When do they come to us?
5. How do they come to us?
6. What makes them feel good?
7. What makes them feel bad?
8. What do they expect from us?
9. What do they think about us?
10. What do they think about our competitors?
EXERCISE: CUSTOMER ASSESSMENT

Discuss with your group and analyze your customers’ base on above 10 dimensions.

2.3 HAPPY CUSTOMER

Simple way to identify a happy customer is check their facial expression. However, for an
organization like Kresta Laurel, identifying a happy customer is more than a facial expression.
Identifying a happy customer is crucial for a business to understand the impact of its products,
services, and customer service strategies. Happy customers are not only more likely to return but
also to become advocates for your brand. Here are several ways to identify a happy customer:

1. Positive Feedback: One of the most direct indicators of customer satisfaction is positive
feedback. This can come in various forms, including direct compliments to your staff,
positive reviews on websites, social media praises, and favorable responses in satisfaction
surveys.
2. Repeat Business: Customers who are happy with your service or product often return for
more. Track repeat purchase rates to identify customers who consistently choose your
brand over competitors.
3. Referrals: A happy customer is likely to recommend your business to friends, family, and
colleagues. Keep an eye on referral sources and ask new customers how they heard about
you to identify when a recommendation comes from a satisfied patron.
4. Engagement: Customers who engage with your brand by signing up for newsletters,
participating in loyalty programs, attending events, or interacting with you on social
media platforms often do so because they have had positive experiences with your
company.
5. Increased Spending: Over time, a happy customer might increase the amount they spend
with your company. Look for patterns of increased transaction sizes or more frequent
purchases as indicators of satisfaction.
6. Constructive Feedback: Even happy customers can have suggestions for improvement.
The willingness to provide constructive feedback, coupled with a generally positive
outlook on your business, can signal a customer who cares and is overall satisfied.
7. Direct Communication: Sometimes, customers will directly tell you they're happy with
your service. Whether it's during a service call, at the point of sale, or through a follow-
up email, any direct acknowledgment of satisfaction is a clear indicator.
8. Survey Responses: Satisfaction surveys often use scales (e.g., 1-10) to measure
happiness. Customers who give you top marks are clearly satisfied. Pay attention to the
comments section for additional insights into their happiness.
9. Body Language and Tone: For brick-and-mortar businesses, a customer's body language
and tone of voice can be very telling. Smiles, relaxed posture, and a friendly tone during
interactions can indicate satisfaction.
 10. Social Media Mentions: Happy customers often share their positive experiences on social
media, tagging your brand or using relevant hashtags. Monitor your brand’s social media
mentions to catch these happy testimonials.

Identifying happy customers provides valuable insights into what your business is doing right and
offers opportunities to leverage these satisfied customers for testimonials, case studies, and
word-of-mouth marketing. Engage with them, express gratitude for their support, and consider
them in your strategies to improve customer satisfaction further.

FORMULA FOR CREATING HAPPY CUSTOMERS

➢ Expectation > Actual Performance (Dissatisfaction)

➢ Expectation = Actual Performance (Satisfaction)

➢ Expectation > Actual Performance (Delighting)

SECTION THREE

DELIVERING GOOD CUSTOMER

SERVICE AND CARE
3.0 WHAT IS CUSTOMER SERVICE?

Customer service is the support and assistance provided by a company to those who buy or use
its products or services. It encompasses a broad range of activities designed to enhance customer
satisfaction, resolve issues, and ensure a positive experience with the company's offerings.
Effective customer service involves understanding customer needs, providing timely and helpful
responses, and going above and beyond to meet or exceed customer expectations.

Key aspects of customer service include:

1. Support: Offering help and solutions to customers who have questions, concerns, or face
problems with a product or service. This can be done through various channels, such as
phone, email, live chat, and social media.
2. Information: Providing accurate and useful information about products or services,
including usage, maintenance, and troubleshooting tips.
3. Feedback: Listening to customers' opinions, suggestions, and complaints, and using this
feedback to improve products, services, and customer experience.
4. Resolution: Effectively addressing and resolving customer issues in a timely manner,
which may involve refunds, replacements, or other actions to rectify problems and
maintain customer satisfaction.
5. Personalization: Tailoring the service experience to meet individual customer needs and
preferences, recognizing their value to the business, and making them feel appreciated.
6. Accessibility: Ensuring that customers can easily contact the company for support
through multiple channels and receive prompt assistance.

Customer service plays a crucial role in building trust and loyalty between a business and its
customers. It impacts the overall customer experience, influences perceptions of a brand, and
can significantly affect a company's reputation and success. Good customer service not only
resolves immediate issues but also fosters long-term relationships, encourages repeat business,
and promotes positive word-of-mouth referrals.

Customer service is concerned about the following:

• Reliability
• Consistency
• Tangibles/Outlook
• Empathy
• Responsiveness/Timeliness
• Efficiency
• Quality
• First Impressions
EXCERCISE: DELIVERING A GOOD CUSTOMER SERVICE

Identify and evaluate different customer service activities delivered by your organization using
the above criteria and identify areas to be improved.

3.1 CUSTOMER INTERACTYION CYCLE

The customer interaction cycle is a specific pattern of behavior that has been found to respond
well to the customer concerns. Customers expect to be treated well in each of the five stages –
greeting the customer, understanding or knowing the customer’s needs, agreeing on the
customer’s requirements, helping the customer, and keeping a positive relationship with the
customer.

1. GREET
In the first stage of the customer interaction cycle, the service provider begins the relationship
with the customer. It is often very brief but it is very important. It creates the first impression
that will shape customer judgement about whether the organization cares enough to provide the
service. Therefore, you should be:

• Ready
• Be welcome

2. KNOW
The second stage of the customer interaction cycle focuses on understanding the needs of the
customer. It involves listening for facts, observing feelings, asking clarifying questions, and
restating important information to assure understanding. It is the most difficult stage of the
interaction because you must concentrate on what the customer is saying and avoid being
distracted by other things around you. It may seem to be a dull routine to repeatedly ask or
answer the same questions all day long. But remember for the customer, it is not repetition. It is
a valuable personalized service. You should:

• Listen
• Ask questions
• Offer Information

3. AGREE
The third stage of the customer interaction cycle assures shared understanding and agreement
on the desired response. It states the expectations and obligations of customer and the service
provider. You should:

• Restate
• Set Expectations
 • Get Agreement

4. DELIVER
The fourth stage of the customer interaction cycle delivers the product and service with
information and other assistance. It prepares the customer to enjoy a pleasant experience.

5. CONTINUE
Keeping customers builds future business. It is the fifth stage of the customer interaction cycle.
This concludes this transaction with the customer and encourages future business. This stage
offers an opportunity to build customer loyalty and to get valuable feedback on the customers’
satisfaction with your business. You should:

• Check Satisfaction
• Thank
• Bridge

3.2 CUSTOMER CARE

Simply, customer care is how much you care for your customers and how you show them you
care. Customer care, takes a broader, more holistic approach. It encompasses not just the direct
interactions a company has with its customers, but also the overall experience and relationship
the customer has with the company. Customer care is about understanding and addressing the
customer's needs, wants, and emotions throughout their entire journey with the company. It is
proactive, aiming to build a positive, long-term relationship between the customer and the
company. Customer care includes activities such as:

• Personalizing the customer experience

• Following up with customers after a purchase to ensure satisfaction
• Listening to and acting on customer feedback
• Creating loyalty programs or initiatives that reward repeat customers

The key differences between customer service and customer care are:

• Focus: Customer service is focused on solving specific issues related to products or

services, while customer care is focused on the overall relationship and experience of the
customer with the brand.
• Scope: Customer service is transactional and reactive, dealing with immediate problems
and questions. Customer care is holistic and proactive, aiming to cultivate a positive,
ongoing relationship.
• Objective: The objective of customer service is to resolve issues and facilitate transactions
efficiently. The objective of customer care is to build loyalty, satisfaction, and a positive
reputation over time.
3.2.1 THE IMPORTANCE OF CUSTOMER CARE

Customer care is very important to success of any business.

• Create a positive customer experience.

• More business, more revenue
• Enhanced public image
• Edge on Competitors
• Easy to attract new customers
• Ensure the long-term business viability of the organization
• Ease the business expansion possibilities

3.2.2 HOW TO MAKE EVERY CUSTOMER A “SPECIAL” CUSTOMER

All customers want to be treated specially. Therefore, making a customer “special” is the goal of
customer care. You can do this by doing the following:
1. Speed: In dealing with the customer, speed is important. Therefore, when dealing with
customer, do;
• Deliver on time
• Within the operating hours
• Quick response to customer inquiries
• Simple and straight forward procedures
• Don’t keep waiting
• Explain delays
• Be fast with complaints
2. Personal Touch: To make a customer special, give a personal touch to your service by
doing these;
• Know your customer well
• Cut out jargon, and explain things simply
• Respect his needs
• Use the customer’s name in all written communications and conversations
 • Accommodate the customers special requests whenever possible
3. Exceed Expectation by doing the following:
• Try to deliver sooner, faster, better, cheaper than you promised.
• Do something extra
4. Competence and Courtesy:
• Be professional
• Be friendly
• Show courtesy
• Know your manners
5. Be prepared
• Know your job well
• Know your product well
• Know your customer well
• Know your organization well
6. Follow-Up
• Stay in touch
• Be proactive

3.3 ROLE OF COMMUNICATION IN CUSTOMER SERVICE/CARE DELIVERY

Communication plays a pivotal role in customer service delivery, acting as the backbone of
creating a positive and effective relationship between a business and its customers. The role of
communication in customer service delivery can be outlined through several key aspects:

1. Understanding Customer Needs: Effective communication helps service providers

understand customer expectations, preferences, and issues. Active listening and asking
the right questions are crucial in identifying what the customer really needs.
2. Building Relationships: Communication is essential for building trust and rapport with
customers. Personalized interactions, empathy, and genuine engagement show
customers that they are valued, fostering loyalty and long-term relationships.
3. Problem Solving: Clear and empathetic communication is vital in resolving issues or
complaints. It involves explaining solutions, steps being taken, and timelines for
resolution in a way that reduces customer frustration and dissatisfaction.
 4. Providing Information and Guidance: Customers often need guidance on how to use
products or services effectively. Clear instructions, demonstrations, and proactive advice
can enhance the customer experience, reduce confusion, and prevent future issues.
5. Feedback Collection: Regular communication with customers through surveys, feedback
forms, or direct conversation helps gather insights into their experiences, expectations,
and areas needing improvement. This feedback loop is crucial for continuous service
improvement.
6. Crisis Management: In times of crisis or service failure, effective communication is critical
to managing customer expectations and mitigating negative impacts. Keeping customers
informed about the situation, what is being done, and expected outcomes can help
maintain trust.
7. Brand Representation: Every interaction a customer service representative has with a
customer reflects on the brand. Professional, courteous, and brand-aligned
communication reinforces a positive brand image and contributes to brand loyalty.
8. Cross-Selling and Upselling: Effective communication skills can also be used to identify
opportunities for cross-selling or upselling, by understanding customer needs and
suggesting additional products or services that might provide value to them.
9. Reducing Conflicts: Clear and proactive communication can often prevent
misunderstandings and conflicts. Setting clear expectations, providing timely updates,
and managing promises are all communication strategies that help in reducing conflicts.
10. Enhancing Customer Experience: Ultimately, the goal of communication in customer
service is to enhance the overall customer experience. A positive experience can lead to
repeat business, referrals, and a strong market reputation.

3.4 HOW TO BE A GOOD LISTENER

Being a good listener is crucial for effective communication and is essential in both personal and
professional interactions. Here are key strategies to enhance your listening skills:

1. Give Full Attention: Focus on the speaker without distractions. Put away your phone, turn
off the screen, or do whatever else you need to fully engage with the person speaking.
2. Show That You’re Listening: Use body language to show you are engaged. Maintain eye
contact, nod occasionally, and use other non-verbal cues like leaning slightly forward to
demonstrate your attentiveness.
3. Keep an Open Mind: Listen without judging the other person or mentally preparing your
rebuttal. Be open to new ideas, perspectives, and the possibility of changing your opinion.
4. Listen to Understand, Not to Reply: Focus on understanding the speaker’s point of view
rather than thinking about what you will say next. This requires patience and self-control
but is key to effective communication.
5. Don’t Interrupt: Allow the speaker to finish their thoughts before you respond.
Interrupting not only shows disrespect but also hampers your ability to fully understand
the message.
 6. Ask Questions: When appropriate, ask questions to clarify or deepen your understanding.
This shows that you are paying attention and are interested in what the speaker has to
say.
7. Reflect and Clarify: Paraphrase or summarize what you’ve heard to ensure your
understanding is correct. For example, you might say, “So, what you’re saying is…” This
can also help the speaker see their own ideas more clearly.
8. Empathize: Try to understand the speaker’s feelings, motives, and perspectives. Empathy
can help build a deeper connection and facilitate more open communication.
9. Avoid Jumping to Conclusions: Wait until you have all the information before making
judgments. Sometimes, what seems apparent at the beginning of a conversation might
change as more details are revealed.
10. Be Patient: Some people need more time to express their thoughts or may struggle to
find the right words. Give them the time they need without rushing them.
11. Practice Active Listening: Active listening involves engaging with the speaker’s words,
body language, and emotional cues. This might mean reflecting on the emotional
undertone of what is being said or asking how they feel about the situation.
12. Limit Your Own Distractions: If you find your mind wandering, gently bring your focus
back to the speaker. It can help to mentally summarize what the person has said to
refocus your attention.

Improving your listening skills is a process that takes time and practice. By consciously applying
these strategies in your interactions, you can become a better listener, which can improve your
relationships, enhance your understanding of complex issues, and facilitate more effective
communication.

DON’T’S OF CUSTOMER CARE

WRONG APPROACH POLITE AND FRIENDLY APPROACH

“I don’t know.” “I’ll find out.”
“No.” “What I can do is…”
“That’s not my job.” “Let me find the right person who can help
you with …”
“You’re right – this is bad.” “I understand your frustrations.”
“That’s not my fault.” “Let’s see what we can do about this.”
“You want it by when?” “I’ll try my best.”
“Calm down.” “I’m sorry.”
“I’m busy right now.” “I’ll be with you in just a moment.”
“Call me back.” “I will call you back, what is your telephone
number.”
 Best Customer Care Practices
➢ Be on time, open on time, deliver on time
➢ Follow through and deliver your promises
➢ Go the extra kilometer for customers
➢ Offer you customer options
➢ Treat customers as the MOST important part of your job
➢ Give customers your name and contact details
SECTION FOUR

CUSTOMER RELATIONSHIP
MANAGEMENT
4.0 CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) is a strategic approach that businesses use to

manage interactions with current and potential customers. It involves using data analysis and
technology to gather insights on customer behavior and preferences, with the goal of improving
business relationships, increasing customer retention, and driving sales growth. CRM systems
support this approach by collecting customer data from various channels, which can include the
company’s website, telephone, email, live chat, marketing materials, and social media.

CRM practices are designed to provide a comprehensive and integrated view of customers
across all touchpoints and departments of a company, such as sales, marketing, customer
service, and support. This holistic view enables businesses to:

1. Understand Customer Needs: By analyzing customer data, companies can identify

trends, preferences, and pain points of their customers, allowing for more targeted and
personalized offerings.
2. Enhance Customer Experiences: CRM systems help ensure that every interaction with
the customer is informed and meaningful, leading to higher satisfaction and loyalty.
3. Improve Communication: CRM provides a platform for managing all communication
and interactions with customers, ensuring that information is shared and accessible
across the organization. This results in more cohesive and consistent customer service.
4. Increase Efficiency: Automation of routine tasks, such as data entry and lead or sales
processing, frees up time for employees to focus on more complex customer needs.
CRM systems can also prompt employees to follow up on leads or check in with
customers at opportune times.
5. Drive Sales Growth: By understanding customer behaviors and trends, businesses can
more effectively cross-sell, upsell, and identify new sales opportunities. CRM also helps
in segmenting customers, enabling more targeted marketing efforts.
6. Enhance Data Management and Analysis: Centralizing customer data in a CRM system
improves the quality and accessibility of data, making it easier to analyze for strategic
insights.
7. Improve Customer Retention: By facilitating positive customer experiences and building
stronger relationships, CRM strategies help in retaining customers, which is often more
cost-effective than acquiring new ones.
8. Personalization: CRM enables the delivery of personalized marketing messages and
product offerings by understanding individual customer profiles and preferences.
9. Collaboration: Sharing customer information across departments ensures that all teams
are aligned in their understanding of customer needs and can work together more
effectively to deliver solutions.

CRM is not just a technology but a business philosophy that places the customer at the heart of
business operations, strategies, and processes. It’s about creating and maintaining meaningful
relationships with customers, thereby fostering loyalty and encouraging repeat business.
Successful CRM involves a combination of the right strategy, technology, and a customer-
centric culture within the organization.

4.1 GOALS OF CUSTOMER RELATIONSHIP MANAGEMENT

1. Enhancing Customer Satisfaction: By understanding customer needs and preferences,

businesses can offer personalized services, improving the overall customer experience.
This can lead to higher customer satisfaction rates.
2. Increasing Customer Retention: By fostering positive experiences and relationships,
CRM helps businesses increase customer loyalty and reduce customer churn rates.
3. Improving Sales Performance: CRM systems provide valuable insights into customer
behavior and preferences, enabling targeted marketing efforts and personalized sales
approaches, which can lead to increased sales.
4. Streamlining Communication: CRM platforms facilitate better communication both
within the company and with customers, ensuring that customer interactions are timely,
relevant, and efficient.
5. Automating Customer Interactions: Many CRM systems offer automation of routine
tasks, such as sending follow-up emails or marketing messages, freeing up staff to focus
on more complex customer needs.
6. Centralizing Customer Information: By consolidating customer information into a single
database, businesses can provide a unified and consistent customer experience across
all touchpoints.
7. Enhancing Marketing Efforts: CRM helps in segmenting customers, tailoring marketing
campaigns, and tracking their effectiveness, thus improving the efficiency of marketing
strategies.
8. Increasing Profitability: By improving sales and marketing efficiency, enhancing
customer satisfaction and retention, and reducing operational costs through
automation, CRM aims to increase the overall profitability of a business.
9. Data-Driven Decision Making: With the vast amount of data collected, CRM systems
can provide insights and analytics that aid in making informed business decisions.
10. Improving Product and Service Development: Understanding customer needs and
feedback can help businesses innovate and develop products or services that better
meet market demands.

4.2 COMPONENTS OF CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) systems are designed to compile information on

customers across different channels or points of contact between the customer and the
company, which could include the company's website, telephone, live chat, direct mail,
marketing materials, and social media. CRM systems can also give customer-facing staff
detailed information on customers' personal information, purchase history, buying preferences,
and concerns. The components of CRM can be broadly categorized into three main areas:
Operational CRM, Analytical CRM, and Collaborative CRM, each serving distinct functions but
working together to enhance customer relationships and business operations.

1. Operational CRM

Operational CRM streamlines business processes for sales, marketing, and service automation.
The primary goal of operational CRM is to generate leads, convert them into contacts, capture
all required details, and provide service throughout the customer lifecycle.

• Sales Automation: Aims to standardize and automate the sales process to increase sales
efficiency and reduce the sales cycle.
• Marketing Automation: Focuses on automating marketing processes to manage
marketing campaigns with prospective customers across multiple channels more
efficiently.
• Service Automation: Enhances the quality of customer service, aiming to retain
customers and manage service requests effectively.

2. Analytical CRM

Analytical CRM involves the analysis of customer data and behaviors, with the goal of improving
decision-making and managing customer relationships more effectively. It helps in
understanding customer behavior, preferences, and trends to make informed business
decisions.

• Data Management: Collects, organizes, and manages customer data from various
touchpoints.
• Data Analysis: Utilizes data mining and other analytical tools to understand customer
behavior, segmentation, and value.
• Reporting and Dashboards: Provides reports and visual dashboards to monitor key
performance indicators (KPIs) and metrics.

3. Collaborative CRM

Also known as Strategic CRM, Collaborative CRM focuses on sharing customer information
among various business units like sales, marketing, technical support, and others. It ensures
that every interaction with the customer is informed and consistent across the board.

• Interaction Management: Manages and coordinates all communication channels in a

unified manner.
• Channel Management: Ensures effective communication across all available channels,
including direct, indirect, and internet channels.
• Partner Relationship Management: Focuses on building and maintaining relationships
with business partners, suppliers, and vendors to enhance the customer experience
Other areas of CRM are:

1. Customer Experience Management (CEM or CXM): Focuses on crafting strategies to

meet or exceed customer expectations.
2. Lead and Contact Management: Centralizes management of leads and contacts to track
interactions and convert leads into customers.
3. Workflow Automation: Automates repetitive tasks to improve business processes and
efficiency.
4. Document and Project Management: Helps in managing documents, projects, and
contracts related to customers.

CRM systems integrate these components to provide a comprehensive tool that helps
businesses manage relationships with customers, streamline processes, and improve
profitability and efficiency.

4.3 CHALLENGES OF CUSTOMER RELATIONSHIP MANAGEMENT

1. Data Management: Accumulating, storing, and managing vast amounts of customer

data securely and efficiently is a significant challenge. Ensuring data quality, accuracy,
and consistency across different systems can be daunting.
2. Integration with Existing Systems: Integrating CRM software with existing business
systems (like ERP, email, or data analytics platforms) can be complex and time-
consuming. Technical incompatibilities can create operational disruptions and data silos.
3. Costs: The initial and ongoing costs of implementing a CRM system (software licenses,
customizations, training, maintenance) can be significant, especially for small and
medium-sized enterprises (SMEs).
4. Culture: The existing culture of an organization can be hinderance to adoption of
effective CRM. Therefore, for any organization to succeed in adopting an effective
reinvent its culture to be receptive to the system
5. Structure: An enabling organizational structure is very important for adoption and
implementation of effective CRM.
6. Leadership: An enabling and supportive leadership is very important in implementation
of effective CRM. Therefore, the company’s leadership at all level, must be involved in
the implementation and sustained adoption of CRM.

Other challenges facing effective CRM in an organization are:

➢ Lack of employee commitment

➢ Lack of teamwork
➢ Lack of proper training and development
SECTION FIVE

HOW TO BECOME CUSTOMER SERVICE

CHAMPION-PRACTICAL APPROACH
5.0 MANAGING CUSTOMER COMPLAINTS
"A Complaint Is a Gift," Janelle Barlow and Claus Moller define a complaint as "a statement
about expectations that have not been met." So, feedback and complaints are actually really
important. They're an opportunity for us to improve ourselves, our products, our services, and
our processes – if we act on the feedback that we receive.

5.1 BEST PRACTICES FOR SOLVING CUSTOMER PROBLEMS

• Listen: It is of primary importance when dealing with an unsatisfied or complaining
customer to listen attentively to his/her complaint, gripe, frustration or grievance. Be
patient, attentive, and friendly.
• Express you are sorry: Expressing sorry to an aggrieved customer can make such a
customer to relax and be ready to listen and accept your corrections
• Do not argue and do not interrupt: This will only worsen the situation, especially if the
customer is angry. Let him speak before you try to discuss with him what has happened.
• Do not lose your self-control: If you stay relaxed, customers will calm down.
• Point out facts: Listen carefully – and write everything down. Do not make any
comments until the customer is finished talking.
• Admit the problem: From the very beginning you should believe that the customer may
be right. Always be open minded toward the customer’s opinion, make them feel they
deserve to be listened to.
• Involve the customer in problem solving: Suggest the customer alternative solutions, if
they exist. Customers appreciate the opportunity to choose the ways of problem
solving.
• Follow-up: Make sure that the promised measures are taken. If you do not fulfill what
was promised and ignore the customer’s complaint, the problem will grow. Next time it
will be more difficult to solve.
• Give the customer a “way back”: Sometimes customers are wrong. Prove it with facts.

5.2 OBTAINING FEEDBACK FROM CUSTOMERS

5.2.1 BENEFITS OF USING A FEEDBACK PROCESS
There are several benefits of implementing a feedback process:

• An effective feedback process gives you the data that you need to create real, lasting
improvement. Team morale, product quality, and an organization's reputation may all
improve as a result.
• A good process helps organizations act on the feedback that they receive. This, in turn,
can create a strong bond between the organization, and its employees and customers.
5.2.2 TIPS FOR MANAGING FEEDBACK FROM CUSTOMERS
• Make it easy – It should be easy for your customers or your team to give feedback. For
example: For internal feedback, encourage people to use suggestion boxes, and make
sure everyone knows where the boxes are.
• Set up a feedback hotline or specific email address that allows people to offer
comments quickly.
• Give your managers and team the power to do whatever it takes to resolve a problem.
• Offer incentives for people to provide feedback.
• Use careful language – Watch your wording when you speak with, or write to, a
customer or employee.
• Empathize – Some people may be angry about a problem. Empathize with them with
phrases like "I know you're angry. I would be too and try to see the situation from their
point of view.

5.3 DEALING WITH A DIFFICULT CUSTOMER

The Talkative Customer
• Ask closed questions
• Limit the time available for them to interrupt (don’t have long pauses)
• Provide minimal response
• Smile and be pleasant, but don’t encourage them
• Wind up – thank them for coming, walk them to the door but don’t be rude or
dismissive

The Angry Customer

• Listen carefully without interrupting so you understand the problem
• Stay calm and remain polite
• Don’t escalate the problem
• Don’t take it personally, be defensive or blame others
• Propose an action plan and follow it
• Seek support if you are scared, if you can’t agree on a solution or if the customer asks to
see “whoever’s in charge”
The Indecisive Customer
• Find out what they really want
• Ask them for the options
• Reflect back to them what they’ve said
• Assume control gently and point out the best course of action from what they’ve told
you they need
• Be logical
• Confirm a plan of action with them
The Suspicious Customer
• Establish your credibility
• Ensure you know your product or service
• They will try and catch you out so don’t guess or tell them something you’re not sure of
• Be careful what you say
• Be polite
• Don’t take it personally, they don’t trust anyone!

The “Know it all” Customer

• Acknowledge what they say
• Compliment them on their research
• Be generous with praise
• Don’t put them in their place no matter how tempting
• Don’t try to be smart – you can’t win!
• Ask them questions and use them to improve your knowledge

5.4 HOW TO BE MORE CUSTOMER ORIENTED

Acquire Right Knowledge
• About your organization
• About your job
• About your customer
Develop Right Skills
• Effective Communication Skills
• Listening Skills
• Problem Solving skills
• Decision Making Skills
• Negotiation/Conflict Management Skills
• Leadership Skills
Form the Right Attitudes