Organizations have realized that retaining customers is more profitable than crating a new customer. It is estimated that a customer for coke for a lifetime will bring an estimated cash flow of Rs 50,000. Therefore, if we loose a customer we not only loose him for present but also future. We have not calculated the cost of satisfied customers references. Though customer relationship is being emphasized by Theodore Levitt in his article on “Marketing Myopia”, organizations are yet to understand and implement various customer related initiatives. However, technology as an enabler with very low cost has come to the rescue of organizations to meet ever-changing need of customers.
CRM applications are also useful in gathering information from various business departments and merging them into one file, so that the company representative who takes a customer's call can answer most questions that the customer may have. This avoids the problem of having to transfer customers to other departments. Of course, CRM is a "two-way street," in that it enables companies to use information on a customer's previous purchases to focus their marketing on items of special interest to a particular customer. For instance, a bookseller may send information on new travel books to a travel enthusiast.
Why are the reasons for customer complaints?
Most customers complain because they purchased a product or service with certain expectations, and, for any number of reasons, those expectations were not met. Some of the research done by organizations found the following to be among the major causes of consumer complaints.
Product Service Causes:
• Poor product quality
• Maintenance difficulties
• Inadequate or poor repair work
• Delays in delivery of goods or services
• Failure to fulfill product or service warranties
• Incompetent or discourteous employees