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Friday, October 19, 2012

Customer Orientation: The Ultimate Objective

What Is No 1 Job of an Organization and its Executives?
  • Find customers (Identify where they are?)
  • Get customers (Make them your company’s customers by giving them highest value; always higher than the one provided by your competitors).
  • Retain customers: Satisfied customers means retained customers.
  • Therefore, continued orders and possibly more orders.
  • So, more value of orders.
  • Get more customers.
  • Get from each customer more orders.
  • With each order make sizable profits (By “overall cost” reduction: are you aware of extent of impact of overall cost reduction on the extent of increase in profits?)
  • Price remaining the same, more profits.
  • Price can now be a lever; can be reduced.
  • Possibly resulting in more sales volumes.
  • Still more profits.
Every person in every organization must be aware that all of his actions must ultimately be directed towards getting and retaining the customers. If one's actions do not get connected to this ultimate objective, his actions are non-value adding and practically useless though he may be the busiest person in the organization.

Wednesday, February 11, 2009

Customer Relationship Management (CRM)

For everything you wanted to know on building leadership and management, refer Shyam Bhatawdekar’s website:

(Refer our High Quality Management Encyclopedia Management Universe at:

Most Important Jobs of a Business Organization
  • Find the customers and get orders for your products and services.
  • Retain them.
  • Obtain more and more profit making orders.
  • Run the entire organization effectively and efficiently thereby reducing the overall costs.
  • Make (reasonable) profits.

How Do You Achieve That?

  • By providing the customer value higher than the one provided by your competitors.
  • And then by continuously improving the customer value so that it remains better than the one provided by your competitors.
  • Improving customer value is a journey, not the destination.

Value for Money (VFM) to Customer

  • Value to customer (VFM) = (Total quality "Q" X Total service inclusive of pre, during and post customer service "S" X Relationship with customers "R") divided by (Price "P" X Lead times "L")
  • Price (P) = Overall costs (C) + profit
  • Objective of an organization is to maximize the VFM as compared to the overall incurred costs. Therefore, to meet this objective, the organizations should continuously improve "Q", "S" and "R" and continuously reduce "P", "C" and "L".
  • Customer relationship management (CRM) is designed to achieve this continuous improvement by way of focusing on the factor "R" in the above mentioned equation.
  • Therefore, developing and maintaining great relationships with the existing and prospective customers can be the differentiating factor in severe global competition in order to provide high degrees of customer delight.

Customer Relation Management (CRM): Holistic Approach

CRM's ultimate aim should be on improving the "R" (relationship) factor in the value for money (VFM) to customer equation mentioned in the earlier paragraph. In trying to achieve, it must be always kept in mind that:

  • CRM is a holistic management approach.
  • CRM is not just about marketing or sales or customer service functions, it has to do everything that enhances organization's relationship with it's existing and prospective customers.
  • CRM is not about the computer based CRM software packages though CRM does take significant support from these packages.
  • CRM is integration of management strategies, policies and processes that bring the organization and it's customers closer to each other in several ways and places the organization as a unified whole to it's customers.
  • CRM can improve the bondage between the organization and it's customers in such a manner that the loyalty of the customer towards the organization increases and the organization becomes friend, philosopher and guide to the customers.
  • CRM depends on the information about its customers, their requirements, their expectations, their expenditure portfolios, organization-customer interactions and many other areas of customer information which are collected, updated and accessed continually using computer data bases by organization's different departments.

CRM Umbrella

CRM encompasses:

  • Marketing, sales and customer service related functions and operations.
  • Functions and operations that have an impact on marketing, sales and customer service i.e. product development, product quality, supply chain management, manufacturing, advertising, finance, billing, accounting etc.
  • CRM data base building, maintenance, updating, analysis and interpretations to work out strategies, plans and execution related to new product development, marketing, sales and service campaigns, sales force automation (SFA), evaluation of marketing/sales/service effectiveness and efficiency by way of processing the indicators like profitability, sales volumes, revenue earned, market share, profitability, customer profiles etc.

Uses and Benefits of CRM

  • Customer data and information
  • Feedback information for product improvement/new product development
  • Marketing and sales automation (scheduling sales calls, mailers, keeping track of responses, generating reports etc)
  • Marketing, sales and service strategies and campaigns
  • Customer behavior analysis
  • Customer and product profitability analysis
  • Marketing, sales and service performance evaluation
  • Coming closer to the customers
  • One common single view of the customers to all the departments of the organization

CRM Software Packages

Customer relationship management should be preferably supported by an appropriate computerized CRM software package. There are many CRM packages available in the market. Organization should carry out an in-depth study of it's CRM requirements and decide on the package.

For More Guidance, Assistance, Training and Consultation


Also refer:, and

Other Topics of Interest

All Management Topics (General Management, Marketing and Sales, Service, Operations/Manufacturing, Quality, Maintenance, Human Resources, Finance and Accounts, Information Technology, Life Management)

The topics are listed in alphabetic order:

(Home Pages for All the Management Topics) and
(Building Leadership and Management)
(Alphabetic List of All Management Topics)
(Home Page for Writings of Shyam Bhatawdekar)
(5S Housekeeping)
(Activity Based Costing- ABC)
(Anger Management)
(Assessment Centers)
(A to Z of Management Systems)
(A to Z of Quality Techniques)
(Balanced Scorecard)
(Basic Statistics)
(Behavioral Safety)
(Body Language or Non-verbal Communication)
(Books- Best Management Books)
(Business Ethics and Ethics in Management) (Business Plan)
(Business Process Reengineering- BPR)
(Career Planning within Organizations)
(Case Method)
(Case Studies in Management)
(CEO Roles, Qualities and Competencies)
(Change Management)
(Competencies- Life Management)
(Competency Matrix)
(Conflict Management)
(Corporate Governance)
(Cost Management)
(Cost of Quality- COQ)
(Counseling at Workplace)
(Creativity and Innovation)
(Critical Thinking skills)
(Cross Cultural Etiquette and Manners)
(Customer Orientation)
(Customer Relationship management- CRM)
(Daily Management)
(Decision Making)
(Design for Manufacture)
(Dining Etiquette and Table Manners)
(Discipline at Work)
(Dream Exotic)
(Effectiveness and Efficiency)
(Effectiveness Management: HSoftware)
(Efficiency Techniques: Work study: Motion and Time Study)
(Efficient Work Methods or Practices)
(Email Etiquette)
(Emotional Intelligence)
(Enterprise Resource Planning- ERP)
(Entrepreneurship and Entrepreneur)
(Executive Etiquette and Manners)
(Exit Interview)
(Financial Ratios and Financial Ratio Analysis)
(Financial Services)
(Functions of Management)
(Gemba Kaizen)
(Genuine Professional)
(Global Mindset)
(Goal/Target Setting)
(Group Discussion)
(Group Dynamics)
(How to Be a Good Boss)
(How to Get Promoted)
(How to save Money)
(HR Dynamics)
(HR Strategies and Functions)
(Human Capital Architecture)
(Human Relations)
(Human Resource Planning)
(Human Software- HSoftware)
(Internal Motivation or Self Motivation)
(Interpersonal Relations)
(Interview Skills)
(Interview Preparation for Job Seekers)
(Interview Questions)
(Just in Time Management- JIT)
(Knowledge Management)
(Lead Time Management)
(Lean Enterprise)
(Learning Organization)
(Life Management: Competencies)
(Life Management: Effectiveness Management: HSoftware)
(Life Management: I Am Liberated)
(Life Positions and OKness)
(Life Skills)
(Management Anecdotes)
(Management Book- Best Books)
(Management Information System- MIS)
(Managing/conducting Meetings)
(Management Notes- Free and Authentic)
(Marginal Utility)
(Marketing Management Overview)
(Marketing Management Tasks)
(Marketing Orientation)
(Market Research)
(Market Segmentation)
(Musings of Shyam Bhatawdekar on every topic on the earth)
(Negotiation Skills)
(Negotiation Tactics)
(Objection Handling)
(Organization Development- OD)
(Organizational Culture)
(Out of Box Ideas)
(Ownership on Job)
(Paradigm and Paradigm Shift)
(Performance Management and Appraisal)
(Positive Strokes)
(Presentation Skills)
(Problem Solving)
(Profit Improvement)
(Project Management)
(Public Speaking)
(Quality Circles History)
(Quality Circles)
(Quality Function Deployment- QFD and House of Quality)
(Quality Gurus)
(Recession Management)
(Recession and Opportunities)
(Recruitment and Selection)
(Research Methodology)
(Safety and Health Management)
(Sales/Selling Process)
(Sales Promotion)
(Self Motivation or Internal Motivation)
(Self Development)
(Shyam Bhatawdekar’s Articles on Management)
(Six Sigma)
(Six Thinking Hats)
(Soft Skills)
(Spiritual Quotient/Intelligence)
(Statistics- Basic)
(Strategic Management)
(Stress Management)
(Stress Management)
(Success in Life or Success)
(Success in Life or Success)
(Supply Chain Management)
(Supply and Demand)
(Talent Management)
(Team Building)
(Telephone Etiquette)
(Three Sixty Degrees Appraisal System)
(Time Management)
(Total Productive Maintenance- TPM)
(Total Quality Management- TQM)
(Training and Development)
(Trainers’ Qualities)
(Transaction Analysis- TA)
(TRIZ- Inventive Problem Solving)
(Value Engineering/Analysis)
(Winners and Losers)
(Work Study: Method Study and Work Measurement)
(Work Methods or Practices: Efficient)
(World Class Manufacturing)
(Writings of Shyam Bhatawdekar on Management)
(Written Communication)
(Zero Based Budgeting)

Counseling: General and Psychological
(Anger Management)
(Children’s Behavior Problems)
(Cholesterol Control)
(Counseling: Psychological)
(Counseling: Psychological)
(Cross Cultural Etiquette)
(Executive Etiquette and Manners)
(Family Counseling)
(Health: Homeopathy)
(LifeManagement: Competencies)
(Life Management: Effectiveness Management: HSoftware)
(Life management: I Am Liberated)
(Marriage Counseling)
(Ownership on Job)
(Parental Responsibilities)
(Qualities of Spouse)
(Quit Smoking)
(Self Development)
(Stress Management)
(Stress Management)
(Swine Flu and Its Prevention)
(Telephone Etiquette)
(Winners and Losers)

About All the Products
(Home Page for All Products)
(Greeting Cards)
(Mobile Phones)

Home Tips
(Home Page for All Home Tips)
(Entertainment: Movies)
(Oscar Award Movies)
(Entertainment: Recommended Hindi Movies)
(Entertainment- Hindi Movies of Your Choice)
(Plagiarized, Copied or Inspired Hindi Movies)
(Health: Homeopathy)
(Housekeeping at Home)
(How to Save Money) or
(Jewelry Design)
(Recipes: Easy to Cook)
(Recipes: Exotic)
(Stories for Children)
(Travel and Sightseeing- India)
(Travel and Sightseeing- World)
(World Heritage Sites)

General Knowledge and Out of Box Ideas
(General Knowledge- GK)
(General Knowledge- Top 5 of Everything)
(General Knowledge- Top 10 of Everything)
(Out of Box Ideas)
(Shyam Bhatawdekar’s Knols)
(Running Commentary on the Run)