Learned, The Theory of Human Relationship Management!
It is important to separate the theory of human relations management from the broad concept of human resource management. The second word is different in every context in which it is using because it is difficult to explain. On the other hand, the principle of human relations is particularly focusing on the quality of relations between managers and subordinates in an organization. Also learn, The Objectives of Human Resource Management, The Theory of Human Relationship Management!
Change the style of Management!
Principles of Human Relations Management Today’s business organizations include important evidence of changing the style of management. Employees in the 21st century who are not managers occupy the important role. Also, they have more rights than line workers and non-managers of the past and because the number of managerial layers in one organization has decreased in this new century and also because the machines and computers used workers to perform. The performance part of consultation managers Without making decisions, to perform. Risk Management Definition!
Management Theory!
This principle is also a principle of management in itself. It is an organization, just paying attention to human dimensions of employees, rather than. Their benefits as human capital, or property. Managers value their relationships to their direct reports and place a high value on how they feel about their membership in organizational culture. To make a commitment to staff achievement, and to get a high level of worker morale for managers, the concern is concerned.
Investment!
Investment in human relations management staff is involving. Workers do not enjoy a high level of decision-making, empowerment and indulging in strong worker morale. They also get to improve as a professional and increase their value for the organization. Also, in the future – an employee in the form of managerial and technical expert roles – enough financial investment in employee training and professional development, the preparation of the staff makes it assume big roles. What are the Features of Sole Proprietorship?
Stakeholders!
Every employee is seen as an important stakeholder in the firm. The managers have to buy into the success of the firm. Because it focuses on getting the employees and employees as the entire organization. Every change that will affect employees will study for its effect on human relations. Therefore, managers will work with the staff, their support is getting so that in implementing the changes. Also, in order for the employees to become a part of every change in the organization. It is necessary to experience success.
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Importance of Customer Relationship Management (CRM); This Is the strongest and the most efficient approach to maintaining and creating relationships with customers. Customer relationship management is not only pure business but also ideate strong personal bonding with people. The development of this type of bonding drives the business to new levels of success. Customer Relationship Management in the Banking Sector.
Here is the article explain, what is the Importance of Customer Relationship Management (CRM)?
Once this personal and emotional linkage is built, it is very easy for any organization to identify the actual needs of the customer and help them to serve them in a better way. It is a belief that more the sophisticated strategies involved in implementing customer relationship management, the more strong and fruitful the business. Most of the organizations have dedicated world-class tools for maintaining CRM systems in their workplace. Some of the efficient tools used in most renowned organizations are BatchBook, Salesforce, Buzzstream, Sugar CRM, etc.
The Importance of CRM (Customer Relationship Management) Within a Business:
In a world where competition is becoming ever fiercer, importance, businesses need to implement customer relationship management or CRM, strategies to stay ahead of their rivals. Also, CRM is about understanding who your customers and potential customers are, and nurturing the relationships you have with them. It is also about understanding the needs and behaviors of these people, whilst reacting to them, and adapting as these change.
There are numerous compelling reasons to employ CRM strategies. Here are just a few for starters.
Targeted customer relationship management:
CRM is about understanding who your customers are in every business. When you know what makes them tick, you can better target your sales and digital marketing services, or even the products or strategies that you sell to match their needs. By offering a targeted approach, you will not be wasting time in failing to meet the needs of your customers.
You can also develop a personalized approach to your marketing, and focus on those that give you the best return. In using CRM to target specific groups of customers or even potential customers, you can improve your offering. This can, ultimately, help to boost sales and growth, whilst driving customer loyalty.
Communication channels.
It is a fact that as technology has evolved, the number of communication channels has also grown exponentially. This means that businesses now have multiple different ways in which to communicate with their customers, including both offline and online methods.
Having more communication channels is a good thing for a business, but it also makes the ability to interact with customers, and serve their needs, something of a challenge. The need for effective customer relationship management (CRM) becomes even more pertinent as the number of communication channels increases, and also their importance.
Improved experiences.
CRM is about creating relationships with your customers, therefore, in the end, they enjoy positive experiences while talking to your brand. As a business grows, keeping track of customer interactions can be difficult, and a bad conversation can likely go through the net. Also, CEM (Customer experience management) is about ensuring that you know about your brand experience customers and respond accordingly.
By applying the appropriate system, such as digital marketing services, you can ensure that positive and negative experiences are effectively controlled. As part of your CRM strategy, nurturing experiences can improve customer loyalty and enhance your brand name and reputation.
Focusing your business.
How do you know if you are offering your customers exactly what they want? Do you actually know who your customers are? Even if you have the answers to these questions, this may change over time. Having CRM systems in place means that you can answer these questions. Also, It provides you with the information you need to understand what your customers want or need, and who they are.
You can use this intelligence to steer your brand in a particular direction. Keeping up to date with customer demands is essential to ensure you stay ahead of your competitors. It also offers you the best chance for business growth, and for making improvements.
New customers.
CRM is not just about nurturing relationships with those people who already purchase from your brand. It is also about gaining new customers and converting potential customers into new and returning customers. If you want your business to flourish, you cannot simply rely upon your existing customer base to achieve this.
You need to implement marketing strategies to win new customers over, especially if you operate in a competitive market. Also, CRM tools let you identify potential customers who may be interested in your brand, and focus your marketing efforts on engaging with these prospects. These could be people who have made an inquiry in the past, or who fit the demographic profile of your target audience.
Cost-effective.
Putting systems in place to implement CRM strategies may sound like a time consuming and costly affair, but it can offer a very strong return on investment. By building relationships with your customers, you get to understand their needs and desires, so you can become more targeted in your approach.
You can work out which of your customers are profitable for your business, and which are not. Also, CRM ensures that you don’t waste time and money implementing the wrong strategy for the wrong customers. By being targeted and focused, you maximize your sales and growth potential.
Reputation management.
To help customers solve their needs, solve their problems, and to ensure that. They have a great customer experience, you increase contentment. It enhances loyalty and enhances your reputation. Also, Creating relationships with customers and potential customers is certainly not that. If a business wants to achieve success, then it can ignore it.
Looking at some of the broad approaches given below, we can easily determine why CRM systems are always important for an organization.
A CRM system consists of a historical view and analysis of all the acquired or acquire customers. Also, This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business.
Each customer has every bit of description in the CRM, so tracking a customer accordingly is very easy and can be used to determine. Which client can be profitable and who does not.
In the CRM system, customers operate according to the type of group according to various types or according to the physical location. Allocate to different client managers, often called account managers. Also, It helps to concentrate and focus on every customer.
A CRM system is not only used to deal with existing customers but is also useful in getting new customers. The process starts with identifying the customer and maintaining all related details in the CRM system. Whatever is called ‘business prospects’, sales and regional representatives then try to get business from these customers, who follow them with Sophisticate-affiliates and convert them into a winning deal. All this is done very easily and efficiently through an integrated CRM system.
Other things:
The strongest aspect of Customer Relationship Management is that it is very cost-effective. The advantage of decently implement a CRM system is that there is very little need for paper and manual work. Which requires lesser staff to manage and lesser resources to deal with. Also, the technologies used in implementing a CRM system are very cheap and smooth as compared to the traditional way of business.
All the details in the CRM system are kept centralize which is available anytime at fingertips. This reduces the processing time and increases productivity.
Efficiently dealing with all the customers and providing them with what they actually need increases customer satisfaction. This increases the chance of getting more business which ultimately enhances turnover and profit.
If the customer is satisfied they will always be loyal to you. Will remain in business forever resulting in increasing customer base and ultimately enhancing the net growth of the business.
In today’s commercial world, the practice of dealing with existing customers. Looping more customers is dominant and it is only a dilemma. Also, Establishing a CRM system can certainly improve the situation. Can help in challenging new methods of marketing and business efficiently. Therefore, in the era of trade, every organization should recommend a complete CRM system to deal with all business needs.
What is the Importance of Customer Relationship Management (CRM)? Image from Online!
What is Customer Relationship Management (CRM)? It is an approach to managing a company’s interaction with current and potential customers. It uses data analysis about customers’ history with a company and to improve business relationships with customers. Specifically focusing on customer retention and ultimately driving sales growth. Positive Relationships with Individual and Organization Outside. So, what is the question going to learn; What is CRM? with Video Clip.
Here are explain; What is Customer Relationship Management (CRM)? with a video clip for a better Understand.
One important aspect of the CRM approach is the systems of CRM that compile data from a range of different communication channels. Including a company’s website, telephone, email, live chat, marketing materials, and more recently, social media. Through the CRM approach and the systems used to facilitate it, businesses learn more about their target audiences. How to best cater to their needs. However, adopting the CRM approach may also occasionally lead to favoritism within an audience of consumers. Resulting in dissatisfaction among customers and defeating the purpose of CRM.
Customer relationship management (CRM) is a term that refers to practices, strategies, and technologies. That companies use to manage and analyze customer interactions and data throughout the customer life-cycle. To improve business relationships with customers, assisting in customer retention, and driving sales growth. Also, 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.
Objectives of CRM
Customer Relationship Management (CRM) as the name suggests the primary focal point is placed on the customer. The key objective is to increase customer value over time by increasing customer loyalty. If a company develops better customer relationships, it also improves business processes as well as its profits. In general, CRM is a more efficient automated method use to connect and improve. All areas of the business to focus on creating strong customer relationships. Also, All forces are coupled together to save, improve, and acquire greater business to customer relationships. The most common areas of business that are positively affected include marketing, sales, and customer service strategies.
Customer Relationship Management (CRM) helps create time efficiency and savings on both sides of the business spectrum. Through correct implementation and use of CRM solutions, companies gain a better understanding of their strongest and weakest areas and how they can improve upon these. Therefore, customers gain better products and services from their businesses of choice. To achieve better insight into CRM, it is essential to consider all of its components.
Strategy and Solutions of CRM
Customer relationship management (CRM) is a business strategy that spans your entire organization from the front office to the back-office. It is a commitment you make to put customers at the heart of your enterprise. Also, The right CRM strategy and solutions can help you securely, reliably, and consistently:
Delight your customers every time they interact with your business by empowering them with any time, anywhere, and any channel access to accurate information and more personalized service.
Reach more customers more effectively, increase customer retention and boost customer loyalty by leveraging opportunities to up-sell and cross-sell and driving repeat business at a lower cost.
Drive improvements in business performance by providing your customers with the ability to access more information through self-service and assisted-service capabilities when it is convenient for them.
Enable virtualization in your enterprise as more of your people and resources extend beyond your offices and around the world.
Balance sophisticated functionality with rapid implementation and effective support for a faster return on your CRM investment.
Present Day of CRM:
Today’s customers face a growing range of choices in the products and services they can buy. Also, They base their choices on their perception of quality, value, and service. Each consumer has specific behavior. But buying habits are sometimes difficult to understand. Therefore companies always want to gain some insight into consumer behavior and habits to better control this behavior. Having an impact on consumer behavior means being able to change consumer’s perception of the product or service, to establish a relation between the company and its clients.
Another concept that is closely related to CRM is Customer Relationship Marketing. Which is a practice that encompasses all marketing activities direct toward establishing, developing, and maintaining successful customer relationships? Also, The focus of relationship marketing is on developing long-term relationships and improving corporate performance through customer loyalty and customer retention.
What is ‘Customer Relationship Management – CRM’:
Customer relationship management (CRM) refers to the principles, practices, and guidelines that an organization follows when interacting with its customers. From the organization’s point of view, this entire relationship encompasses direct interactions with customers, such as sales and service-related processes, and forecasting and analysis of customer trends and behaviors. Ultimately, CRM serves to enhance the customer’s overall experience.
With the growth of the Internet and related technologies. Customers are concerned about the privacy and safety of their personal information. Therefore, businesses need to ensure the storage and analysis of their customer data have the highest levels of protection against cybercriminals, identity theft, and other breaches of security.
BREAKING DOWN ‘Customer Relationship Management – CRM’:
Elements of CRM range from a company’s website and emails to mass mailings and telephone calls. Also, Social media represents one-way companies adapt to trends that benefit their bottom line. The entire point of CRM is to build positive experiences with customers to keep them coming back so a company creates a growing base of returning customers.
Software:
Special CRM software aggregates customer information in one place to give businesses easy access to data. Such as contact data, purchase history, and any previous contact with customer service representatives. This data helps employees interact with clients, anticipate customer needs. Recognize customer updates and track performance goals when it comes to sales. Also, CRM software’s main purpose is to make interactions more efficient and productive. Automated procedures within a CRM module include sending a sales team marketing materials based on a customer’s selection of a product or service. Programs also assess a customer’s needs to reduce the time it takes to fulfill a request.
Cloud Solutions:
Cloud-based systems provide real-time data to sales agents at the office and in the field as long as a computer, smartphone, laptop or tablet connects to the Internet. The convenience of this type of system has a trade-off. If the company goes out of business or faces acquisition, access to customer information may become compromised. A business might have compatibility issues when and if it migrates to a different vendor for this kind of software. Typically, cloud-based CRM programs cost more than in-house programs. Every Leader has to need Social Media Skills with Qualities.
Management:
All of the computer software in the world to help with CRM means nothing without proper management and decision-making from humans. Plus, the best programs organize data in a way that humans can interpret readily and use to their advantage. For successful CRM, companies must learn to discern useful information and superfluous data and weed out any duplicate and incomplete records that may give employees inaccurate information about customers.
What is Customer Relationship Management? with Video Clip
Learn about the difference employee industrial relations. Understand the significance of interpersonal dynamics and employer-worker relationships in organizations. Define Employment relations, distinguish between the terms “industrial relations” and “employee relations” and identify the different disciplinary inputs which comprise the study of employment relations. The term employee relations lays stress upon the processes of interpersonal relationships among individuals as well as the behavior of individuals as members of groups. The term industrial relations use widely in industrial organizations and refers to the relations between the employers and workers in an organization, at any specifies time. Also, learn and Understand Entrepreneurship Theories and Empirical Research.
Learn, What is the Difference Between Employee and Industrial Relations?
Thus, while the problem of employee relations are personal in character and are relate to the behavior of individuals where moral and social element predominate, the term industrial relation is comprehensive covering human relations and the relations between the employers and workers in an organization as well as matters regulated by law or by specific collective agreement arrived at between trade unions and the management. Roles of HR Management in Organizations on Difficult Times.
However, the concept of industrial relations has undergone a considerable change since the objective of evolving sound and healthy industrial relations today is not only to find out ways and means to solve conflicts or resolve difference but also to secure unreserved cooperation and goodwill to divert their interest and energies toward the constructive channel.
The problems of industrial relations are, therefore, essentially problems that may solve effectively only by developing in conflicting social groups of an industrial undertaking, a sense of confidence, dependence, and respect and at the same time encouraging them to come closer to each other for removing misunderstanding if any, in a peaceful atmosphere and fostering industrial pursuits for mutual benefits.
Employment relations in general:
Employment or human relations cover all types of interactions among employees such as cooperative efforts, interpersonal and group relationships. The purpose of employment relations is to deal with the people, the business employees, and the issues arising from their employment. Acquiring, developing, maintaining, and motivating staff in all aspects that are cover by the employment relations area. Employment relations are necessary as the employee is the most important part of a business and turn it either into a successful unit or drive it to catastrophe.
‘Industrial relations‘ is generally understood to refer to the relationship between employers and employees collectively. The term is no longer widely used by employers but summons up a set of employment relationships that no longer widely exist, except in specific sectors and, even there, in modified form. What is an e-HR (Electronic Human Resource)?
The term ‘employee relations‘ conceived as a replacement for the term ‘industrial relations‘ but its precise meaning in today’s workplaces needs clarification. Business managers have come to recognize that their employees are the most important part of a business and through effective management, a business can gain a competitive advantage.
The skills, knowledge, and creativeness of employees is the main potential that a business has over its competitors, and thus the realization that the employee has the most influence over important aspects such as its profitability, competitiveness, and adaptability has led to the idea that managing these human resources to develop their maximum capabilities.
Human resource management or employee relations is the process of finding the people the business needs, developing their skills, knowledge, talents, careers. Motivating and maintaining their commitment to the business.
History;
The turn from industrial relations to employee relations can spot on several different dimensions. From a peak of some 12 million-plus, union membership has fallen to around 7 million today. Between 1980 and 2000, the coverage of collective agreements contracted from over three-quarters to under a third of the employed workforce.
The Workplace Employment Relations Survey (WERS) 1998 showed that union officials spent most of their time not on negotiating pay and conditions but in supporting grievances on behalf of individual members. Even where collective bargaining continues, its impact on the exercise of management discretion was greatly diminishing.
Industrial relations:
Became inevitably associated with trade unions, collective bargaining, and industrial action;
Had too strong a tendency to view the world of work as synonymous with the heavy extractive and manufacturing sectors of employment, sectors which were dominated by male manual workers working full-time and which are in decline in nearly all developed economies.
Using the term employee relations enables the adoption of a broader concept that:
Encompasses the now dominant service sector which, in many developed countries, now employs more than 70 percent of the workforce, and the changes in the composition of the labor force such as more women working and more part-time, temporary and fixed-term contracts;
Include non-union as well as union scenarios and relationships.
The meaning of employee relations with employers:
Some broad conclusions emerging from research are:
Employee relations can see primarily as a skill-set. Or a philosophy, rather than as a management function or well-defined area of activity.
Despite well-publicized instances of industrial action, the emphasis on employee relations continues to shift from ‘collective’ institutions. Such as trade unions and collective bargaining, to the relationship with individual employees.
The ideas of ’employee voice’ and the ‘psychological contract’ have been accepted by employers. Reflected in their employee relations policies and aspirations.
Employee relations skills and competencies are still seen by employers as critical to achieving performance. Benefits through a focus on employee involvement, commitment, and engagement.
Employee relations sees as strategic in terms of managing business risk. Both the downside risk of non-compliance with an expanding body of employment law. The upside risk of failing to deliver maximum business performance.
Nearly two-thirds of unionized employers regard the relationship between management and unions as either positive or very positive.
Public sector managers are more likely than those in the private sector to see union influence as strong. With, almost three-quarters reporting union influence as significant or very significant.
Disciplinary inputs of employment relations:
Many national labor laws contain provisions on the employment relationship. Despite certain similarities, however, not all national labor laws provide exhaustive or equal coverage of the subject. Some provisions deal with the regulation of the employment contract as a specific contract. Its definition, the parties, and their respective obligations. Other provisions are intending to facilitate
recognition of the existence of an employment relationship and prescribe administrative and judicial mechanisms for monitoring compliance. In general terms, the employment relationship creates a legal link between a person who performs work. The person for whose benefit the work is performed in return for remuneration. Under certain conditions established by national law and practice.
The determination of the existence of an employment relationship should guide by the facts of what was agree upon. Perform by the parties, and not on how either or both of the parties describe the relationship. This knows in law as the principle of the primacy of fact. The legislation adopts in some countries since the end of the twentieth century contains provisions refocusing.
Extra knowledge;
The employment relationship to extend the scope of the law and hence its protection to new categories of workers; to combat disguised or fraudulent employment relationships and improve compliance with the law, and to ease the burden of proof on the worker in particular. When seeking to prove the existence of an employment relationship in a given case.
To conclude, employment relations involve the body of work concerned with maintaining employer-employee relationships. That contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals which arise out of or affect work situations.” Why is the Need Entrepreneurship for Small Business?
Parallel to this regulatory response to the growing concern at the lack of protection for workers. Who are in fact in an employment relationship which might be ambiguous or disguise? There has also been a continuing tendency in case law to apply. The traditional approach to the employment relationship to new and complex situations.
How to Develop Positive Relationships with Individual and Organization Outside of Your Business
It’s vital for a business to develop as many external contacts as possible. This simple approach can lead to valuable/positive relationships and opportunities that would not otherwise have occurred. How Do You Know Your Company Wants Help From The Outside? Below are some of the best ways you can develop relationships with individuals and organizations outside of your business. Do You Really Want to your Own a Business?
What is Meaning about Positive Relationships? Positive, productive relationships demand the best of us. For a friendship or marriage to allow both people to flourish, each person is an active participant in helping create the other one’s positive future.
“A direct relationship between two variables in which as one increases, the other can be expected to increase, Also called direct relationship. Compare negative relationship.”
“Positive relationships with others, Will be happier and more fulfilled and feel more supported, supportive, and connected.”
Define of Positive Relationships; “Positive correlation is a relationship between two variables in which both variables move in tandem. A positive correlation exists when one variable decreases as the other variable decreases, or one variable increases while the other increases. In statistics, a perfect positive correlation is represented by 1, while 0 indicates no correlation and negative 1 indicates a perfect negative correlation.”
Develop Your Communication Skills and Communication Channels
Before you reach out to certain individuals and organizations, it’s important to prepare properly and have the skills and knowledge required for communicating in an effective way.
For instance, if you want to interact with local government representatives and agencies in a more productive way, you may need to hire a consultant or someone who has completed an online masters in public administration and who has a great working relationship with the public sector.
“Communication is the act of conveying intended meanings from one entity or group to another through the use of mutually understood signs and semiotic rules.”
In other situations, it may be a good idea for you or someone in your organization to enroll in an online master in public administration degree course or similar program provided by universities like Norwich University, so that you have a permanent person in your company who can deal with government entities that can help your business.
Attend Networking Events
Most people prefer to deal with other individuals and businesses they are familiar with. This means you and your business need to get public exposure.
Attending networking events like Chamber of Commerce meetings, conferences, and industry seminars is an effective way to do this. The more times you are seen at these events, the more people will become familiar with you and start to trust you.
Give Your Own Presentations
Initially, when you attend networking events you may be there to listen to other people. However, eventually you could participate more in these events by giving your own presentations in the area you have expertise in. This once again could lead to a lot of new opportunities, including business offers and referrals from those who listen to your presentations. Why You Should Be Balancing Your Books on Every Single Month.
Join Online Communities
Today’s business owners live busy lives and it’s not always possible to attend networking events. In other cases, the people you want to interact with may not attend these types of events or they live a long distance away. This is where the Internet can come to the rescue because a wide range of online business communities exist.
These communities are usually open to novice business owners, established business owners and people who have a keen interest in the same industry or niche. Interacting with other community members is extremely easy and most members of these websites are more approachable online.
Build Your Own Online Social Profile
It’s important to maintain professional online social media profiles. A huge number of people prefer to use the Internet to find out about a business or the people in a business. Become an Instagram Millionaire but How?
The more informative your social media profiles are, the more impressed others will be, and the more likely it is that they will want to find out more about you and your business.
Networking and building positive relationships with individuals and businesses outside, your own organization is an important step if you want your business to succeed and grow. This is not as difficult as it may sound, especially if you follow the steps above.
CRM (Customer Relationship Management) essay How to help in the Banking Sector? Competition and globalization of banking services are forcing banks to productive and profitable. To retain High Net Worth individuals, banks should focus strongly on relationship management with customers. Innovative Customer Relationship Management (CRM) strategies and cutting-edge software can help, to a great extent, in achieving the desired results. To provide customized services, banks are opening Personalized Boutiques that provide all the required financial needs of a customer. Role of Price Perception in Consumer Buying Process. So, what is the problem we going to discuss; Customer Relationship Management in the Banking Sector.
Customer Relationship Management in the Banking Sector, Understanding the Relationship!
The entire service industry is now metamorphosed to become customer-specific. In this context, the management of customer relationships in the financial services industry demands special focus. Gone are the days when customers at a bank did not mind the long serpentine queues and waited patiently for their turn with a token in their hand. In today’s Internet era, no one has the leisure to wait. In this context, online banking is assuming great significance. Today, banking is more customer-centric, unlike yesterday when it was transaction-centric. As well as, Banks are increasingly focusing on the premise that customers choose the service provider who differentiates through quick and efficient service.
However, there is more to Customer Relationship Management (CRM) than just managing customers and analyzing their behaviors. Banks are well aware that their success is predominantly dependent on the CRM strategies adopted by them. Service providers have recognized that good CRM bonds customers with the organization for a longer-term, resulting in increased revenues.
Things topic 01:
With customers’ expectations becoming even more competitive, banks are coming up with a wide array of novel products and services every day. Also, the challenge is for the banks to work towards ensuring that customers prefer their products and services over that of competing brands.
The key to developing and nurturing a close relationship with customers is by appreciating their needs and preferences and catering to their requirements. Leveraging on IT, to appropriately analyze and understand the needs of existing customers better, to ensure customer satisfaction, and exploring the possibility of cross-selling products to gain a competitive advantage are the other issues drawing attention and interest.
Things topic 02:
With the opening up of the economy, several private sector banks have joined the fray and are offering a plethora of products and services – rechristening themselves as ‘Financial Boutiques’. Knowledge dissemination has been propelled by electronic and mass media campaigns. Today’s knowledgeable consumer is challenging the Indian retail banking industry to redefine itself.
Thus in this current competitive scenario, for a bank to survive competition, succeed, and make a profit, there is hardly any option but to learn from and actively respond to consumers’ needs. As well as, Banks offering retail products need to reorient their strategy from a product-centric to a customer-centric approach to attract and retain High Net Worth Individuals (HNI) and profitable customers as well.
Things topic 03:
The battle of the banks, for gaining a greater slice of the market share, is taking on a new dimension. In the current falling interest rate scenario, banks are finding it increasingly difficult to meet the high growth expectations. To bolster their top lines, banks are in pursuit of newer ways and means of achieving organic growth through strategies that enable the acquisition of new customers and retaining the loyalty of the existing customers. Also, the success of a bank’s strategy towards customer acquisition will depend on its ability to develop customer insights and translate these into effective operating models.
Things topic 04:
Ensuring a good customer experience at every customer touchpoint is the cornerstone of a successful growth strategy. A good customer experience will drive customer acquisition and promote customer retention, which translates into increased profits. This, in other words, is the hallmark of a successful CRM strategy. Emphasis on CRM arises on account of the challenges confronting retail managers managing to sustain and achieve growth and profits.
Things topic 05:
Bankers are conscious of the relative costs of acquiring new customers. As top management emphasizes “delivering results”, most bankers resort to customer grabbing, rather than customer cultivation and creation, with the result that “customer churn” is the call of the day. Incidentally, bankers are fully aware that losing the existing customer and acquiring new customers is an expensive affair. Moreover, it acts as a drain on the existing resources of the bank. Which can be better employed for growth initiatives. Therefore, the challenge for the banks is to retain and deepen the profitability of the existing customer relationships. Which is borne out by Nat West’s success.
Things topic 06:
With the shift from a transaction-centric to a relationship-centric business approach, leveraging CRM has become a sine qua non. Also, Banks are adopting CRM to converge people, processes, and products more effectively to embark on true relationship banking – with the result of accelerating the business momentum. Towards this end, experts propose various ideas and approaches to understanding the fundamental marketing motivations driving Customer Relationship Management in the Banking Sector.
Things topic 07:
To meet the challenging preferences of the customers and to stay ahead of competitors. Bankers are bound to attract customers by providing a spectrum of services. Online banking, ATM banking, and telebanking are just a few of them. As well as, Banks can enhance customer service by leveraging on technology, maintenance of efficient service delivery standards, and business process re-engineering. On their part, employees need to demonstrate certain service traits such as putting on pleasing attire. At the end of the day, bankers should display a flair for cultivating a good relationship with customers through the mechanism of better customer service.
Things topic 08:
Having understood the significance, it is prudent to plan for CRM in retail banks. To a large extent, the success of a CRM plan is dependent on the choice of the software. Towards this end, bankers should identify domain enterprise, credibility in the market, cost implementation, and relationship with the vendor as factors on which vendor selection is based. Also, the domains of software systems, multiple product databases, and tracking require a specific CRM focus. Besides understanding the requirements for CRM implementations such as the setting up of a CRM cell and conducting surveys at periodic intervals to track their effectiveness, banks need to understand how CRM assists them n customer identification, acquisition, and retention.
Things topic 09:
As a part of the planning process, frontline executives in banks should thoroughly understand. Their organizational structure, infrastructure, as well as the production environment. In this context, the management initiatives for CRM assume importance. A top-down CRM focused approach that starts with the top management, percolating, and permeating to all levels of the CRM is a necessity in the present business scenario. Initiatives, such as, introducing CRM audit by independent teams to identify the existing lacunae, and plugging. Also, the loopholes in the CRM strategy as per the recommendations of the audit report are required to adopt by the banks for reaping benefits.
Things topic 10:
It is observed that banks lose their best clients to competitors due to a variety of reasons. The rationale behind losing their best clients to other service providers such as non-brokerage houses. And, mutual fund houses need to analyze by banks. Also, Experts opine that inefficient and improper service is one major reason. The remedies suggested by them are that banks should adopt customer relationship building approaches such as responding to complaints instantaneously. Analyzing the attrition of the clients in a particular product, and rating of services across the network of branches. The creation of a suggestion box to elicit the views and suggestions of their employees. Another dimension of the relationship-building exercise is to obtain electronic feedback from customers to understand. The level of acceptance of existing products, which will facilitate the development of better products.
Things topic 11:
Banks can gain a competitive advantage from CRM by becoming low-cost players in the market, achieving operational efficiency, and maintaining customer loyalty. Also, the ability to predict the products that customers are likely to purchase over a period of time increases. The productivity of managerial executives, sales, and customer service staff. Streamlining of business processes are some of the benefits. Retail banks obtain by taking to successful management of their customer relationships.
Implementing the right CRM tools can enhance customer satisfaction leading to business growth. Also, CRM enables organizations to motivate customers to initiate revenue-generating contacts. Several CRM issues such as its effectiveness, application, and challenges draw the attention of the banking industry. Having witnessed how several global banks have benefited through CRM. The Indian retail banks need to focus on and continuously invest in customer relationship activities, banking scenario. Which is still at an embryonic stage as far as the CRM domain is considered. Needs to strive towards CRM implementation to meet the emerging demands of “universal banking”.
Customer Relationship Management in the Banking Sector.
How to Develop Positive Relationships with Individuals and Organizations Outside of Your Business?
It’s vital for a business to develop as many external contacts as possible. This simple approach can lead to valuable relationships and opportunities that would not otherwise have occurred. Below are some of the best ways you can develop relationships with individuals and organizations outside of your business.
Develop Your Communication Skills and Communication Channels
Before you reach out to certain individuals and organizations, it’s important to prepare properly and have the skills and knowledge required for communicating in an effective way. For instance, if you want to interact with local government representatives and agencies in a more productive way, you may need to hire a consultant or someone who has completed an online master in public administration and who has a great working relationship with the public sector.
In other situations, it may be a good idea for you or someone in your organization to enroll in an online master in public administration degree course or similar program provided by universities like Norwich University, so that you have a permanent person in your company who can deal with government entities that can help your business.
Attend Networking Events
Most people prefer to deal with other individuals and businesses they are familiar with. This means you and your business need to get public exposure. Attending networking events like Chamber of Commerce meetings, conferences, and industry seminars is an effective way to do this. The more times you are seen at these events, the more people will become familiar with you and start to trust you.
Give Your Own Presentations
Initially, when you attend networking events you may be there to listen to other people. However, eventually, you could participate more in these events by giving your own presentations in the area you have expertise in. This once again could lead to a lot of new opportunities, including business offers and referrals from those who listen to your presentations.
Join Online Communities
Today’s business owners live busy lives and it’s not always possible to attend networking events. In other cases, the people you want to interact with may not attend these types of events or they live a long distance away. This is where the internet can come to the rescue because a wide range of online business communities exists.
These communities are usually open to novice business owners, established business owners and people who have a keen interest in the same industry or niche. Interacting with other community members is extremely easy and most members of these websites are more approachable online.
Build Your Own Online Social Profile
It’s important to maintain professional online social media profiles. A huge number of people prefer to use the internet to find out about a business or the people in a business. The more informative your social media profiles are, the more impressed others will be and the more likely it is that they will want to find out more about you and your business.
Networking and building positive relationships with individuals and businesses outside your own organization is an important step if you want your business to succeed and grow. This is not as difficult as it may sound, especially if you follow the steps above.
Controlling and Planning are two separate functions of management, yet they are closely related. The scope of activities if both are overlapping to each other. Without the basis of planning, controlling activities become baseless and without controlling, planning becomes a meaningless exercise. In absence of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each other.
“If you will be understood cover page? so didn’t explain the relationship between controlling and planning because a cover page is clear explained how to communicate the plan to control. First plan what to do, what not to do. Second how to do, how get to do, and whose to do? The plan without control does not work well. Management in a manager if follow the plan, so he is free to control all Superior lower level or employee”.
Know about Controlling; Take into account (an extraneous factor that might affect the results of an experiment).
Determine the behavior or supervise the running of.
Know about Planning; The control of urban development by a local government authority, from which a license must be obtained to build a new property or change an existing one.
Decide on and make arrangements for in advance.
Design or make a plan of (something to be made or built).
The process of making plans for something.
According to Billy Goetz, ” Relationship between the two can be summarized in the following points”.
The process of planning and controlling works on Systems Approach which is as follows
Planning → Results → Corrective Action
Planning proceeds to control and controlling succeeds planning.
Planning and controlling are inseparable functions of management.
Activities are put on rails by planning and they are kept at right place through controlling.
Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise.
Planning and controlling reinforce each other. Each drives the other function of management.
In the present dynamic environment which affects the organization, the strong relationship between the two is very critical and important. In the present day environment, it is quite likely that planning fails due to some unforeseen events. There controlling comes to the rescue. Once controlling is done effectively, it gives us the stimulus to make better plans. Therefore, planning and controlling are inseparable functions of a business enterprise.
Notes: You will know about the definitions of all the seven Processes of Scientific Management; Planning, Organizing, Staffing, Directing, Coordinating, Motivating, Controlling. Planning and Controlling important part of Scientific Management.
