Concepts in Customer Management and Service

The Customer and Trends

The customer is the recipient of a good, service, product or idea obtained

from a seller, vendor or supplier.

The customer concept is the conduct of all marketing activities with the
belief that the individual customer is the central unit of analysis and action.

CRM is the strategic process of selecting customers that a firm can most
profitably serve and shaping interactions between a company and these
customers. The ultimate goal is to optimize the current and future value of
customers for the company.
• Cultural differences refer to the variations in beliefs, values, behaviors,
and practices that distinguish one group of people from another. These
differences can manifest in various aspects of life, including
communication styles, customs, social norms, and even perceptions of
time and space. Understanding and respecting these differences is
crucial for fostering inclusive and harmonious relationships across
diverse groups.
•
• Breakdown of Cultural Differences
• Beliefs Cultural differences encompass variations in what people
believe to be true, right, or good, often influencing their worldview and
decision-making
• Values Different cultures prioritize different values, such as
individualism vs. collectivism, or tradition vs. innovation, impacting
social interactions and societal structures
• Behaviors Cultural differences can lead to distinct ways of interacting
with others, including communication styles, levels of formality, and
acceptable modes of expression
• Practices Cultural differences also extend to daily routines, customs,
and traditions, such as food preferences, religious rituals, and social
etiquette.

Recognizing and respecting cultural differences is essential for:

• Effective Communication Understanding how different cultures

communicate can prevent misunderstandings and foster more
productive interactions.
• Building Trust Acknowledging and appreciating diverse cultural
perspectives can build stronger relationships and promote mutual
understanding
• Creating Inclusive Environments Embracing cultural diversity leads
to a more welcoming and equitable environment for everyone
•

•
• Examples of Cultural Differences in Service
• Directness vs. Indirectness:
• Some cultures, like those in North America, value direct and assertive
communication, while others, like those in Asia, may prefer indirect
and subtle communication.
• Punctuality:
• In some cultures, punctuality is highly valued, while in others, being a
few minutes late may be considered acceptable.
• Level of Authority:
• Some cultures value hierarchical structures and expect service
providers to be authoritative, while others prefer a more collaborative
and egalitarian approach.
• Nonverbal Communication:
• Body language, facial expressions, and gestures can have different
meanings across cultures. Understanding these differences is crucial
for effective communication.

Importance of Recognizing Cultural Differences in Service

• Improving Customer Satisfaction:

• By understanding and accommodating cultural differences, businesses
can create a more positive and satisfying experience for customers
from diverse backgrounds.
• Enhancing Communication:
• Being aware of cultural differences in communication styles can help
businesses avoid misunderstandings and build stronger relationships
with customers.

• Fostering a Diverse and Inclusive Workplace:

• Recognizing and valuing cultural differences can create a more
inclusive workplace where employees from diverse backgrounds feel
valued and respected.
• Building a Stronger Brand Reputation:
• By demonstrating a commitment to cultural sensitivity and inclusion,
businesses can build a stronger brand reputation and attract a wider
customer base
Evolution of CRM
There is nothing new in the fact that solid customer relationships are key to
business success. With the increasing number of innovations, industry
experts are developing new ways to enhance customer satisfaction, and
this is where CRM comes in. Today, it is impossible for a business to
function without CRM, which clearly indicates the impact it has made. Let’s
have a look back at its journey.

From the age of the Barter system, the importance of user satisfaction is
visible. And with modern-day technology, such as Customer Relationship
Management (CRM), customer satisfaction is further amplified. Have a look
at the key milestones in the evolution of CRM.

1950s - 1970s: Pre - PC Era

Although pen and paper did the job of recording customer data, over time,
it became a massive hassle as the business expanded. The Rolodex
(rolling dex) was invented in 1956 to store customer data. As mainframe
computers came into existence, a digital database was created, which laid
the groundwork for future CRM.

1980s - Mid 90s : Origin of CRM

As technology advanced, the Contact Management System was

developed. Everything from names, email addresses, phone numbers, etc,
could be stored here. However, the primary focus of CMS was sales
management and not on customer relationships.

The 90s kickstarted innovations that laid the foundation for modern CRM.
Its first step was the introduction of Sales Force Automation (SFA). This
allowed daily repetitive tasks, such as tracking, recording, pipeline
management, etc, to be automated. Resultantly, productivity increased as
employees could spend more time and effort on other important tasks.

Remember Rolodex that was mentioned earlier? The company, Conductor

Software, launched the digital version of Rolodex called ACT! It was the
first popular contact management tool, and for small businesses, this was
great news. Organizing and managing sales leads, contact details of
customers, calendar events, etc, was done with a single click.
In 1993, Siebel Systems was founded, which marked the beginning of
comprehensive CRM solutions. Towards the late 90s, CRM evolved to
include sales, marketing, and customer service as its key functionalities,
that is, operational CRM. The first web-based CRM was launched by
Salesforce, and thus the traditional CRM began to fade out of the picture.

The 2000s - 2020s: Modern CRM Systems

With each passing day, CRM technology took shape and form to
accommodate the needs of businesses of all sizes and types. Web-based
CRM began to be adopted widely. And soon, it was integrated with
business systems and other platforms to further ease daily tasks.

The 2000s was also when social media was on the rise. By the end of the
decade, CRMs started integrating with social media platforms like
Facebook, Twitter, and Instagram. Businesses could better understand
customer needs, preferences, thoughts, and so on based on likes and
comments. Today, for those wanting to build a social presence, Social
CRMs serve as one of the key components of CRM solutions. As CRM
integration took place rapidly, mobile CRM versions also hit the scene,
allowing users, especially sales representatives, to access the application
irrespective of location.

Artificial intelligence (AI) was incorporated into the CRM system in the late
2010s, which enabled CRMs to analyze large volumes of data. The key
benefits include improved sales tracking, automated suggestions for email
and chat content, and generating valuable customer insights for better
decision-making. These helped customer-facing teams provide a
personalized customer service.

That is, AI utilizes the customer data such as profiles and previous
interactions to provide a solution that perfectly aligns with needs. Customer
enquiries therefore become easier to manage resulting in timely responses.
With the changing business needs and technological advancements, AI
powered CRM continues to be influenced.

CRM Software Industry Today

The CRM software industry grows with each update of its application which
shows that the evolution of CRM is a continuous process.
Features such as virtual assistants and chatbots are being built into the
CRM. AI-powered CRM continues to evolve alongside technological
updates.

Today’s CRMs act as centralized platforms for employees to store and

access data across the organization. They reduce manual efforts to a great
extent via automation capabilities. Several tools are available to manage
everything from tracking data to brand loyalty. These include lead
management, opportunity management, sales and marketing automation,
customer support, analytics and reporting, etc. They work together to
maximize user engagement and a seamless customer experience.

CRMs simply help you get things done faster with minimal manual effort.
There is increased productivity, better pipeline management, better
workflows, customized services, accurate sales forecasts, etc.

Future of CRM

Looking back at CRM history, from a digital database to the creation of

modern-day CRM, the journey has been remarkable. And the best part?
The CRM evolution continues and always will, to meet the needs of
businesses of all sizes.

With AI and Machine Learning, CRM is likely to undergo more updates in

the future to take customer experience to a whole new level. This also
means improved data privacy, which is critical for future CRM platforms to
prevent any potential cyberattacks. Undoubtedly, the future of CRM looks
promising.

What is a CRM (customer relationship management)?

A CRM (customer relationship management) is a software that helps you

manage your leads and customers throughout the sales cycle. So the
moment a lead is generated through your marketing channels the CRM’s
role is to help you

 Interact with leads via phone calls, SMS, email and WhatsApp from
within the application
 Store all interactions in one central hub for easy accessibility and
tracking
  Automate manual repetitive tasks like sending follow-up messages
and assigning leads to sales team
 Track how your business is performing through metrics like lead
conversion rate, revenue generated, number of closures, etc.
 and much more! (to be discussed later)

A CRM software is an end-to-end solution to all these problems – it helps

you manage data effectively, track all customer interactions and assess
how a business is performing — all from one dashboard.

How does the CRM work and what are its top features?

• A CRM is not a one-and-done process, it performs in cycles:

• Lead is generated, it is nurtured, the deal is closed or lost

• Sales performance is evaluated

• Necessary changes are made both on the sales and marketing end

• As a result, new leads are generated and the cycle keeps on going
 Types of CRM systems and their key functions

Here’s a walkthrough of exactly how a CRM functions with the help of its
features:

The type of CRM depends on specific use cases but most CRMs offer all
the functionalities but at their core have one specific function that makes
them stand out. Some of the common types are:

Type of CRM Purpose Key features Who it’s for

Operational Simplifies and Sales management Startups, small

CRM automates Marketing automation businesses, and
customer-facing Campaign scheduling growing sales
processes Ticket management, teams focusing on
Workflow automation customer
interactions

Analytical Collects and Centralises data from Businesses looking

CRM analyses multiple channels Customer for data-driven
customer data segmentation Trend strategies and
for actionable analysis metrics ROI insights to boost
insights tracking and reporting sales and marketing
efforts

Collaborative Ensures Unified customer view: Businesses with

CRM seamless Feedback sharing multiple teams
communication Team collaboration (sales, marketing,
across Partner/vendor support) working
departments collaboration together towards
common goals

Mobile CRM Enables access Access CRM from Sales teams, field
to CRM data on smartphones/tablets- executives, or
the go Update leads and data in businesses
real-time requiring on-the-
move operations

WhatsApp Integrates Manage customer Businesses relying

CRM WhatsApp with interactions via WhatsApp on fast, personal
Type of CRM Purpose Key features Who it’s for

CRM for Track WhatsApp communication

seamless conversations within CRM (e.g., small
communication businesses,
startups)

Strategic Focuses on Customer segmentation for Businesses

CRM long-term targeted campaigns prioritising customer
customer Tailor strategies to retention and long-
relationship customer behaviours and term loyalty
development needs

B2C CRM Tailors customer Personalised B2C businesses

strategies to communication Centralised focused on
meet individual data management improving customer
consumer needs experiences and
driving customer
loyalty.

What are the benefits of a CRM software?

1. Improved customer relationships

A CRM helps you maintain a personal touch, even as your customer base
grows. By storing every interaction, preference and purchase history, it
allows you to personalize every conversation.

For example: Imagine a customer calls your team with a query and your
sales rep instantly sees their last purchase and the issue they reported last
month. Instead of repeating the same questions, your team can jump
straight to providing solutions, making the customer feel valued and
understood.

2. Faster and more organized follow-ups

With automated reminders and a clear view of your sales pipeline, a CRM
ensures no lead is forgotten.
For example: A lead fills out a form on your website showing interest in a
product. The CRM not only assigns the lead to a sales rep but also
schedules a follow-up call for the next day. The sales rep gets an alert and
is fully prepared for the conversation, increasing the chances of closing the
deal.

3. Increased team efficiency

CRMs eliminate repetitive tasks, streamline communication and keep the

team focused on high-value activities.

For example: Your sales manager uses the CRM to assign leads based on
interest level while automating follow-up messages for cold leads. The
team no longer wastes time sorting through who should handle which lead,
allowing them to focus on closing deals instead of logistics.

4. Clear visibility into performance

With performance reports and dashboards, you can track progress, identify
bottlenecks and make data-driven decisions.

For example: At the end of the month, your CRM shows that 70% of deals
are stuck in the “Proposal Sent” stage. This insight helps you pinpoint the
issue — maybe the proposal template needs improvement or follow-ups
need to be more aggressive. With this clarity, your team can adjust
strategies and boost conversions in the next cycle.

5. Better collaboration across teams

A CRM acts as a central hub, ensuring that everyone — sales, marketing

and support — has access to the same information.

For example: A marketer launches a new campaign and generates 200

leads. The CRM automatically shares these leads with the sales team while
tracking which leads convert. Meanwhile, the support team can see which
customers came from the campaign, ensuring they deliver a consistent
brand experience.
6. Enhanced customer retention

Keeping customers is just as important as acquiring them. A CRM helps

you anticipate their needs, address issues proactively and keep them
engaged.

For example: A customer hasn’t purchased anything in six months. The

CRM flags this inactivity and triggers a personalised email offering a
discount or a new product recommendation. This outreach brings the
customer back into the sales funnel, boosting retention rates.

As your business grows, a CRM grows with you. It adapts to handle more
leads, customers and team members without compromising efficiency.

For example: When your team grows from 5 to 20 members, the CRM lets
you assign roles, set permissions and organise workflows effortlessly. You
maintain the same level of efficiency, even as the workload triples.

Here’s a clean and structured table summarising all the CRM types
discussed in your blog. This table will serve as a quick reference for
readers to compare the different CRM types and identify the one that best
suits their business needs.

The 7 C’s of Customer Relationship Management

Customer Centricity This is the idea that being dogmatic about your
customers will bring you success. It’s about putting customers at the center
of your business and making every decision with their best interest in mind.

Company Culture is the personality of your business. This includes how

employees interact with customers, how leaders treat employees, and how
you behave as a brand towards customers.
Customer Experience This includes everything from the first time a
customer hears about you to the time they engage in your product or
service to after they have left an interaction with you. Your customer
experience must be memorable and pleasant throughout each step of the
process.
Customer Data Using data, marketers can measure statistics like
conversion rates, retention rates, average spending amounts, and more.
Then, they can use this data to improve their customer experience.
Customer Journey The customer journey refers to all the touchpoints
along a person’s path to becoming a customer and, eventually, a loyal
customer. During this journey, several steps need to be met for someone to
become a repeat customer and advocate for your company.
Consumer Experience The consumer experience is what people
remember about interacting with your brand after their first purchase or
interaction has ended. It’s how they feel about your brand after doing
business with you and how likely they are to buy from you again.
Consumer Expectations Consumer expectations are what consumers
think about when considering interacting with you or buying from you
again. For example, when someone thinks about buying, they expect fast
and free shipping options. You may have consistently built up consumer
expectations over time by providing those services.

PROVIDNG SERVICE EXCELLENCE

Delivering service excellence means consistently exceeding customer
expectations by creating memorable, positive experiences and building strong,
lasting relationships. It goes beyond providing basic service and requires a
commitment to understanding and addressing customer needs, resolving issues
effectively, and continuously striving to improve.
What Does it mean to provide excellent service?
• Excellence in customer service means consistently exceeding customer
expectations by anticipating their needs and creating memorable, positive
experiences. It requires going beyond standard service to build strong,
lasting relationships that promote customer loyalty and satisfaction.
What is the exact difference between Service Excellence and excellent service?
• Service Excellence is defined as the “capabilities of an organization to
consistently deliver excellent services” (ISO 23592). In consequence,
excellent service is the “output of an organization with a high level of
service provision performed between the organization and the customer to
achieve outstanding customer experiences that lead to customer delight”
(ISO 23592).
• Service excellence as a company’s resource and excellent service as an
output
What is the key to Service Excellence?
Service excellence requires not only that employees are technically
competent, but also that they are empathetic and actively seek to recognize,
understand and meet the customer's needs. It requires constant development
and adaptation to the changing needs and expectations of customers.
Benefits of Service Excellence
• To Employees
When we adopt a mindset of pursuing excellence, our effort, confidence, and
attitude elevate. We become more positive, more driven, and more motivated to
achieve greatness. By consistently choosing excellence, we not only improve
ourselves but also open the door to new opportunities.
• Enhance Employee Confidence
• Increased Job Satisfaction
• Positive Work Culture
• Professional Development
 • Improve Communication and Listening Skills
To Organization
• Service excellence significantly benefits organizations by enhancing
customer satisfaction, loyalty, and ultimately, profitability. By consistently
delivering high-quality services, organizations can build a strong brand
reputation, attract and retain customers, and foster a culture of excellence
that extends to employee engagement and satisfaction
• Increased Customer Satisfaction and Loyalty:
• Positive Experiences
• Repeat Business
• Word-of-Mouth Marketing
• Stronger Brand Reputation and Image
• Competitive Advantage
• Trust and Credibility
• Enhanced Employee Engagement and Morale
• Pride in Work
• Reduced Turnover
• Increased Revenue and Profitability
• Higher Sales
• Higher Sales
• Premium Pricing
• Improved Business Operations and Efficiency
• Streamlined Processes
• Reduced Customer Complaints
• Other Benefits
• Attracting New Customers
 • Improved Marketing
• Building Trust and Relationships:
To the Customers
• Service excellence benefits customers by boosting their loyalty and
satisfaction, leading to increased repeat business and positive word-of-
mouth referrals. It also fosters trust, making customers feel valued and
important, and potentially influencing their brand perception.
• Increased Loyalty and Retention
• Trust and Bonds
• Customer Retention
• Repeat Business
• 2. Enhanced Brand Perception and Reputation
• Positive Word of Mouth
• Stronger Brand Image
• Competitive Advantage
• Customer Satisfaction and Happiness
• Positive Experiences
• Valued Customers
• Increased Revenue and Profits
• Loyal Customers
• Reduced Cost
• Customer Advocacy
• Brand Ambassadors
• Referrals