Application of 80/20 law in Customer Relationship Management (CRM)

80/20Application of Law in Customer Relationship Management

· Guo Jing · AMT

For any enterprise, customers are the most valuable resources for the survival and development of the enterprise. maintaining and increasing customer loyalty is one of the business objectives of modern enterprises. As the leader in Customer Relationship Management, call centers shoulder the burden of increasing customer loyalty. Here we should mention a law widely recognized and applied by economics: the 80/20 law. The 80/20 law was one of the first research results published by bilfredo Pao, an Italian economist in the 19th century, and later became the 80/20 law ). For this law, the most common analogy is that 100 viewers are watching TV programs, 80% of which are watching 20% of the programs. In other words, there are many TV programs, however, only a few of them attract the vast majority of viewers. Specifically, for customers who have business dealings with the company, 80% of the business comes from 20% of the customers. Similarly, for potential customers who have no business dealings with the company but want to win, 80% of the potential businesses come from 20% of potential customers (potential customers can be considered to be potential customers who have been in contact with your company once or many times or have been in contact with your company, the contact system here no matter how long ago ). The 80/20 law not only brings benefits to our market and sales, but also enables enterprises to accurately grasp the market and develop products with strong market share. It also acts on the customer service layer, because modern customer service is far from limited to providing after-sales services only for customers, it analyzes and mines the customer's purchase potential on the basis of the service, that is, the purchase qualification. To do this, you must first confirm the purchase qualifications of all customers, that is, analyze the customer's contribution to the enterprise from the previous business, and rank the customer successively. The specific operation is as follows: Step 1: List active customers. You can set active customer standards based on the company's internal conditions, and then find the top 20% from the active list. Taking a retail enterprise as an example, the ranking criteria can be measured based on the following criteria: 1. Date of the customer's recent transaction; 2. The largest purchase volume per year; 3. The most frequent purchase of a consumable Product; 4. the maximum annual purchase amount. The first item is the basic standard, and the last three items are the reference standards. Based on the different business needs of different enterprises, you can choose one or more from the last three items on the basis of the first item for comprehensive scheduling. Generally, the scheduling of several criteria is more scientific. For example, 20% of customers with the largest annual purchase amount are directly the biggest customers, but unexpected sales errors are inevitable, for example, if a company purchases a large number of products temporarily or for other reasons, rather than purchasing them for a long time, such customers will not be worth the candle if we continue to invest a lot of manpower and material resources as key customers; another example is that although a company's yearly purchase volume and purchase amount are not the highest, it has a strong purchasing power for a product in your company, this means that 80% of the customers of this product are within the scope of 20% of customers. Therefore, when determining the customer ranking, you must consider a variety of factors, make a comprehensive consideration, and analyze specific issues. After a large list of active customer qualifications is selected, You can rank the list again, that is, to further filter 20% of the list. The filtering criteria are also diverse. Because it is re-filtered, you can make specific rankings for different types of products. The significance of ranking is to analyze the most valuable customers for our company. Customer ranking statistics can be directly obtained from sales data. The measurement criteria for potential customers are the same, but the specific data is not from the existing sales data, but from the call center. We need to analyze the functions of the call center. The call center can be divided: 1. Market: market behavior refers to a wide range of customer purchase information, which refers to all marketing activities, including collecting information about the customer's initial, basic, and additional purchase potential; 2. Exploring potential customers: exploring potential customers is specific to obtaining the purchase qualifications of potential customers. It refers to various possible channels (including telephone, email, and general mail) get in touch with potential customers and obtain relevant customer information; Note: In traditional consciousness, the call center is often fixed to contact the customer by phone, what the call center can do is to use telephone as the main tool and attach all other feasible and suitable contact methods to contact the Customer. If necessary, the call center can even use telephone as the auxiliary tool, other contact methods are the main contact methods; 3. Sales: the customer's purchase qualifications must be provided in the sales behaviors to continue targeted sales and customer services, and the customer's purchase qualifications can also be analyzed based on the customer's purchase behaviors. All behaviors that sell goods to customers; 4. Customer Service: like the sales behavior, you must provide the customer's purchase qualifications to continue targeted sales and customer services. You can also analyze the customer's purchase qualifications based on the customer's purchase behavior. Provide corresponding support and services to customers. In the above four types of telephone processing, the call center needs to master and obtain the purchase qualifications of the customer and potential customer, and can re-confirm the qualification through each contact with the customer. When performing outbound calls, such as product sales, market research, and customer satisfaction survey, you can select the most valuable customer first, and increase the contact frequency as appropriate. The wings of Call Center Customer Relationship Management, which leads modern enterprise customer relationship management to soar in the vast Mall.