Traditionally, manufacturers created products, then sold those products to their customers without getting into the customer relationship management side of the process. Now, for a manufacturer to succeed, it must change the way it does business. Catering to customers keeps them coming back for more; and the way to do that is to implement a customer relationship management (CRM) program.
A customer relationship management software program, such as Microsoft Dynamics CRM keeps track of customers and the customers’ needs and preferences. The average person may think of heavy machines when he or she thinks of manufacturing, and that is partially correct. Manufacturers also make things that you — the end user — needs, such as flooring for a home, block for landscaping, parts to repair a car or landscaping equipment and so on.
Instead of forcing the customer to choose from a few different styles, the manufacturer can create new styles based on popularity or for special orders for customers. For example, if Joe Smith wants a specific flooring for his home, the manufacturer may make that type of flooring if the changes to the manufacturing process are not cost prohibitive. However, if a big box store notices that several people have come in asking for a specific type of flooring, it can request that type of flooring in bulk from the manufacturer.
A better way would be to keep a database of people and companies. In addition to the standard customer information, it could include specific requests from all customers, whether individuals or large companies that purchase in bulk.
Once the manufacturer sees that there are several requests for a specific product, the manufacturer can produce that option and offer it as a new line, even before customers ask for it. A customer will more than likely become a repeat buyer, especially if that customer is a retailer that purchases in bulk.
Furthermore, customer relationship management software can help the manufacturer determine other trends that customers are following, thus allowing the manufacturer to be ahead of its competitors. Keeping customers, no matter how small, happy means repeat business and increased profits. Part of this is knowing the customer. Since all transactions are recorded, the manufacture gets a wide view of each customers, and customers as a group, thus helping to understand the buyers.
Another benefit to using CRM software is that the manufacturer is not making product that is sitting on the shelves. The CRM software shows what is being purchased, and if a manufacturer sees that a certain product is not moving, it can stop or slow production of that product in favor of increasing production of a fast-selling product. This also saves the manufacturer money, thus increasing return on investments and profits.
In short, customer relationship management provides a manufacturer with business stability, makes it cost effective, provides order management, improves data flow, increases the manufacturer’s profit margin and optimizes the manufacturer’s resources, in addition to several other benefits.
Burt Gibson writes about CRM, office software, and more.
