CRM and Stakeholder Management
20th SKOCH Summit, Hyatt Regency, Mumbai, 16-17 July 2009
11 Pages Posted: 1 Feb 2011
Date Written: July 17, 2009
A fundamental truth for any venture is that people are ultimately our only means to the end. Taking a stakeholder focus to any business or civic venture ensures a higher probability of completion and success of such a venture.
A stakeholder is anybody who has a claim, stake or vested interest in the issue at hand, or in an organization, or in his or her relationship with a product, service or brand. Customers are one of most important type of stakeholders. They hold the key to the value in the company and in fact, the company itself.
Organizations cater to different sets of people with different needs and demands. They market their products based on the demands of the customers to maximize their satisfaction. An organization will succeed only when customer needs are satisfied. The focus of every organization has gradually shifted from customer satisfaction to customer delight. Good stakeholder management is fundamental to the ability of a business to deliver enduring change. But there are different groups that need to be accommodated in a stakeholder management plan.
Engaging with a number of individuals and organizations about multiple initiatives and issues can be a complex process for a company to undertake.
Communication is the key to successful stakeholder relationships. Communication with the right people at the right time can improve a valuable relationship, minimize an issue, or ensure a sale. Customer relationship is based on experiences. Customer Relationship Management (CRM) is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. It helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers.
CRM works effectively in situations where the business is relatively stable and there is a large class of stakeholders interacting with the business in a reasonably consistent way. Its focus is to build and maintain a customer centered enterprise cost effectively and generate a good ROI (Bligh 2004). Running a successful CRM project requires a high degree of stakeholder management.
In order to have a better stakeholder management especially in the rural areas which is the bottom of the pyramid, there is a necessity for corporates to work towards financial inclusion for the same technology and communication are the prime moves This paper looks at the relationship between stakeholder management and CRM as India marches to become one of the super powers in the near future by using financial inclusion of its masses with suitable examples of micro finance and other areas from Tamilnadu.
Keywords: CRM, stakeholder, Inclusion
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