Customer Relationship Management Makes Company Leader

CRM shall help a company better and make it a leader in the market.To reach a leading market position, a company must be significantly better than the competition in at least one discipline. like product leadership or having a good customer relationship and know about their customers well.It can then preserve and continue to improve its market advantage .

Being a leader in the market helps to consolidate because
  1. Customers prefer market leaders .
  2. It is easier for market leaders to enter new markets.
  3. Strong market leaders represent a high market entry barrier for new competitors.
  4. Market leaders can negotiate attractive agreements with business partners, which hinders market entry for potential competitors.
  5. Market leaders are able to achieve higher market margins.
  6. Market leaders can use their market presence to dictate the rules for contesting market share in their favor.
Product leadership means that a company can offer products or services that are superior to those of its competitors. Companies that base their competitive strategy on product leadership first need a strong, flexible research and development organization with employees who think and act innovatively, can develop visions into products, can quickly adapt to changing conditions, and know the market, competitors' products, and potential development partners.

Companies that are characterized by an exceptional operational and organizational structure achieve competitive advantages by establishing effective production, sales, and service processes, and by being able to offer products that are competitively priced and less error-prone. Prerequisites for companies acknowledged to have such operational excellence are extremely standardized, simple, and integrated business processes that are centrally planned and strictly controlled, allowing little room for employee creativity.

Companies with customer intimacy do their best to provide their customers with the exact products or services they require within the context of a tailored overall solution. A prerequisite for customer intimacy is a corporate culture that treats customers differently according to their individual requirements and is interested in finding specific rather than general solutions.

This kind of corporate culture seeks to forge long-lasting customer relationships and is based on a corporate structure in which decisions are often made by individual employees working very closely with customers.

A close customer relationship, however, does not mean that a company should treat each customer with the same degree of attention. Companies must focus on the more potentially profitable customers to reach their business objectives.

The maintenance of customer relationships, which is the starting point for all central business processes, thus becomes even more of an obligation. Operational reorganization is recognized as a value by the customer and leads to Improved customer relationships. The same applies for product leadership.

Good CRM and the customer intimacy it brings enable new customer requirements to be recognized earlier and satisfied by suitable products or services more quickly than by other companies. In this way. effective CRM strengthens product leadership and simultaneously boosts customer satisfaction and readiness to buy because of superior products.

Companies can achieve a leading market position when they are continually able to create an actual value for a well defined target customer group within the market Prerequisites for defining a target customer group include a detailed knowledge of the customers, their expectations, and their buying habits, and a close relationship with profitable customers and prospects that positively Influences their buying behavior.

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