Business Relationship Management
The success or failure of any business depends on the management of its clients and other related parties. Success is the outcome of a combined effort and It is very essential to have a healthy relation with all the parties which consists of customers, suppliers, employees, government etc so that the business can make sure all of them are doing their part well.
Supplier Relationship Management
Supplier Relation Management is the discipline of strategically planning for, and managing, all interactions with third party organizations that supply goods and services to organizations in order to maximize the value of those interactions.
Importance of Supplier Relationship Management
A good relationship with your suppliers is just as important. Supplier relationship management (SRM) is one area all businesses need to become good at because it can have significant effects. The natural focus of companies is on fostering customer loyalty but that’s not the only relationship you should be nurturing.
Features of Supplier Relationship
Here are some features of a good Supplier Relationship Management.
- It Optimizes supplier relationship
- It Creates competitive advantage and brings better and more customer-centric solutions to market
- It Lengthen and strengthen critical supplier relationships
- İt Reduces direct and indirect costs and improve service
- It Improves the profitability of both the focus company and the suppliers
- It Identifies what to purchase and from whom
A better Supplier Relationship Management exists on how they can overcome the challenges, incoming and the following challenges such as
Unclear expectations, not mutually beneficial (Win-Win), Buyers multi-supplier environment, Miscommunication, Poor governance, Poor cultural fit, Lack of coordinated management.
Customer Relationship Management
Customer Relationship Management (CRM) is an approach to managing a company’s interaction with current and future customers. The Customer Relationship Management approach tries to analyze data about customers history with a company, to improve business relationships with customers, specifically focusing on customer retention, and ultimately to drive sale growth.
Importance of Customer Relationship Management
Customer is an unavoidable fact in every level of business activity. For every busies customer is important to them and that’s why Customer Relationship Management is there to take care of them and here are some duties of Customer Relationship management officials do,
They develop better communication channels, Collect customer related data, Create detailed profiles of individual customers, Increased customer satisfaction, Access to customer account history, Identify new selling opportunities, Increased market share and profit margin, Increased revenues, More effective reach and marketing and Improved customer service and support.
Features of Customer Relationship Management
The features of Customer Relationship Management is Customer Relationship Management establishes relationship with customers on an individual basis to treat different customers differently
Interaction between company and its customer, Enables organisations to gain ‘competitive advantage’ over competitors, Strategy to optimize profitability, revenue and customer satisfaction, Technically integrated system required to exchange data and optimize customer value, Fosters customer-satisfying behaviours, Implementation of customer-centric processes.
Types of Customers
According to Customer Relationship Management customers are divided into prospective customers, vulnerable customers, Win-back customers and loyal customers.
Components of Customer Relationship Management
The major components are Customer Relationship Management is Product, Price, Placemen and Promotion.
Relationship between Supplier Relationship Management (SRM) & Customer Relationship Management (CRM)
Supplier Relationship management is the combination of Suppliers providing Raw materials and Components to Manufacturers. Whereas the Customer Relationships Management is the combination of Manufacturer who manufacture the product and give it to the Customers via Distributors, Wholesalers, Retailers and End consumers.