Customer relationship management systems and practices

Customer Relationship Management

Given the fact that nowadays competition in any field of activity has become extremely diversified and strong, a company's customer relationship management can make a difference regarding the company's success, leading to competitive advantage in case the company applies suitable CRM strategies, or to failures, in cases the company does not focus very much on this matter. The wireless industry is expanding and developing very fast, new wireless companies are emerging, other wireless companies merge in order to gain more power, and the wireless market itself is characterized by a series of innovations rapidly implemented.

Therefore, in such a competitive environment, CRM is absolutely vital for wireless companies' success and well-functioning. Given the specifics of their activity, wireless companies' CRM strategies follow other directions than traditional ones. The most important factor regarding customer retention is based on close and continuous connection with customers. The company must at all times be present in its customers' mind, which must thing of the company as the most important provider of its desired products.

One of the wireless companies that have been successful at implementing a good CRM strategy is Sprint Nextel. The company's marketing and sales of wireless services are focused on targeted groups of customers, like: individual consumers, businesses, and government customers. The company has developed a series of pricing options and plans in order to satisfy all customer types. Therefore, Sprint Nextel has pricing plans especially designed for business customers, and individual customers (Sprint Nextel, 2006).

Sprint Nextel's customer retention strategy is mostly based on using a variety of sales channels. The main sales channel is consisted of direct sales representatives. Through this sales channel, Sprint Nextel is trying to prove its ability to develop and implement custom communications capabilities that meet the specific needs of all customers. Another main sales channel is represented by retail outlets that are designed in order to focus on sales to the consumer market. These retail outlets include company owed and operated retail stores, and third party retailers like Radio Shack, Best Buy, Target, and Wal-Mart.

In order to satisfy purchasing needs of small businesses and the consumer market, Sprint Nextel uses indirect sales agents at local and national level. The company also uses customer-convenient channels, like web sales and telesales.

In order to improve customer experience and customer care quality, Sprint Nextel operates a series of call centers that receive and respond to inquiries from the company's customers. Call center processes and procedures have been significantly improved. Also, in order to improve functionality for the company's customers, Sprint Nextel will convert the majority of its post-paid subscriber base to a unified billing platform. This action is expected to produce more reliable information.

Sprint Nextel keeps in close and strong connection with its customers, through advertising campaigns that are designed to being the newest and the most complete information to its customers, and through call center that are designed to assist customers, on the other hand. Regarding convenience, the company has implemented a series of actions designed in order to facilitate purchasing for customers. These actions are consolidated through continuous and constant developments.

One of the companies that have not been so successful in developing a serious CRM strategy is BroadPoint Communications. The company was established in the United States and it offered free long distance calling supported by advertising (Wikipedia, 2007). The company did not invest in CRM and the consequence is that BroadPoint filed for liquidation in 2002.

Another wireless company that is very involved in improving customer experience is Verizon Wireless. The company has approximately 63.7 million customers, which makes a leader out of Verizon on the wireless market. Verizon has the highest customer loyalty in the industry, as only 1.17% churn per month (Verizon, 2006). The company is focusing on "providing high-quality customer care, investing in loyalty and retention efforts, and continually monitoring customer satisfaction in all facets of our service" (SEC, 2001). Verizon also considers that the cost of adding new subscribers is one of the most significant cost elements in the wireless industry. The company's CRM programs are focused on ensuring customer convenience and ease of use, and cultivating long-term relationships with the customers.