CRM (Customer Relationship Management) is a very important concept in recent years. My thoughts on this subject, I want to convey Turkey in the light of developments in the economy.

When we look at the strategic situation of today's business world, we see three basic changes:

Profitless

The commoditization,

Differentiation

This is not a temporary situation, but a reality of today's world. Expectations are not correct as the increase in our profitability will improve as a result of the improvement of the economy in the future and the liquidation of our competitors.

If it had been true, there would have been a huge increase in the operational profitability of banks, as many banks were out of the system in the past. Because the growing profit increase is not directly related to the growth of the economy. When the interest falls and the economy begins to grow, more competitors will enter the market and the share we receive from the cake will not increase again. As a result of increasing competition, increasing number of firms in every sector and basic standards in the products become commodities. So, if you buy a washing machine today, there is no big difference between brands in terms of product features, service and price. We can see this in many products.

When we look at banking, all kinds of banking products and services are offered in almost every bank in the same way and at approximately the same price. Some banks are trying to increase their share of the market by selling to their products in some products, or they are trying to meet their losses due to the service / product they offer by cross selling. Except for exceptional campaigns like this, prices are almost the same.

When a company makes a differentiation in the product, it can do the same in other companies in a short time. In a world where trade boundaries are completely eliminated, the number of competitor’s increases in both real and virtual environments of trade, and product and ma business design become almost the same, it cannot be anything more vital and more useful than getting rid of commoditization pressure and seeking opportunities and opportunities to different I'm thinking. The fundamental source of profit in today's economy is now differentiating, with differentiation and changing conditions deeply affecting all of us. Here, there is no such thing as finding a different product, because there is no difference in the products, both because it will be imitated in a short time and there is not much to do on the basis of product performance. No chance of success. Therefore, we need to put the product-centered thought aside. Of course, the products and services of existing competitors do not have worse.

What we need to do then is to initiate very close and interactive relationships for the customers, to find out what kind of organization they want, to see how the customer can meet these requests to the nearest competitors, and finally, the customer wants products and services as the customer wants. it is necessary to bring it to him.

If we look at where we are in this issue for our companies, when we first look at it, we see that the information is gathered in a very sloppy way when the customers are opening their accounts. The contact information, which is one of the most important information about the customers, is either not displayed or entered incorrectly. If account opening dates are old, it is probably not updated. This shows that we are not aware of the importance of the subject.

In this case, even when a new employee arrives at the Firm, he can encounter great difficulties even when he wants to scan existing customers and cannot easily access the simplest information. When the company organizes a sales campaign, the high chances of success will increase in proportion to how much it recognizes its existing customers.

When our staff establishes a relationship with their new customers, full and accurate information should be displayed and updated. Today, even the simplest information about the customer can make a difference in favor of our Bank against other competitors. Our new products can be imitated, but there will be detailed information that each of our customers will have on their customers, which will make a difference.

I've seen many of the good clients I've known before, that I've somehow registered in the company I've been consulting, but most of them are not working actively. This means we have very good customers among our existing customers. However, it is necessary to make good marketing and re-activate them. I think many of our employees are not aware of this treasure.

Profit Shift:

Now customers in many sectors and many markets are not all profitable. On the contrary, most of the customers are unprofitable. According to the examination made in Sweden Kanthal Electronic Company; 40% of the customer base, 150% of the profits. The other 20% just head to head. The loss of the last 40% is 50% of the profits.

It is same in the banks. According to the statistical studies conducted in the United States when an examination with realistic costs; average 30% of the customer base in banks provides 130% profit. The other 30% may be coping with the head and the remaining 40% actually do the loss, and perhaps the profits from the company's profitable customers are melting.

The first thing that needs to be done here is to analyze all customers individually with real costs and to know how much profit from which customers are made. According to the results, it is the smartest way to send unprofitable customers to opponents.

Garanti Bank branches would be very crowded in the past years. For this reason, many productive customers complained that their business was not working properly. They have created a special box office for their existing efficient customers. All the monetary affairs started to be made for private firms by these special tolls. Another method used increased the box office fees from the street to their inefficient customers using the bank. On the other hand, customers who complain about this issue are directing their transactions via telephone banking, internet branch or ATMs.

Because if we cannot get rid of the customers who are damaging, both our losses will increase, our profits will melt and we will not be able to take care of our profitable customers and maybe we will lose them in the medium term. The main goal should be to better serve our profitable customers and increase the volume of business with them.

The customer is keen, more than the competition and no loyalty at all. Increase market share; it is possible to expand the customer base; increasing the number of the faithful. For this reason, it is not possible to provide customer loyalty by putting all customers in the same order. Because the money-saving customer is demanding a special service and they realize that there are plenty of alternatives.

This is why customer knowledge is particularly important to identify the most profitable customer groups and their needs. The aim is not only to increase the market share, but also to increase the volume of the work done with the profitable customer, thus increasing the profit. The goal should be to sell a lot of profit and not sell much, to sell less profit.

The first step is the establishment of the customer profitability system.

After that, which customer will be differentiated at what price and level should be determined? It is necessary to carefully evaluate the potential customers in the future. It will also be appropriate to decide how much more investments will be made to these companies.

It is extremely inconvenient to say that every customer is a potential customer in the long run. You need to carefully determine potential customers. It is necessary not to waste time with the customers who are non-potential, who don't make money to our company and even harm them with real costs.

What can be our marketing strategy?

We have left our company to win back the good customers.

Creating loyalty to existing customers.

Find new customers.

Cross-selling to existing and potential customers.

In a study conducted in the United States, 50% of customers using a single product leave the Bank within a year. However, for example, customers who have both a checking account and a term deposit have a 10% rate of leaving the bank within 1 year.

The result is the ability to significantly increase customer loyalty to sell multiple products to existing customers.

Therefore cross-marketing is extremely important. In this case, the first requirement is to follow the cross-product usage very closely, to follow the headquarters in a healthy way and to direct the branches.

We can summarize the things described so far;

The cost of finding a new customer is much greater than keeping the existing customer, A 5% increase in the repeat business brings a much greater increase in profitability.

Our best customers bring a few times more revenue than others on average.

CRM should not be considered as software. The first step should start with the effort to place the culture of change in the institution. The methodology is to establish the triangle of education, corporate culture and organizational structure correctly. The most important thing is to repeat the need to change the structure of thinking within the institution. Product-centered business design to switch to customer center.

The end result is one: to develop a relationship with the customer and to be able to do different marketing to each customer.

Perhaps the first thing we need to do before creating a company-based strategy for CRM is to make a serious strategy difference analysis with all employees. I mean, “Where are we? What can we be? And by the way, what's the difference? Then we ask what can we do to close this difference? I think that a change strategy can be created and the implementation can be started with small steps.

Yours truly,

Bülent İlkehan

General Manager

0 212 371 86 48

bilkehan@argusdanismanlik.com

Note:

This article, which I wrote in 2003, has still not lost its importance and timeliness. We're publishing again.