Nexa Lab Blog – In the scenario of modern business today, what we have done visibly is shift our focus towards a market orientation strategy that puts customer needs at the top. Learn more about why Customer Relationship Management is crucial. Especially for a market-oriented approach.
This was not about selling products; it is rather understanding and responding to what our customers really want and need.”.
Market orientation wants us to just align our overall business strategy to market demands.
We help our customers develop an interest in our products and services by creating them in line with market demands. The expected results of such a process are customer satisfaction, loyalty, and, thereafter, business success.
How can we, therefore, gain an understanding of this degree with respect to the customer?
There is where CRM fits. CRM is not a tool; it’s an enabler for a market-driven approach, which gives us wherewithal to collect, analyse, and act on customer data effectively.
Today, we are going to explore how CRM software can help the market-oriented approach in the business.
To start the topics, let’s get to know what a market-oriented business approach means.
and market orientation will be identified; the reasons behind the inviolability of customer relationship management in today’s customer-centred business environments will also be revealed.
What Does Market-Oriented Business Approach Mean?
Before we delve into the nitty-gritty, let’s get on the same page about what market orientation actually means.
Market orientation is a business approach that puts the customer at the heart of everything we do. It’s about understanding and anticipating customer needs, and then aligning our entire business strategy to meet those needs effectively.
When we adopt a market-oriented approach, we’re essentially saying, “Hey, what do our customers really want? How can we deliver that better than anyone else?”
It’s a shift from simply pushing products to truly understanding and responding to market demands.
You might be wondering, “Isn’t this just common sense?”
Well, you’d be surprised how many businesses still operate with a product-first mentality. Market orientation flips that on its head, making customers the driving force behind all business decisions.
This approach requires us to be constantly tuned into the market, listening to customer feedback, analysing trends, and adapting our strategies accordingly. It’s not a one-time effort but an ongoing commitment to staying relevant and valuable to our customers.
More on Nexalab’s blog: What Is a Customer Relationship Management System? All You Need to Know
How CRM Software Can Help Market-Oriented Business Approach
Now, here’s where customer relationship management (CRM) comes into play. CRM is like the engine that powers our market-oriented approach. It’s the system that helps us gather, analyse, and act on customer information to build stronger, more profitable relationships.
According to Shopper Approved here’s how CRM supports the key components of market orientation:
1. Enhancing Customer Orientation
CRM systems are our secret weapon when it comes to understanding our customers. They allow us to:
- Track customer interactions across all touchpoints
- Analyse buying patterns and preferences
- Predict future needs based on historical data
- Personalise communications and offerings
For example, imagine you’re running a local coffee shop.
Your CRM might tell you that Sarah always orders a soy latte on Monday mornings. Armed with this information, you can ensure you’re well-stocked with soy milk and maybe even have her order ready when she walks in. That’s customer orientation in action!
But it goes beyond just remembering preferences.
A robust CRM system can help us identify trends in customer behaviour, allowing us to anticipate needs before they even arise. Maybe we notice that customers who buy our espresso beans often purchase a new grinder within six months. We could use this insight to offer timely grinder maintenance tips or special offers on new grinders, enhancing the customer experience and potentially boosting sales.
Some CRM software even helps us to understand trends in customer behaviour. This kind of feature enables us to know what customers will need even before customers express it.
For example, through the CRM software data, we find out that within six months, many people buying our espresso beans are buying a new grinder.
We could follow up with timely grinder maintenance tips or special offers on new grinders that enhance the customer experience and hopefully drive additional sales.
2. Supporting Competitor Orientation
While CRM is primarily about our customers, it also helps us keep an eye on the competition.
There are many things that we can do if we understand our competitor.
We can do things such as identify gaps in the market that competitors aren’t filling, recognise when customers are at risk of switching to a competitor, and benchmark our performance against industry standards.
Let’s say you notice through your CRM that customers who buy “Product A” often enquire about a feature that you don’t offer, but your competitor does.
That’s valuable intel that can drive product development and help you stay ahead of the curve.
Moreover, CRM can help us track customer sentiment about our brand versus competitors.
If we start seeing a trend of customers mentioning a competitor’s new offering, we can quickly assess the threat and develop strategies to maintain our competitive edge.
3. Facilitating Interfunctional Coordination
CRM isn’t just for the sales and marketing teams. When used effectively, it can break down silos and improve coordination across the entire organisation. Here’s how:
- Sharing customer insights across departments
- Aligning goals and KPIs around customer satisfaction
- Enabling seamless handoffs between teams (e.g., from sales to customer service)
Imagine a customer calls with a complaint about a recent purchase.
With a good CRM system, your customer service rep can instantly see the customer’s purchase history, previous interactions, and any notes from the sales team. This allows for a much smoother resolution process.
But it doesn’t stop there. The product development team can access feedback logged in the CRM to inform future improvements.
The marketing team can use customer data to create more targeted campaigns. Even the finance department can benefit from insights into customer payment preferences and behaviour.
Benefits of CRM in a Market-Oriented Business
By now, you can probably see why customer relationship management is so important in market orientation. But, you might still not be sure why you should take a market-oriented approach and use CRM software.
We know that investing in CRM software is not cheap, especially for small- businesses.
So, take it slow and discover your own business goals first.
While you are discovering that, take a look at how CRM software can benefit your business growth.
- Improved Customer Satisfaction: When we truly understand our customers, we can meet their needs more effectively. This leads to happier customers who are more likely to stick around.
- Increased Customer Lifetime Value: By nurturing relationships over time, we can increase the total value each customer brings to our business.
- More Effective Marketing: With detailed customer data at our fingertips, we can create more targeted, relevant marketing campaigns.
- Better Product Development: Customer feedback and behaviour patterns can inform product improvements and new offerings.
- Enhanced Decision Making: Data-driven insights help us make more informed business decisions across the board.
- Competitive Advantage: In a world where products are often similar, superior customer relationships can be a key differentiator.
All of these benefits can be amplified if you integrate your software stack. This issue may arise in businesses such as managed software providers.
Most managed software providers may already use professional service automation (PSA) software in their businesses.
However, PSA software can only handle basic functions such as project management and time tracking. So how do you implement a market-oriented business approach with that?
That’s where CRM integration comes into place.
With the help of an integration expert like Nexalab, you can integrate CRM with PSA software so that you can have a more comprehensive view of your customers and projects, leading to better decision-making and improved customer satisfaction.
More on Nexalab’s blog: What Are the Capabilities of a Customer Relationship Management (CRM) Platform?
Conclusion
In other words, it simply means that the management of customer relationships is not just important but very critical to market orientation. We must be adept at using CRM as a tool for sharpening customer orientation, competitor awareness, and cross-functional coordination.
It is what makes an organisation truly market-oriented. Such an approach does not only bring in happier customers but also lays down a clear pathway towards sustainable growth and success within a steadily competitive market setting.
Investing in CRM software is a smart move for any business looking to improve sales, marketing, and customer service. But to get the most out of your CRM, it needs to work with your other tools.
Nexalab’s App Integration Services can help you connect your CRM with other essential platforms, like PSA software, for example. This means you get a complete view of your customer data, automate repetitive tasks, and personalise your customer interactions. It’s a solution that helps you get the most out of your CRM investment. Contact Nexalab today to explore how App Fusion can drive your business forward.
