Communication Gap Getting a new customer cost 5 times then retaining existing customer Not a single point of contact 1% increase in sale with existing customer will boost profit by 17% while 3% in other case
The idea behind CRM to gain insight into the behavior of customers and the values of those customers. If it works as hoped then business can :-
Provide better customer services Make call center more efficient Cross sell product more effectively Helps sales staff close deals faster Simplify marketing & sales process Discover new customers Increase customer revenue
Operational CRM which provides support to front office, business processes including sales, marketing and service. Operational CRM processes customer data for a variety of purposes:
Enterprise Marketing Automation
Sales Force Automation
Sales Management System
Analytical CRM which analyses the customer data for various purposes such as design and execution of targeted marketing campaigns to optimize marketing effectiveness, design and execution of specific customer campaign, analysis of customer behavior to aid product and service decision making, management decision, prediction of probability of customer defection.
Consumer Relationship CRM covers aspects of a company's dealing with customers handled by the Consumer Affairs and Customer Relations contact centers within a company. Representatives handle in-bound contact from anonymous consumers and customers.
Sales Intelligence CRM is similar to Analytical CRM, but is intended as a more direct sales tool. Features include alerts sent to sales staff regarding:
Collaborative CRM covers aspects of a company's dealings with customers that are handled by various departments within a company, such as sales, technical support and marketing. Collaborative CRM's ultimate goal is to use information collected by all departments to improve the quality of services provided by the company.
Campaign Management combines elements of Operational and Analytical CRM. Campaign management functions include:
Target groups formed from the client base according to selected criteria
Sending campaign-related material (e.g. on special offers) to selected recipients using various channels (e.g. e-mail, telephone, SMS, post)
Tracking, storing, and analyzing campaign statistics, including tracking responses and analyzing trends
CRM is an IT-enabled business strategy, the outcomes of which optimize profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviors and implementing customer-centric processes. - Gartner Group
“ CRM is a business strategy to select and manage customers to optimize long – term value” – CRMGuru.Com
"CRM is an enterprise – wide mindset, mantra and set of business processes and policies that are designed to acquire, retain and service customers. - Scott Fletcher, VP, i2.