Customer Relationship Management - OverviewCustomer Relationship Management (CRM), also known as relationshipmarketing or customer management, is an information technologyindustry term for the methodologies, strategies, software, and other web-based capabilities used to help an enterprise organize and managecustomer relationships. The goal of CRM is to aid organizations in betterunderstanding each customers value to the company, while improvingthe efficiency and effectiveness of communication. CRM captures,analyzes, and distributes all relevant data from customer and prospectinteractions to everyone in the organization. This distribution ofinformation helps an organization better meet customer, product, andservice needs.CRM has replaced traditional marketing techniques that focused on keymarketing mix elements, such as product, price, promotion and place. Bybeing too functionally-based, traditional marketing techniques neglectedthe customer in the after-sales process and failed to meet customersdesires. CRM emphasizes customer retention over customer acquisitionand is recognized as one of the most viable tools used to further acompanys success in the highly competitive business world.There are three major areas that focus on customer satisfaction: sales,marketing, and service. The functionality of and between these threefields is essential to successfully connecting a companys front and backoffices to facilitate effective, enterprise-wide coordination. Theprofessional sales force predicts and proposes the real-time analysis ofinformation and distributes this information to the company and businesspartners. Marketing concentrates on personalizing customer preferencesand offering them satisfying experiences. Service is associated with the
companies call centers and coordinates interaction between Web, e-mail,and other communication medias. These fields are developed further withthe help of CRM automation. Definition Customer relationship management is a broadly recognized,widely-implemented strategy for managing and nurturing a company’sinteractions with customers and sales prospects. It involves usingtechnology to organize, automate, and synchronize business processes—principally sales related activities, but also those for marketing, customerservice, and technical support. The overall goals are to find, attract, andwin new customers, nurture and retain those the company already has,entice former customers back into the fold, and reduce the costs ofmarketing and customer service.
BenefitsCustomer relationship management tools have been shown to helpcompanies attain these objectives Streamlined sales and marketing processes Higher sales productivity Added cross-selling and up-selling opportunities Improved customer service, loyalty, and retention Increased call center efficiency Higher close rates Better customer profiling and targeting Reduced expenses Increased market share Higher overall profitability