Customer relationship management (CRM) is a business strategy to select and manage most valuable customer relations. Consumers are the most valuable resource and heart of the business. The process of using and developing strategies based on customer information is the main aspect of this concept.
The ability to access the end users can determine how well you understand and use this resource in the business goals and strategies. Business strategy is the proper application of the information that uses the resources in the most efficient and economical manner.
One of the challenges faced by successful business is to build consumer confidence. While recruiting employees, there is a tendency to concentrate more on functional expertise, technical competence, and knowledge rather than interpersonal or communication skills. Client satisfaction levels have a reverse effect because of lack of right attitude.
In today's competitive world, it has become more important to maintain rich and fruitful relationships. CRM is a corporate level strategy, focusing on creating and maintaining relationships with customers. This is not only used by the business organizations but also in any organization to create a beneficial environment for all.
This is a business approach that combines people, processes, and technology to maximize the relation of an organization with all types of customers. It helps in understanding them better and according to their needs; the organization can effectively customize their products and services, in order to retain them and also to increase loyalty among them.
It is a path to identify, acquire, and retain customers who are the business' greatest assets. It gets the value out of them by highly integrating sales, marketing, and support efforts.
By providing the means to manage and coordinate customer interactions, the technology helps companies to maximize the value of every such interaction and in turn, drive improved corporate performance.
A suitable software application can enable effective CRM, provided that an enterprise has the right leadership, strategy, and culture. Its commerce-enabled applications help the organizations to interact with consumers through all media and channels.
CRM products and services manage every point of contact with each of them to ensure that they get the appropriate level of service and no sales opportunities are lost. An organization can improve the business processes and technology solutions around selling, marketing, and service functions across all customer touch-points by implementing this strategy.
CRM is a four-step process that includes: implementing customer-centered strategies, driving redefining of functional roles, demanding re-engineering work processes, and supporting with CRM technology.
- To help an enterprise to enable its marketing department to identify and target their best customers, to manage marketing campaigns with clear goals and objectives, and to generate quality leads for the sales team.
- To allow the formation of individualized relationships with customers, with the aim of improving the satisfaction quotient and maximizing profit.
- To provide employees with the information and processes necessary to know their customers' need and build strong relations over time.
Types of CRM
It provides support to front-office business processes including sales, marketing, and service.
It analyzes 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, behavior analysis to aid product and service decision-making, management decision, and prediction of probability of customer attrition (defection).