CRM is a business strategy that focuses on creating value for customers through acquiring, retaining and partnering with selective customers. It involves using technology to learn about customer behavior and requirements to develop long-term, mutually beneficial relationships. The goals of CRM are to better understand customer needs, customize offerings and services, optimize sales processes, increase retention through improved support, and identify cross-selling opportunities.
CRM is a business strategy that focuses on creating value for customers through acquiring, retaining and partnering with selective customers. It involves using technology to learn about customer behavior and requirements to develop long-term, mutually beneficial relationships. The goals of CRM are to better understand customer needs, customize offerings and services, optimize sales processes, increase retention through improved support, and identify cross-selling opportunities.
CRM is a business strategy that focuses on creating value for customers through acquiring, retaining and partnering with selective customers. It involves using technology to learn about customer behavior and requirements to develop long-term, mutually beneficial relationships. The goals of CRM are to better understand customer needs, customize offerings and services, optimize sales processes, increase retention through improved support, and identify cross-selling opportunities.
Customer Relationship Management (CRM) is a comprehensive strategy and process
of acquiring, retaining and partnering with selective customers to create superior value and strong relationship with customers. A commonly cited definition of CRM is that of CRM (UK) Ltd (2002), as follows: Customer Relationship Management is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and organizations CRM is neither a product, nor service but a business strategy to learn m o r e a b o u t customer behavior and requirements in order to create long term relation with them. CRM involves use of technology in attracting new and profitable customers while retaining the existing ones.
The purpose of CRM
The focus [of CRM] is on creating value for the customer and the company over the longer term. When customers value the customer service that they receive from suppliers, they are less likely to look to alternative suppliers for their needs. CRM enables organizations to gain competitive advantage over competitors that supply similar products or services. Needs / Objectives of CRM: 1. Enable the company to identify, attract and acquire new customers: CRM allows the company to focus its limited marketing resources on the most promising target markets with the highest value. This is usually done by using the information generated by CRM application which:a) Automatically generates customer and market profiles b) Identify and target market with high revenues c) Generates, leads, tracks marketing campaigns across a variety of media d) Selects appropriate contact media, plans promotions and incentives e) Manages the proposal process through negotiations to close. 2. Obtains a better understanding of the customers- their wants and needs C RM applications, often us ed in combination with, e-commerce applications and call centers, allow companies to gather and access information about cus tomers bu ying behavior, w ants in terms of products or s ervices provided b y the company. 3. Defines the appropriate product and service offering and match it to the unique needs of the customer:
CRM provides customization and personalization capabilities that gives customers
the power to view the enterprise in a way that they can relate to, thereby making it easier for them to do business with it. 4. Manages and optimizes companys sales cycle: CRM solutions also include tools, which provide the ability to communicate important information from supply chain modules to the customer interface in real time. These tools can help in determining feasibility, profitability and delivery dates, while understanding the constraints of the entire supply production and logistics chain across multiple channels and enterprises. 5. Increases retention of existing customers through improved sales, service and support: CRM applications document all post close service and support related interaction with customers, record customer requests and collect feedback from variety of communication channels and use the information to anticipate the demand for s ervice and technical assistance and maximize customer satisfaction and retention. The goal is to ensure greater customer loyalty. 6. Identifies Cross selling and up selling opportunities: CRM can help in identifying opportunities for cross selling and up selling of higher value added services to the existing customers, based on their past purchasing behavior.