Customer relationship management, also called CRM is a business strategy that helps companies in obtaining a real-time substantial view of every customer, thereby attaining tangible customer loyalty that in turn helps in cutting down cost and increasing profits.
CRM, in the true sense, works by assimilating information from all possible sources where data are available, be it from within or outside the organization.
This gives a broad view of the needs of every customer.
It becomes handy and effective in a speedy decision-making for employees who come face to face with customers in the field, such as sales, customer support, as well as marketing personnel.
In this way, the company can handle anything from cross selling to up-selling opportunities to focus on the strategies in marketing, and gain a competitive edge in the tactics of marketing.
CRM has evolved from its primitive image of a form of software into a sound philosophy with the customer, and infuses the principle into the entire organization.
People, processes and technology form the three pillars of a successful CRM initiative.
It is essential that every strata of the company from CEO to every customer service representative believes in it, and at the same time supports CRM.
Re-tailoring the business processes within a company is indispensable.
It gives an impetus to the CRM venture, keeping in mind the way to use the CRM, and provide a better service to the customer.
The firm must choose the apt technology to work on these advanced processes, provide the employees with the best information and at the same time keep it as simple as possible to avoid resentment.
The solid stability of the CRM structure depends on the sole integrity of each of its three pillars.
Customer friendly initiative: Create a better, more social customer experience.
Learn how, by referring to social Customer Service guides.
The success of any business largely rests upon its strong customer relationships.
To build on these relationships CRM should understand customer's needs and behavior.
Although CRM includes a host of technological elements, many think of it as a better process that unifies the data about sales, customers, responsiveness, marketing effectiveness and market trends.
If we say that Customer relationship is the heart of any business prosperity, which inevitably means that CRM is the lifeblood of a company.
Thus, CRM is the best strategy in attaining a better perception of the behavior and value of customers using people, processes and technology that helps in upgrading customer service, more efficient functioning of call-centers, augmented cross-sell and up-sell opportunities, better customer friendly rates, smooth and well-organized sales and market research and marketing.
In a broader sense, identifying the right customer and exploring their needs increases customer share, brings down the cost and at large increases profitability.
CRM is no catholicon, although it might sound like one.
It comes with its own challenges.
For an effective CRM, the staff of an organization should imbibe the sound truth that 'Renaissance is for the better and that CRM will herald improvement.
' In order to pinpoint the business processes that require re-engineering, these processes have to undergo analysis by the CRM.
Decisions pertaining to the customer's relevant data and the methods of using the same need subsequent determination.
Ultimately, a well-chosen team of executives must select the appropriate technology that needs automation and carry out the same.
Depending upon the magnitude of the company and the dimensions of the data, the company may need weeks to years to complete this process.
Internet-based CRM technologies are may cost firms only hundreds of dollars per month per user, while multinational companies have to shell out millions to own, install and customize the CRM initiative supporting technology.