Customer relationship management (CRM) is a term applied to processes implemented by a company to handle its contact with its customers. CRM software is used to support these processes, storing information on current and prospective customers. It is a journey of strategic, process, organizational and technical change whereby a company seeks to better manage its own enterprise around customer behaviors. It entails acquiring and deploying knowledge about one’s customers and using this information across the various touch points to balance revenue and profits with maximum customer satisfaction.
The true value of CRM is to transform strategy, operational processes and business functions in order to retain customers and increase customer loyalty and profitability.
From the outside, customers interacting with a company perceive the business as a single entity, despite often interacting with a variety of employees in different roles and departments. CRM is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provides a mechanism for tracking customer information.
CRM includes many aspects which relate directly to one another:
- Front office operations — Direct interaction with customers.
- Back office operations — Operations that ultimately affect the activities of the front office
- Business relationships — Interaction with other companies and partners, such as suppliers/vendors and retail outlets/distributors, industry networks. This external network supports front and back office activities.
- Analysis — Key CRM data can be analyzed in order to plan target-marketing campaigns, conceive business strategies, and judge the success of CRM activities
- Building Relationship with the Customers.
CRM software helps organizations implement effective Customer Relationship Management (CRM).
CRM is not a software application itself, but is instead a strategy for doing business.
