What is Customer Relationship Management
This is a company strategy that is designed to reduce the costs to increase their profits. In a wider sense customer relation management brings together all the required data within the organization. This helps the firm in understanding customer’s needs, marketing needs and how to target marketing strategies to survive the stiff competition.
Customer relation management is primarily concerned in understanding the customers and their behavior. If this can be done then the relation between them will be bonded strongly. If customer relationship is considered as the heart of an organization, customer relation management is considered as the veins and blood vessels. If this strategy is understood correctly by an organization then it will help them to provide improved services to the customers.
Any organization using customer relation management tool has many advantages based on the features. An overview of these advantages as per different features is given below:
- Allows sharp business decisions keeping in mind customer insights.
- Increase marketing swiftness speeding up marketing activities
- Helps in having a control over the entire marketing processes.
- Enhances return on marketing funds.
- Focus on yield activity and maintains them as well.
- Helps in overcoming barriers to production
- Efficiency of sales is increased.
For customer relation management to be effective the organization must make their workforce understand that organizational development is necessary, hence a change will benefit everyone. The firm must decide upon what kind customer’s information is required and how that can be put to force. At last the organization must select staff that is competent enough to take the company through the required change and to automate the entire system. For any kind of automation to happen it depends on the number and size of the firm. Keeping this is mind the software for customer relation management can be designed.
Customer relation management can be of three types:
Operational CRM: this software application helps in having effective interface with the customers. This helps in providing customer with constant interface with all the communication channels. Here all the information about the customers like their hobbies, interests, preferences and details about their family is logged in.
Analytical CRM: here all the data that was collected by the operational CRM is analyzed. This is done to categorize the customers as per needs. Analytical CRM helps in getting solutions for questions for best customers, how to retain them, techniques for getting new customers etc.
Collaborative CRM: here the various departments of the organization work together in collecting and sharing information about the customers. The main objective of this type of CRM is to improve the quality and allegiance of customers.