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Customer Relationship Management or CRM refers to the methodologies and tools that help businesses manage customer relationships in an organized way. The main objective is to learn more about the needs and behavior of customers. It helps to build stronger relationships with them. There are technological terms involved in CRM. But, thinking of it primarily in technological terms is a mistake.
CRM is all about how far a company is able to meet the needs of its customers. Its not a program which when implemented guarantees higher sales. Its about creating a system which is implemented to gain an insight into customers’ needs and the value of those customers.
When already in a company if there is a customer relations department, then automating this process will yield good results.
Benefits of a CRM Program
- Streamlined sales and marketing processes
- Higher sales productivity
- Added cross-selling and up-selling opportunities
- Improved service, loyalty and retention
- Increased customer support efficiency
- Higher close rates
- Better profiling and targeting of customers
- Reduced expenses
- Increased market share
- Higher overall profitability
- Marginal costing
Types and variations
- Sales force automation: This provides an array of capabilities to streamline all phases of the sales process, minimizing the time that sales representatives need to spend on manual entry and administration. This allows them to successfully pursue more clients in a shorter period which otherwise would not be possible.
- Marketing: Systems for marketing help the enterprise identify and target its best clients and generate qualified leads for the sales team. A key marketing capability is tracking and measuring multichannel campaigns, including emails, search, social media and direct mail.
- Customer service and support: Recognizing that service is what makes the difference, many organizations are increasingly turning to technology platforms to help them improve their clients’ experience while aiming to increase efficiency and minimize costs. The services include Computer Telephone Integration or CTI and Interactive Voice Response or IVR.
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