What is Customer Relationship Management (CRM)?
Customer Relationship Management is a process of managing the relationship between business & customers. It is a technique used by businesses to create better & long term relations with customers.
CRM is one of the important method used nowadays to increase the customer base. It helps in getting all the required information from target customers easily. The information collected helps in understanding the customer’s behaviour.
After understanding customer’s behaviour, they are treated accordingly. Business are able to provide better service & satisfaction to its customers because of CRM. Business is successful if it is able to satisfy its customers properly. For using customer relationship management technique, businesses use several CRM software.
This software collects all required data from different customers. The information collected is integrated & stored in a single CRM database. These databases are then used by the businesses for taking information.
Functions of Customer Relationship Management (CRM)
Customer Relationship Management performs wide range of functions for the business. Some of these functions are discussed below:
Acquiring & Storing Information
It is one of the most important function performed by CRM. It collects & stores information about target customers from the market. The information collected is stored on databases centrally.
This data can be easily accessed anytime from anywhere. Information collected is used by businesses to understand their customer’s behaviour. This will eventually help in providing better satisfaction to customers.
Management of customers is important task performed by CRM. It divides & groups all customers into different groups as per their behaviour & nature. Segmenting of customers helps in serving them better.
Customers will be treated differently according to their groups. This will improve the relationship with customers. Customers are happy & satisfied when are treated properly.
Management of Marketing Policies
It is concerned with personalizing of marketing programs of businesses. It aims at designing marketing strategies as per the needs of different customers. Attempts are made to attract more & more customers.
Salespersons are trained properly according to information acquired. Opportunities that can grab new customers are included in marketing strategies.
Customer Relationship Management aims to increase sales & profit of the business. It helps in increasing business with existing customers as well as new customers. CRM focuses on Cross-selling & Up-selling techniques to increase its sales with existing customers.
Once customers are satisfied & happy with business, cross-selling & upselling are effective in increasing business with them. Customers start believing in particular brand & try its different products.
Proper Communication Network
Providing good customer support is an important function performed by CRM. It aims at providing fast & best customer support. A proper channel is developed to handle all the problems & queries of customers.
Customers can easily contact the agents & get their issues resolved. Agents are required to keep a record of each & every interaction with customers.
Cost-saving is one of great challenge in front of any business. Business is successful if it is able to provide better quality products at less cost. Customer Relationship Management reduces the expenses of business by minimising the paperwork involved.
All data is stored digitally on a database centrally. Also, it reduces the manpower requirement for business. It overall brings down the cost & increase the profit margin.
Customer Relationship Management aims at increasing the product quality of businesses. The information acquired through the CRM technique helps in better understanding the needs of customers. This information is then used for customizing the offerings of businesses to customers.
Products & services are customized as per people needs. This helps in making customers happy & properly satisfied. It also ensures whether the product is meeting the minimum quality standard level.