Meaning of Customer Relationship Management
Customer Relationship Management is a technique of handling the relationship between customers. It is simply a technique of creating & improving relationship between customers & business. Nowadays Businesses are using these techniques to acquire & retain their customers.
It starts with understanding the nature of customers by acquiring information about them. After that customer is handled differently as per their behaviour. This will help in satisfying the customer in a better way. 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.
Importance of Customer Relationship Management
Proper understanding of customers
Customer Relationship Management is a customer-centric technique. The main focus of CRM technique is on the customers of Business. It helps businesses to acquire all required information of customers.
This information is then stored & used for understanding customer behaviour. After having a proper understanding of its customers business can serve its customers in a proper way. CRM helps businesses in satisfying customers in a more better way.
It not only focuses on serving & understanding existing customers of businesses. CRM aims at acquiring more & more customers for businesses. It targets to increase the customer base & retain them for the long term. Through CRM, a communication channel is developed between customers & businesses.
This way businesses acquire all information from customers. Customers are free to give their feedback & suggestions. It helps businesses in getting a clear idea of what customers want. Accordingly, businesses design their policies for acquiring new customers.
Cost-effective is one of the importance of CRM to business. It helps in reducing the cost involved in processes in many ways. Firstly it reduces all the paperwork involved in different processes. All data is stored digitally on the database.
Also, it reduce the manual work to be done in businesses. This leads to a decrease in the staff requirement for manual work. Overall CRM technique helps businesses in saving their cost.
Saves time & increase productivity
The CRM technique is quite smooth in performance. It Improves the performance of the business as compared to traditional mode. Here data are stored on database centrally at one place. Data in the database can be accessed anytime & from anywhere.
This saves the time involved in searching & getting the required information. Information when available quickly will help in taking action quickly. This increase the productivity of businesses.
Controls Customer defection rate
Retaining customers is one of the major challenges for every business. In today’s competition customers are more frequently shifting from one product to another. CRM helps businesses in retaining & maintaining long term relationships with their customers. CRM provides all information about the market to business.
A complete idea about customers’ needs & expectation from the market is acquired. This will help in serving them better. Customers when are served better to become loyal to a particular brand.
Helps in building corporate image
A good image in the market is a dream for every business. Well, reputed businesses enjoy several benefits in the market. Customers get easily attracted to there brands. A good image of the company also helps it in acquiring funds from the market. Image of business is created by its customers.
Customers when treated well & satisfied properly, they will definitely spread good word about the business. This will enhance the company image in the market. Through CRM, businesses are able to satisfy their customer in a better way.
Increase growth of Business
CRM has effective role in increasing the profits & turnover of the business. Through it, businesses increase their return on investment. CRM helps in creating more & more loyal customers for term.
These loyal customers do repeat purchases & increase the revenue of the business. Large revenues collected helps businesses in increasing their size. This way CRM helps in increasing the shareholders worth.