Meaning & Process of Customer Relationship Management

Meaning of Customer Relationship Management

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.

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 customer base. It helps in getting all required information from target customers easily. The information collected helps in understanding the customer’s behaviour.

Process of Customer Relationship Management

CRM process needs to follow certain steps. These steps are discussed below:

Process of Customer Relationship Management
Process of Customer Relationship Management

Identify Target Market

The process of CRM technique starts with identifying its target customers. Firstly it recognises its customers in the market. It performs several researches to gather information about the customers.

Once the customers are identified it becomes easy to make strategies for them. Business is easily able to get an idea of demands in the market. They are able to get an idea of likes & dislikes of their customers.

Collect & Store Data

The next step in CRM technique is collection & storing of required data. CRM is not only concerned with searching for information but also properly storing it. Under CRM technique, there are several databases where information is stored.

The data stored in the database is centralized & can be easily accessed by anyone. This systematic collection & storage of data saves times & also increase the efficiency.

Proper Communication Channel

The next step in the CRM process is communicating & contacting your target customers. A proper communication channel should be developed to attract more & more customers.

It should be such that all required information is provided to the customers in short time. Attempts should be made to describe the company products in a better way. It is the duty of the marketing department to communicate with customers as per their interest.

Several complimentary & add-on products should be introduced to them to create long & good relation. Customers reviews & suggestions about the products should be taken.

Analysing the Sales Data

This is one of the important step in the CRM process. Under it, the data collected through sales & different customers is analysed. The data is analysed with the aim of making & attracting more profitable & loyal customers.

First of all, identify the most profitable & loyal customers. Then try to understand what thing they like in your products or what attracts them.

Several interviews of such customers should be conducted to understand them. This information collected should be used in attracting new customers in the same sector. It will help in understanding key points that a person sees when enters the market.

Provide Data to Staff

Now the next step is to make data accessible by all persons who are in the field. The information will help the people working in understanding their targets audience properly.

They will work in a better way to satisfy & attract more customers. If salesperson is able to access the data collected, it will help them to understand the people behaviour. Salesperson will implement this information while delivering their duties.

It will definitely improve the responsiveness of the customers to the business. Customers will interact in a more interesting way when are treated properly.

Personalise Interaction with Customers

The final step in CRM technique is to personalise your interaction with customers. Information collected is used to modify & correct the communication method. The communication channel is personalised as per customer behaviour to provide them better satisfaction.

If any customer has any complaint or problem, attempts should be made that it may not arise again. Customer problems should always be given top priority. This will help in long retention of customers.

If a customer is satisfied & happy with the business, it will bring more customers to business. A satisfied & happy customer will communicate to different people.

READ MORE:
Functions of Customer Relationship Management
Importance of Customer Relationship Management
Importance of Consumer Behaviour


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