Customer Relationship Management (CRM)
CRM is defined as a business strategy which is designed to reduce cost and increase profit for both current and potential customer inorder to build relationship value. It mainly focuses on customers needs and behaviour in order to develop a close relationship between customer & business model.
In other words Customer Relationship Management refers to the practice, strategy and technology that a company uses to manage and analyse customer interaction with an objective to improve business relationship with customer.
Features / Characteristics Of CRM
For the sake of clarification some of the importance features of Customer Relationship Management are discussed below:
The success of business activity largely depends upon the customer’s needs. It enables one to know about the customers liking & dislikings so that currentive action can be taken to solve customers needs and maintain a long term relationship with them.
Another important feature of CRM is customer satisfaction. Generally it is believed that more customer satisfaction leads to more business. So, it always try satisfy the customers needs and requirements for their satisfaction.
It refers to the tendency of customers to remain in business with a particular supplier and brand. It is only possible when a customer is very much satisfied with the supplier.
Retention Of Customer
Relation of customers with a business is considered as another characteristic of CRM. It refers to the process adopted to retain the existing customer with our business to not allow them carry on their business to other suppliers.
Customer Satisfaction depends upon the quality of service provided to him by the organisation. It refers to the process of delivery of information & services regarding the product and brand when demanded by customers.
Customer Relationship Management also deals with complaints raised by customers in every business. Generally it indicates the act of dis-satisfaction of customers on the service and quality of product provided in the organisation.
Importance or Advantages Of Customer Relationship Management (CRM)
Acquisition of customer
The CRM system enables the acquisition of customers. It helps in reducing searching of customers and household needs of customers sufficiently. It also helps in increasing the business to its maximum.
Track the Customer
CRM serves as a watchdog that enables them to acquire detailed information about their customer in each and every moment. So, it helps an organisation to decide which customer is profitable for business and which is none.
Grouping the customer
CRM systems enable the group of customers according to the different aspects. It helps an organisation in focusing & concentrating for each every customer separately for their satisfaction such aspects are:
- Physical Location
- Likings of Customer
- Nature Of Customer etc.
The technology used in the implementation of the CRM system is very cheap as compared to the traditional system. So it is grouped as cost effective and reduces paper and manual work to a large extent.
Reduce the process time
Another important feature of a CRM system is that it reduces the process time. It means the detailed information about a customer is available at any time on fingertips so it reduces and increases productivity.
CRM increases the enhancement of getting more business that indirectly enhances turnover and profit. It enables them to deal with customers and provide them with their requirements in order to be satisfied. It also helps in increasing goodwill & reputation of the organisation.
Opportunity of business
CRM systems not only deal with existing customers but also are useful in acquiring new customers. So, it is called an opportunity for business and enables them to increase sales volume by acquiring new customers with regular touch and innocent dealings.
- CRM is a strategy used by businesses to interact with customers.
- CRM’s goal is to develop customer satisfaction & loyalty, increase profit & sales.
- It collects & analyses the customer data from sales, marketing, customer service and social media for knowing better customers needs.
- A professional person manages all the interaction between a business or customers known as a CRM a Manager.
What Are Customer Relationship Management Strategies
CRM system strategies helpful for the business model for better interaction between customer & business model.
Some benefits of implementing of CRM strategy in business model are pointed below:
- Increase efficiency & productivity
- Improve customer satisfaction & loyalty.
- Enhance Collaboration between departments.
- Better insights into customer behaviour & preferences.
- It increases sales & marketing campaigns.
- It increases revenue & profitability of business.
Customer Relationship Manager
A Customer Relationship Manager is a professional person who is responsible for managing the interactions between a company and its customers. He/she also aims to increase the customer satisfaction, loyalty, base and retention towards the company.
The Customer Relationship Manager is also responsible for building a strong bonding between customer & company. Some of important responsibilities of CRM, Manager are pointed below:
- Manage Customer Data
- Implement CRM strategies
- Build Customer Relationship
- Coordinate with different departments
- Analyse the customer interaction & behaviour