Companies and business organizations should have an organized and systematic approach to keeping its relationship with the customers. Apart from building a good business relationship, a company should also manage these customer relationships with the help of modern technology. Apparently, a structured and organized approach in dealing with any business transaction whether in person, through the phone or email is a plus to the company as it gives customers a positive impression of the way the business is dealt and managed.
Many business organizations in various industry sectors now use customer relationship management tools for a smoother business transaction with customers. Sales and marketing companies, customer-service based organizations, technical support, small and large businesses, and many other types of businesses in various levels benefit a lot from CRM.
This article mainly covers the practical working definition of CRM, the elements and scope of this business tool, how it impacts the business operations, and other related topics.
Defining Customer Relationship Management (CRM)
Customer service management (CRM) is a broad term used commonly in the information technology industry that encompasses the management of all stages and aspects of customer communication or customer interaction of a company including the gathering, storing, and analyzing of every customer’s information.
To make it easier to understand, one common example is the use of customer database where all details and information of customers are stored and kept for use in every transaction. The various departments within an organization such as sales, marketing, credit and collection, accounting, and the management can easily access stored information of a customer using the database for purposes of providing quick service, designing product offerings to customers, reminding them of service requirements, tracking back previous customer transactions, and many other functions.
The Phases of Customer Relationship-Building through CRM
As it is termed, CRM is geared toward building and enhancing the relationship between a company and its existing customers, including the potential customers. In the entirety of this relationship building, there are three stages that the company and the customers go through with the support and aid of CRM.
CRM can be a tool to use in gaining new customers and attract potential ones. This is possible through contact management, telesales, and fulfillment.
Customers find it very convenient to conduct business with quick and efficient staff and hassle-free transaction tools. The web-based types of CRM software caters to the processing of customer orders, payments, and other transactions coupled with impressive customer service tools.
Because CRM stores and analyzes customer information in the database, it becomes easy to track the most loyal and best customers. They can be aptly rewarded for valuing the business, which enhances the relationship of the company with these customers.
Advantages of CRM
A company mainly benefits from CRM through the following:
- Helping the sales and marketing team to determine and focus on the best customers, manage marketing and advertising programs, and generate the best leads for the sales representatives
- Identifying the worst customers aside from the most recognized ones, and applying strategies to turn them into good customers
- Measuring customer performance
- Assisting the business organization in enhancing telemarketing, account management, and sales monitoring by making it easier for multiple employees to access and utilize information as well as streamlining the current processes such as the use of mobile devices in inputting sales and customer orders
- Promoting customized and individualized customer relationships with the goal of developing customer satisfaction and increasing profits
- Helping the employees and representatives get to know their customers and easily identify their individual needs better through a quick access of information
There is no reason why a company should not take advantage of CRM for the growth of the business through better customer relationships. This is not only applicable and useful for large establishments and organizations. It is also beneficial to small-scale businesses. It is not just particularly designed for customer-service based companies but to any type of business that has a goal of acquiring more customers and maximizing the profits. CRM may even be understood as a strategy that helps in the planning aspect of the business in terms of growth and success.