Customer relationship management, the word itself explains it all. CRM aids in the process of building a strong customer base through good customer relationships. Businesses try their best to maintain loyal customers as good CRM leads to more revenue. Eventually leading to a profitable business. CRM is important for every firm and as IT has increased competition and communication; improved customer relationship management software’s’ are brought into the business world to improve competence levels. For firms that aim to build a customer-centric organization, CRM is the key. Most successful firms in today’s time tend to keep this; as one of their main missions as it is understood how significant customer satisfaction is.
What does the CRM software do?
This system can track the number of previous and potential customers interacting online. It also provides management with tracking information and other automated tools to help them measure an organization’s performance and productivity.
CRM enables a firm to :
- Offer improved customer service
- Make call centers more competent
- Cross-sell products more successfully
- Aids sales staff close deals sooner
- Make things easier with marketing processes
- Discover new customers quicker
- Increase revenues
Operational CRM and Analytical CRM
Where direct dealing with customers takes place. Thus, this the traditional approach of customer relationship management; where front-office operations take place.
Where there is no direct dealing with customers. Thus, where all back-office operations and dealings take place along with strategic analysis.
Now let’s talk about
The Evolution of customer relationship management
The reporting technology
This evolution in CRM; thanks to tech helps firms recognize their clients across other applications that they are using.
The analyzing technology
This aids the firms to segment their customers into groups or classes such as the best or worst customers.
The predicting technology
Helps organizations in making forecasts concerning consumer behavior. Such as which customers are most satisfied and which customers are at the risk of leaving.
How IT has improved CRM in different business departments:
The list generator- this allows firms to gather and segment customer information; and further allot them different marketing campaigns. Making marketing more personalized and efficient; thanks to easier market research due to technology.
Cross-selling and up-selling- As a result of the CRM technologies, firms now sell value-added products as well as additional products.
Campaign management system- a guide for customers towards advertising campaigns, making their buying easier.
One of the first departments of an organization to implement CRM is the sales department. This was through the sales force automation; a system that can automatically track and monitor all the steps in a sale process.
Customer relationship management allows firms to value their customer’s time while they receive their attention; and contact frequently thus, creating greater trust and value; along with regular follow-ups for repeating purchases.
The most important and main role to play is through this after the sale has been made and even before.
Though the call center, web-based-self-service system (such as click 1 to talk), and the call scripting system; businesses make use of CRM and its advancements with tech to build a strong bond with their customers.
Pros of IT in CRM
- It helps to build an improved relationship with the traditional customer along with building relationships with online customers.
- A global market is available thus increasing the amount of services one can provide
- Better market research and personalization
- Leading to greater customer satisfaction and more profits for the firm.
Cons of IT in CRM
- Less of personal interaction
- Huge start-up cost
- Waste of time and money if research goes wrong
- Privacy threats to customers in loads of ways
We understand that customer relationship management systems have their pros and cons; but the influence of CRM is massive in the business function. Thus, putting a light on how it is growing and will be growing in the future; as it is a tool for efficiency, improved productivity, and saving costs in the long run.
Watch an interesting video to learn more about CRM here.