What is CRM?

what is crm

Posted on May 4, 2014 in CRM

Customer relationship management (CRM) is a system for managing a company’s interactions with customers and tracking costs involved in using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support.

One of the things CRM is designed to do is track and measure marketing campaigns over multiple networks. Some of the places where CRM is used include call centers, social media, direct mail, data storage files, banks, and customer data queries.

A CRM system is a platform designed for progressing the payments and other related query management. The goal of the software is to track, record, store in databases, and then mine the information in a way that increases customer relations. This gives users the ability to focus their marketing and customer service for maximizing revenue and decreasing idle and unproductive contact with your customer. Software is installed in contact centres and this helps direct customers to the right agent or the website’s help section. CRM Software can also be used to identify and reward loyal customers over a period of time.

Almost all firms have adopted customer relationship management in their bid to build loyalty and retention, according to Ian Gordon of the Ivey Business Journal. Too often, however, a CRM policy is highly ineffectual. The problem is that a CRM program is developed as a stand-alone tactic, instead of being seen and developed as a strategy. Customer relationship management has yet to achieve the promise that has inspired many companies to make significant investments in the new technologies and processes.

Today, most managers believe that CRM is fundamentally important to the future of their business. It could very well be that the absence of a strategic plan is the single most important reason the company has yet realize the promise of CRM. It is really not surprising that this has occurred, as planning for CRM is uncharted territory for many firms.

Some of the things that should be considered for a good CRM strategy are: identify the best and the worst customers, distribute value differently to different customers, compete on scope, focus on strategic capabilities, win through customer-centric innovation, measure customer performance, unlearn and relearn, and redefine the focus and the new competition.

The old rules of marketing are totally inadequate in today’s business environment as there are only so many good customers to go around. Investing in a sound CRM strategy will assist you in the software implementation that can make your company succeed. And when you’re ready, inBOLD Business Solutions can help. Give our CRM software a try. It’s free for a single user and is scalable so that it can grow as your company grows.

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