Customer-relationship management (CRM)

Updated: May 29, 2021

Customer-relationship management (CRM) Customer relationship management was popularized in 1997, due to the work of Siebel, Gartner, and IBM Every good company want to provide excellent customer service. The four largest vendors with CRM system offerings are Salesforce, SAP, Oracle and Microsoft, which represented 42 percent of the market in 2015 To provide excellent customer service it is important to understand the customer. “The Customer is never wrong” is an approach the company’s like to adopt in order to satisfy the customer. One of the best ways to manage a company's interaction with the customer is to not tell the customer what they want rather the company should have constant interactions and meetings and find out their needs and requirements. This is the best way a company can hold on to their current and potential customers. Customers have a lot of choices and providing them with what they want will only benefit the company in the long run. The customer-client relationship is very important. Assuming and categorizing “what?” a client wants will be a big mistake. Communicate with an open mind with your client. If you assume that you know your client inside-out, it will be your biggest mistake. Remember one thing while dealing with the customer, they have a lot of options in the market and since you have got this opportunity with them don’t blow it. Listen to them, understand them and deliver what they want. That should be the simple rule in CRM. The main factors of CRM are building and managing customer relationships. This can only be done by a company if you appreciate the customers. The company needs to treat them well and bear in mind that they need to have a long-lasting relationship with their customers. Managing these relationships at each stage might be a difficult process, but the company and its service team should do everything in their capacity to keep the customer satisfied and recognizing the value of a relationship to the firm. When building and managing customer relationships through marketing, firms might benefit from using a variety of tools to help organizational design, incentive schemes, customer structures, and more to optimize the reach of its marketing campaigns. Through the acknowledgement of the distinct phases of CRM, businesses will be able to benefit from seeing the interaction of multiple relationships as connected transactions. The final factor of CRM highlights the importance of CRM through accounting for the profitability of customer relationships. Through studying the particular spending habits of customers, a firm may be able to dedicate different resources and amounts of attention to different types of consumers

CRM uses data analysis about customers' history with a company to improve business relationships with customers, specifically focusing on retaining a customer and ultimately driving sales growth. The primary goal of customer relationship management systems is to integrate and coordinaate sales, marketing, and customer support. One important aspect of the CRM approach is the systems of CRM that compile data from a range of different communication channels, including a company's website, telephone, email, live chat, marketing materials and more recently, social media. CRM systems analyzes the customer data collected through multiple sources which help the project managers to make more informed decisions. CRM systems uses different techniques such as data mining, correlation, and pattern recognition to analyze the customer data. These analysis helps improve customer relationships and it also helps in error management. Customer behavior is also an important part of CRM. The business analyst after studying the customers pattern will be able to get a better understanding of the company’s product. Through the CRM approach and the systems used to facilitate it, businesses learn more about their target audiences and how to best cater to their needs. CRM systems helps to understand the customer’s external stakeholders such as suppliers, vendors, and distributors. This information is shared only across groups/departments within the organization. The business analyst can call these suppliers, vendors and distributors and get the required feedback which could help provide direction for marketing products and services to that customer in the future.

Splitting CRM providers into different categories (Enterprise CRM Suite, Business Intelligence, Mid-market CRM Suite, Small-Business CRM Suite, sales force automation, data quality, incentive management, marketing solutions, consultancies), helps have a better focus on them.

A customer Data Platform (CDP) is a computer system used by marketing departments that assembles data about individual persons from various resources into one database. As of February 2017, there were about twenty companies selling such systems and revenue for them was around US$300 million.

CRM systems include:

Data Warehouse technology which is a computing system. and is also known as enterprise data warehouse (EDW). This system is used for reporting and data analysis, and is considered a core component of business analysis. DWs are warehouses of combined information and statistics from one or more unrelated sources. Information is stored here is extremely relevant to the company and it could be current as well as past data of the customer in chronological order. Business analysts create reports for projects based on the data stored in the data ware house. The data stored in the warehouse is uploaded from the company’s operational systems. Before the data is extracted the data may require data cleansing to ensure good data quality before it is used in the DW for reporting.

· Opportunity management is a process which helps the companies or communities develop their business opportunities. All organizations have limited resources and it is important that they are used prudently. Opportunity management is a collaborative approach for economic and business development. Opportunity management helps the company to manage unpredictable growth and demand. The business analyst can implement a forecasting model to integrate sales history with sales projections. The process focuses on tangible outcomes. An opportunity management process has required elements that need to be evaluated before advancing and allocating scarce resources to any project.

Customer benefits

Customer relationship management systems help serve customer better on day to day basis.

Customer Satisfaction level increases which benefits the company’s relationship, value and brand. CRM provides the companies with the following main benefits:

Ability to target valuable customers.

Personalizing Customer service combined effort to improve team members and customer relationships increase the stability of the customers by providing customer satisfaction and maintain strong and long-lasting relationship with the customer.

Enhanced knowledge about customer’s preferences, customer situation’s, requirements and demands.

Categorizing customer’s as per their resources, requirements and demands.

Better business and market analysis

Improved efficiency and effectiveness

Improved pricing and budget control,

Better allocation of resources

Customized products and services

Individualized marketing to satisfy client needs

Connect customers and all departments and services on a single platform.

CRM helps save time, since the company and the customer are frequently in discussion both are well connected on a day-to-day basis and are up-to-date with the latest status of the project. CRM has increased profits across multiple industries.

5 views0 comments

Recent Posts

See All

Templates are standard document outlines which makes the process of creation of documents less complicated. Templates describe the essential structure of components required in the compilation of the

Sharing a product knowledge through teamwork increases communication between the team and helps in understanding the product. A product knowledge can be in the form of user manuals, procedure guides,