CRM For Beginners – Customer Relationship Management Basics
In order to maintain a successful business, the business must understand and maintain a positive relationship with its customers..
Customer Relationship Management (CRM) is the process
of bringing the customer and the company closer together. There are many
different areas in which Customer Relationship Management can be
implemented. The goal of CRM is to help a company maintain current
customers, as well as gain new customers.
Targeted Marketing
Targeted marketing is accomplished through collecting information about the
customer. This information can be buying habits or simply demographics. The
idea behind this is that a business analyzes what a customer buys and then
markets specific products to that customer based on his or her buying
habits. Businesses track buying habits using discount cards, and special
store credit cards. Targeted marketing can also be implemented on the
Internet. Amazon.com has product recommendations based on buying habits, and
product ratings. Customers can also be sent e-mails that market targeted
products. Marketing the right products to the right customers can
significantly increase a business' sales with minimal associated costs.
Call Centers and Customer Service
Have you ever called a business to complain or ordered a product and
encountered an automated call response (I.E. “please press 1 for questions,
2 for comments” etc.)? That’s CRM. Call centers that take calls and monitor
customer/business interactions are often running on hosted CRM programs. CRM
managers want to make call centers as efficient and customer-friendly as
possible. A customer who can easily navigate through an automated system is
more likely to do business with the same company in the future. In the case
of a complaint, a customer whose problems are responded to immediately is
more likely to forgive and forget a company’s transgressions. Customer
service is the backbone of all CRM processes and strategies.
CRM Vendors
Not surprisingly, in order to successfully collect data, manage call centers,
analyze data, and make changes, businesses need CRM software. There are many
CRM vendors in the world. The most widely-recognized vendors are Siebel,
Salesforce.com, and Microsoft. Each of these vendors has contributed to CRM
in its own way.
CRM Applications
There are many different types of CRM applications. Some CRM applications
are Web-based so they can be accessed via a browser. Other CRM applications
have programs built in for integrating data entries and data management
across several applications. CRM vendors also have specific strategies that
are unique to every client. The goal of a CRM vendor is to not only upgrade
a company with the latest CRM technology, but also to design the companies
infrastructure in such a way that the customer/company relationship can
flourish.
Conclusion
Knowing the customer is the key to a successful business. Customer
Relationship Management is the process through which a business analyzes
their customers and makes changes accordingly. CRM vendors provide
applications and advice on the best CRM methods. Most observers believe that
CRM practices will continue to flourish as new CRM strategies and
technologies are developed. For any business, a successful CRM approach is a
must-have.
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