What is CRM (customer relationship management)?

CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprisemanage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. According to one industry view, CRM consists of:

Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns and generate quality leads for the sales team. Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices) Allowing the formation of individualized relationships with customers, with the aim of improving customer satisfaction and maximizing profits; identifying the most profitable customers and providing them the highest level of service. Providing employees with the information and processes necessary to know their customers, understand and identify customer needs and effectively build relationships between the company, its customer base, and distribution partners. Many organizations turn to CRM software to help them manage their customer relationships. CRM technology is offered on-premise, on-demand or through Software as a Service

Selling has always been the vital force in carving the economic development of any company. Aptly described, "the development of selling has been from 'hawkers and walkers' to a burdensome role imposed by the aggressive marketing regimes introduced by the large, bureaucratically managed companies." - Roy Church More so in the present world, where competition and fast track culture dominates the market place, selling is a real challenge. Today, selling or even marketing means a lot more than what the dictionary defines it as ' the exchange of goods for an agreed sum of money'. Both for selling as well as for marketing, one must have knowledge of everything - leads, queries, customers, sales, feedback, relationship, requirement and so on. Similarly, the advent of technology has brought about an apparent change in the organizations' approach to customer relationship. And technological advances have brought more of company's relationships to be managed through electronic means. There is a need created for companies to automate services and personalize communication with customers. The need primarily is about having an application or a system in place to effectively manage

the sales process and customer relationship; capture vital data and information about customers purchase history, revenue generated, up selling / cross selling opportunities, etc.; and generate sales quote or create orders. To be precise, the need of the hour is to have a 360-degree view of ones business. This is why the Customer Relationship Management has gained so much popularity among all businesses. An acronym for Customer Relationship Management, CRM is a term originally defined and designed to improve customer service. Today it almost relates to an entire business strategy. So while the term refers to a systematic approach to handling customer relationships, it transforms into providing holistic approach to a business strategy. Customer refers to an entity that acquires or consumes goods or services from a desired firm (through the process of purchasing or renting) for a mutually decided price and has the ability to choose between different products and suppliers. In this sense a customer is also known as client, buyer, purchaser or user of the products/services delivered or provided by a firm or organization also called the supplier, seller or the service provider. Relationship in business refers to a state involving mutual dealings between people or parties. It involves interactions with customers or prospects to better understand their requirements and to build an expectation through different channels of communication. The more one interacts, the more chances of building a strong business relationship on the grounds of proper understanding of customers. Management refers to managing of customer interactions. This does not merely mean customer support but in its true sense aims at mobilizing the entire organization towards management of all interactions with the customers, thus involving a customer-centric thinking and acting. Essentially CRM works by collecting leads or consumer information. Analyzing the collected information to understand customer or market requirements. Adjusting marketing campaigns accordingly to increase sales. CRM also serves for customer service and support--making businesses efficient and improve customer satisfaction.

How CRM Benefits your Business?

CRM is often misunderstood as an application or a tool, but in the real sense of the term it is a way of doing business. There can be innumerable reasons for businesses to implement CRM. However, let's take a look at few of the most apparent benefits of using CRM. 360 degree view of business Organizational-level data sharing

Reduce cost on customer acquisition Centralized customer interaction Improved customer support Increase customer satisfaction High rate of customer retention Boost new business Increase revenue at low cost

Thus CRM is becoming increasingly important among businesses. With an ever increasing customer expectation there is a need for organizations to adopt new business services and strategies - CRM provides this versatility in enhancing sales, customer support and success in business.

CRM is the abbreviation for customer relationship management. CRM entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. CRM is often thought of as a business strategy that enables businesses to:

Understand the customer Retain customers through better customer experience Attract new customer Win new clients and contractsIncrease profitably Decrease customer management costs

While the phrase customer relationship management is most commonly used to describe a business-customer relationship, however CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads. CRM solutions provide you with the customer business data to help you provide services or products that your customers want, provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and understand who the customer is. Technology and the Web has changed the way companies approach CRM strategies because advances in technology have also changed consumer buying behavior and offers new ways for companies to communicate with customers and collect data about them. With each new advance in technology -- especially the proliferation of selfservice channels like the Web and smartphones -- customer relationships is being managed electronically. Many aspects of CRM relies heavily on technology; however the strategies and processes of a good CRM system will collect, manage and link information about the customer with the goal of letting you market and sell services effectively. Organizations frequently looking for ways to personalize online experiences (a process also referred to as mass customization) through tools such as help-desk software, e-mail organizers and different types of enterprise applications.

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