What is Customer Relationship Management (CRM)?
Customer Relationship Management (CRM) is a multi-faceted business model for improving existing and new customer relationships, simplifying the management process and boosting profits. CRM uses cloud-based software as a tool for maintaining and tracking contacts with customers, in-house management teams, vendors and partners. CRM improves customer interactions using both technology and person to person contact. Business teams benefit from sharing information about customers, goods and services. With CRM, a business can check its own health by using current information to review all of its business relationships and solve any brand-related or operational problems. CRM reinforces a company’s ability to successfully adapt to change. That flexibility can lead to strong profitability for the future.
How Customer Relationship Management Works
It uses cloud-based software
Customer Relationship Management (CRM) is an organizational system using cloud-based software technology that tracks customer information. The software efficiently holds customer contact data all in one place. The customer's dashboard may contain an email address, phone number and web address. The dashboard can also hold special details relating to the customer's likes, dislikes and preferences about the company's goods and services. In this way, the company achieves a better understanding of how the customer interacts with and feels about the brand. The software also indicates the status of current orders and provides a way to improve customer service for the long-term.
It helps in-house team collaboration
A Customer Relationship Management system primarily revolves around recruiting and retaining new and existing customers. CRM also helps in-house teams effectively access and share other kinds of information and metrics. Sales managers use CRM dashboards to verify if their teams are hitting their sales quotas. Marketing managers can follow a promotional campaign and track how customers respond to the brand. Customer service front line teams can improve the way they interact with customers by phone or online. By allowing teams to obtain more comprehensive information, CRM gives its in-house teams a common platform for talking to each other about the customer without losing any data along the way. It also identifies any glitches in the system that may cause problems down the line.
It benefits supply chain and vendors
CRM is especially useful in the supply chain by helping businesses interact more efficiently with their vendors. The software functionality enables managers to schedule meetings and follow up activities. The process builds relationships and boosts transparency among all parties involved. With a more streamlined process, CRM is a win-win strategy for the customer, the in-house teams and the supply chain and procurement process. With better transparency and shared information, the stage is set for improved customer service. Happier customers mean increased profits down the line.
Why Customer Relationship Management Matters
It delivers more accurate metrics
Customer Relationship Management (CRM) software takes a picture of the customer that is accurate and comprehensive. With this information, a business can track a customer's interactions with the brand over time.
It can improve goods and services
When the customer service department takes a phone call or receives an email or text from a customer; the company gets first-hand knowledge of what the customer wants. If there's a problem, CRM provides an opportunity to correct it and make further improvements. The bottom line is that CRM can help companies nurture their business relationships for greater profitability.
It helps team work better together
Successful businesses are those that communicate well, both internally and externally. CRM is a business communication tool connecting in-house teams together by allowing them to access information within the same platform. Sales teams and marketing teams can analyze customer data to make decisions that simultaneously help the customer and support the business's objectives.