Customer refers to an entity that acquires or consumes goods or services from a desired firm for a mutually decided price and has the ability to choose between different products and suppliers. 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. In any business, the bottom-line of CRM work flow is to
- Initiate Marketing,
- Process Sales,
- Schedule Orders and
- Provide Support .
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.
Benefits of using CRM.
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.
- 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
Realizing the investment towards any CRM initiative, it is crucial to all businesses to have a CRM evaluation method or CRM metrics in place. The prime concern of a CRM system is to improve relationship with customers and generate higher revenue. Therefore, it is necessary to identify if your CRM is to track the efficiency of sales and marketing team or is it to build a strong relationship with your customers? This would help determine the focus of CRM performance. Once the objective of CRM implementation is clearly defined, you can go ahead evaluating the best CRM for your business. This would help to judge how good or bad your CRM initiative has been ?