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Customer Relationship Management


CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage 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 with clear goals and objectives, 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 their needs, and effectively build relationships between the company, its customer base, and distribution partners.

CRM--Customer Relationship Management--has entered the mainstream. Despite the uncertainty of the economy, CRM is being thrust into corporate budgets and talked about as a critical initiative by hundreds of Fortune 1,000 and tens of thousands of other companies. It has gone from being an important edge in the business world to a necessary tool for survival. The notion of the customer as king or queen is once again the rule. How you treat this is a mission-critical business issue.

But, what is CRM and how does it change the way companies do business? The changes in the world have been so dynamic and so dramatic that the path is not necessarily all that obvious. How CRM impacts that business path is a continuing source of debate in the world of corporate management.

Support for Your Biggest Asset: Your Customers

CRM applications, also known as front-office applications, help organizations manage critical customer relationships by supporting all customer-centric processes within an enterprise, including marketing, sales, and customer support. A CRM solution enables a company which has problems retaining existing customers or has an unsophisticated marketing strategy, to identify the customer demographics they can target and help pinpoint the direct causes of customer attrition. These systems are created for and utilized by customers, partners, and prospects to gather product and service information, obtain pricing quotes, place and track orders, solve product- and service-related problems and questions, and much more.

CRM solutions address other dilemmas confronting today's growing companies—the burden of a legacy system, the inability of that system to support anticipated growth and customer volume and/or no data integration strategy. In effect, CRM solves the problems associated with: a broadening and increasingly global customer base; ever changing, complex and personalized customer needs; new sales and marketing channels; an increase in product or service lines; strategic organizational shifts; and the migration and integration of data necessary for growth through mergers and acquisitions.

CRM offers the opportunity to develop, maintain, and leverage a consistent, accurate and timely set of customer, product, and service information across the customer-facing marketing, sales, service, support, and product development units of the enterprise. Its ability to directly increase corporate revenues explains its mainstream popularity. Indeed, enterprises implementing CRM can, and if necessary in real time, quantify their investment in CRM in terms of increased revenue, lower costs, enhanced customer satisfaction/retention, new business development and improved profitability.