CRM is basically stands for Customer Relationship Management. This is the one of the easiest technology which is used for managing interactions with current and potential customers. CRM is a wide business strategy which is designed to increase the revenue and profits, reduce their costing and improve customer’s loyalty with the company. Customer Relationship Management Delivers a better customer experience which results your company’s growth and increases loyalty to your company.
How do we define CRM?
CRM focuses on customer’s retention and ultimately drives or company’s sales growth. Customer Relationship Management also improves the relationship of company with the individual users whether they are our customers, service users, suppliers or some sort of colleagues. CRM is not only made for sales growth but it can gain the productivity of company moving beyond CRM as a sales and marketing tool and embedding it in your company or business.
Working of CRM
Many people think that CRM is just a technology but in actual it is much more than it. No matter how much this technology is sophisticated but it helps us to grow our business with its implementation and use. Every technology has different working criteria. So in CRM case, it plays the role of customer-centricity, customer data management and automation.
If we talk about Customer Relationship Management working process then we must tell you that CRM works as a collecting agent who collects data from a number of communication channels which includes company’s telephone number, email id, website, live chat supports and social media. So in short CRM is the approach of compiling data of customers which helps the company to target number of people and fulfill their needs.
History of CRM
The Customer Relationship Management i.e. CRM concept was found in early 1970’s. That time there was a survey made on customer satisfaction. In 1997 CRM gained much popularity because of the work of Siebel, Gartner and IBM. Also, by 1997 to 2000, CRM was enhanced with work of delivery and showcasing capacities.
Siebel Sales Handheld was the very first CRM Application which was discovered by Siebel in 1999 while opening the first source Customer Relationship Management and was latterly known as Sugar CRM in 2004. The main motive of CRM is to integrate customers towards the company by promoting sales, marketing and support of customers.
Types of CRM
There are mainly five types of CRM is focusing on customer demands and needs. These are Strategic CRM, Operational CRM, Analytical CRM, Collaborative CRM and Customer Data Platform CRM. These categories are further discussed in details below:
1. Strategic CRM: This CRM is concentrated upon the advancement of a client driven business culture.
2. Operational CRM: This Type of CRM works on three sub-categories:
(a). Sales Force Automation: It works with all the stages of sales cycle by entering contact data to changing over a prospective customer into a real customer. It is purely depends upon Sales promotion analysis.
(b). Marketing Automation: This CRM helps in all type of marketing strategies. It makes the marketing phenomenon easier and efficient. Also it helps in reducing time when there are repeated tasks. For an example, we can send a lot of marketing emails to the customers at a single time.
(c). Service Automation: Service CRM works upon the principle of direct user technology. By using this type of CRM audiences are provided with multiple options such as emails, phone, FAQs etc.
3. Analytical CRM: This type of Customer relationship Management works on the principle of analyzing method. In actual, this CRM analyzes customer information which is collected through different mediums and sources so that business managers can make more effective decisions.
Customer Data Platform: CDP (Customer Data Platform) is a system which is used by marketing departments. They assemble information about individuals from various to one database. As of February 2017 there were around twenty organizations selling such frameworks and income for them was around US$300 million.
Benefits of CRM
CRM has many types of advantages for a business including direct improvements to the bottom lines. The main benefits of using CRM systems are given below:
1. They can increase the sales up to 37%
2. By using CRM systems we can get high sales productivity up to 44%
3. Customer Relationship Management can forecast Accuracy by 48%.