Customer Relationship Management 101
Customer relationship management (CRM) is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing,customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management denotes a company-wide business strategy embracing all client-facing departments and even beyond. When an implementation is effective, people, processes, and technology work in synergy to increase profitability, and reduce operational costs. – Wikipedia
CRM has become something that all business schools are talking about. As you can tell from the definition above, this is a strategy or management policy that can really increase profitability and growth. They have become essential parts of every business. They also help put the science into marketing. For years marketing has always been this abstract portion of your business that only a few creative geniuses have been able to figure out. But now we can use art and science to perfect our marketing techniques and increase overall productiveness in our attempts to engage our customers. Here are a few things to keep in mind as you build your CRM strategy.
- CRM strategies should be done with the idea that you will track the results and make data driven decisions on future campaigns based on the results of what you do
- CRM is a complete approach to customer interaction. By developing a CRM strategy, you are defining how every interaction with your customers will take place
- CRM is not a marketing strategy, it is a customer based strategy that focuses on your customers and their unique qualities
- There are lots of options, but only the right ones will maximize profit with your customers, don’t let people tell you in an abstract way that they’ll get you more customers, make them prove it with numbers. That’s where power happens.
Whatever your business, whatever your idea, dealing with your “customer” is one of the most important decisions you’ll make. Make it worth every penny!