What is CRM?

CRM – Introduction

CRM

CRM or Customer Relationship Management today refers to the methodologies, software and system capabilities that together help an organization practice effective customer management.

Theoretically, CRM is a term that encompasses all aspects of a Business-Customer relationship; the term “customer” also includes prospective customers.

Client interactions affect every function of an organization. Hence, an effective CRM system needs to span the entire gamut of organizational functions including sales, marketing, customer service, finance and quality. CRM, thus includes in it’s ambit both functions that are traditionally “associated” with customers (sales, marketing, customer service) and functions that are perceived to be “not associated” with customers, like finance.

CRM – Applications & Benefits

CRM enables an organization to:

•  Identify and know their customers and their preferences : This involves collecting data (name, age, gender, preferences etc), about customers and prospects, and its meaningful segregation.

• Adapt to the customer: An organization that understands its customers, can target them with appropriate products/services and even a personalized experience. Technology is the great enabler here. Imagine the reaction of a customer who logs into an online retailer’s and is immediately presented with the current “deals” on his favorite author’s books, or the DVDs of his favorite films, or whatever is his preference.

• CRM also helps organizations keep track of evolving customer preferences, identify market trends and position appropriate products/services.

•  Communicate effectively with the customer : Older customers are generally not very comfortable with “new-fangled” methods of communication like email, chat, sms or “smartphone apps”. The younger generation swears by them. A busy executive may prefer to be informed of new deals or product/service offerings via SMS and email rather than by a call. A prospective customer may learn of an interesting new product/service from a billboard advertisement. Every customer therefore needs to understood before the communication process sets into motion. CRM not only helps an organization use the appropriate delivery channel to reach its customers but also to reach them “ASAP”.

•  Market/cross-sell to the customer:When an organization, via its CRM system, knows its target audience, it can tailor its catalogues accordingly and can effectively communicate with this audience, half, if not more of the battle to market/cross-sell is won.

• CRM is also great at generating leads. Doubt it? Call JustDial requesting a retailer, of a specific product near you, and check the number of calls you receive within the next few minutes. The CRM integrates with the front-end or the customer interaction points, to throw up leads instantaneously.

CRM – The  Challenges

• Customer engagement now involves a variety of digital- and tech-enabled modes, including email, chat and sms, besides the traditional modes of communication. The CRM should be able to integrate these delivery modes into its DNA.

• The explosion of interest and involvement in popular social media sites places a unique set of challenges on organizations and their CRMs to not only engage with their audience via these sites but also derive usable data from such interactions.

•  Organizations have become proactive in initiating engagement with their existing and prospective customers. Effectively managing the resulting massive flow of information and making meaningful use of it requires powerful software and robust system capabilities.

•  Customers have become savvy. Retaining the loyalty of these customers requires organizations to display a high level of nimbleness in their response to changing market dynamics. The CRM implementation should enable the development of such capabilities in the organization.