Customer relationship management (CRM) is a system for managing a companys interactions with current and future customers.

It often involves using technology to organize,

automate, and synchronize sales, marketing, customer service, and technical support.[1]

Characteristics of CRM[edit]

Relationship management is a customer-oriented feature with service response based on customer input, one-to-one solutions to customers requirements, direct online
communications with customer and customer service centers that help customers solve their issues.

Sales force automation. This function can implement sales promotion analysis, automate tracking of a clients account history for repeated sales or future sales, and also
oordinate sales, marketing, call centers, and retail outlets in order to realize the salesforce automation.

Use of technology. This feature is about following the technology trend and skills of value delivering using technology to make up-to-the-second customer data available. It
applies data warehouse technology in order to aggregate transaction information, to merge the information with CRM products, and to provide KPI (key performance indicators).

Opportunity management. This feature helps the company to manage unpredictable growth and demand and implement a good forecasting model to integrate sales history
with sales projections.[7]

CRM in developing and maintaining client relationships.

Implementing CRM in a company[edit]

The following are general guidelines on implementing a CRM system.

1.

Make a strategic decision on what problems you want your CRM system to address, what improvements or changes it should bring in the business processes of the
organization.

2.

Choose an appropriate project manager. Typically IT will be engaged, however a manager with a customer service/sales and marketing business focus should be involved,
as the impact of the project will be mainly on the business side.

3.

Ensure executive sponsorship and top management support.

4.

Empower team members with the required authority to complete the tasks.

5.

Select the correct implementation partner. They must have both vertical and horizontal business knowledge, as well as technical expertise.

6.

Define KPI's that will measure the project's success

7.

Use a phased approach. Work towards long-term enterprise-scale implementation through a series of smaller, phased implementations

NATURE AND SCOPE

The Customer is King! This credo is more powerful, relevant and true today than ever before. In a truly customer driven economy, success depends on a companys ability to be with
the customer on a round the clock basis satisfying all their product and service specific needs. Simply stated, Customer Relationship Management (CRM) is about finding, getting, and retaining
customers.

Customer Relationship Management is one of the hottest and most talked about topics in the
industry today and for good reason. 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. Simply stated, Customer Relationship Management(CRM) is about finding, getting, and retaining customers. CRM is at the core of
any customer- focused business strategy and includes the people, processes, and technology questions associated with marketing, sales, and service. In todays hyper-competitive world, organizations
looking to implement successful CRM strategies need to focus on a common view of the customer using integrated information systems and contact center implementations that allow the customer to
communicate via any desired communication channel.

CRM is all about building long term business relationships with your customers. It is best described as the blending of internal business processes: Sales, Marketing and Customer
support with technology. CRM is to meet and exceed customer expectations, create a positive customer experience and build customer loyalty. Solutions empower businesses to more efficiently and
effectively manage the activities that affect their relationship with their customers. The ultimate goal of

CRM changes all of this and represents a continuing evolution in managing

front office operations. With CRM, traditional departmental applications
for sales, marketing and customer service are consolidated into a single
unified system capable of managing the entire customer life cycle. This
approach allows employees throughout an organization to have immediate access to
a complete profile of important customer information. Organizations who are
implementing CRM solutions feel confident that providing access to this level of
information will assist their sales and support staff in better understanding the
needs and buying patterns of their customers.
What exactly is the definition of Customer Relationship Management? Ask a dozen professionals, get a dozen different definitions. Heres a general overview:
CRM is used to learn more about your key customers needs in order to develop a stronger relationship with them.
Customer Relationship Management can be defined as companys activities related to increasing the customer base by acquiring new customers and meeting the needs of the existing customers.
CRM is about building partnerships with your customers. It uses internal business processes from Sales, Customer Service and Marketing.
The philosophy of CRM is the recognition that your long-term relationships with your customers can be one of the most important assets of an organization, providing competitive advantage and
improved profitability
The most important part of CRM is the customer-focus.
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 uses technology, strategic planning and personal marketing techniques
to build a relationship that increases profit margins and productivity. It uses a
business strategy that puts the customer at the core of a companies processes and
practices. It requires this customer focused business philosophy to support effective
sales, marketing, and customer service and order fulfillment.
Regardless of company size or industry, businesses have begun to recognize the value and importance of customer retention and are embracing new technology for automating customer
service and support. For the new millennium, it seems that the customer has finally become King!!!
Customers can be divided into three zones:

Zone of defection where customers are extremely hostile and have the
lowest level of satisfaction.
Zone of indifference where customers are not sure. They have a medium
level of satisfaction and loyalty towards the company.
The third level of customers is in the zone of affection described as
Apostles. CRM focuses on bringing customers from level 1 to level 3 and
retaining apostle customers.

1.

2.

3.

Customer demands for customization is increasing with every passing day. This has made companies shift their focus from mass production to mass customization. The present
scenario of companies using poorly implemented multi channel strategies for living upto the expectations of customers is bringing both customer satisfaction and customer loyalty down the ladder.
Today any company can copy products or services offered by other companies. If the new entrant adds features like less order turn around time and direct communication then
established players are bound to have sleepless nights. Organizations that implement CRM and turn their business into e-businesses will find their competitors customers ready to welcome them with a
smile.
The

top four reasons

Contributing Writer
eHow Contributor

Share

Tweet

for implementing CRM are:

What Is the Scope of CRM?

Stumble

Share

CRM, or customer relationship management, is concerned with the development and maintenance of mutually beneficial relationships with
strategically significant partners. Its focus is the creation of long-term value, and not just short-term profits, for the company and all it works with.
The scope of CRM can thus be defined according to its constituencies, how long-term value can be created for and with them and the benefits of
doing so.

Other People Are Reading

Purpose of a CRM

Role of CRM in Marketing

1.
o

The Customer
The customer is of key importance because only relationships with customers generate revenues for a company. Establishing
a good long-term relationship with customers can take the form of the provision of benefits such as special prices and preferential treatment. Doing
so can bring about drastic increases in value due to frequent sales from satisfied customers, positive word of mouth, a reduced need for product
sampling and advertising, and increased possibility of cross-selling or purchasing of other products.

The Suppliers
o

Suppliers provide input, such as raw materials, technologies, components, investment, human resources and expertise, to
the companys value chain. In 2010 companies have tended to shift to a smaller number of suppliers and create and maintain long-term relationships
with them. Enhanced performance can result from improved communication and coordination with this set of suppliers. Purchas

Read more : http://www.ehow.com/about_6599515_scope-crm_.html

Gaining customer confidence and loyalty

Providing personalized service to customers
Acquiring better knowledge of customers and their buying habits
Differentiating themselves from the competition
Source:http://www.managementparadise.com/forums/humanresources-management/19037-crm.html
Be Sociable, Share!

Tweet

Related posts:
1.

Customer Service

2.

Supply Chain Management

3.

Offshore Outsourcing

4.

The Extended marketing mix (7Ps)

Tags: Buying Habits, Competition, Confidence, CRM, Customer, Customer Focus, Customer Life Cycle,Customer Relationship
Management, Economy, King, Knowledge, Loyalty, Marketing, Nature, Personalized Service, Sales, Scope, Smile, Support, technology, Zone of Affection, Zone of Defection, Zone of Indifference,Zones