Customer relationship management (CRM) builds customer-centered organizations, placing the focus on the customer instead of sales or marketing. CRM is “based on an old idea that happy customers make for good business” (Method Integration, 2013). CRM helps a company attract and retain customers, increasing customer loyalty and an organization’s profitability (Baltzan, 2015).
Instead of using separate software on separate systems, CRM software brings all customer information together; information related to sales, marketing, customer service and technical support. CRM then shares this information with various departments across the company. CRM can also automate business processes such as invoicing and some CRM software can sync with other software systems i.e., accounting software.
CRM can help businesses stay competitive by making a customer’s communication with a company simpler and more streamlined. With all customer information in one place, a single employee can answer most questions when working with a customer. One employee is able to build a strong connection with a particular customer instead of a customer working with multiple employees while inquiring or purchasing the desired product or service.
CRM metrics can be used to measure performance. Metrics such as “number of retained customers,” “customer satisfaction level,” and “number of new customers acquired by marketing campaign” (Baltzan, 2015).
“CRM will be an alternative way to pursue a differentiation strategy with a non-differentiable product” (Baltzan, 2015). When a company is exploring CRM software options, the company should look for a system that has powerful features, but is simple to implement. A powerful and simple system will increase employee buy-in.
References
Baltzan, P. (2015). Business driven technology (6th ed.). New York: McGraw-Hill Education.
Method Integration. (2013, December 13). Retrieved from https://www.youtube.com/watch?v=3fL8umXcNf0
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