What is CUSTOMER RELATIONSHIP MANAGEMENT?
CUSTOMER RELATIONSHIP MANAGEMENT first came unto the scene as mere software that organized and displayed customer information in a format that enabled customer service agents to offer fully informed and holistic customer service. This nascent software initiated the birth of a new philosophy in business strategy. The idea is that when a customer support representative - or any agent that deals directly with the customer- sits with a client they should also have all the marketing and sales etc. information relavent to that customer at his fingertips as well. That is the way to cultivate customer loyalty and solidify a strong client base.
The success of applying the CRM philosphy in full scale depends on 3 crucial elements: people, process, and technolgy. The first crucial element requires the employees - the people of the company - to take the CRM initiative seriously. Each and every employee must invest time and energy into using and maximizing the potential of the CRM. This attitude is closely tied with the process element. A company must possess a collective attitude - or reshape the process of their business transactions to depict this attitude - of wanting to better serve the customer, and of feeling enthused to do so by utilizing the CRM. Thirdly, it is important that technology of the CRM be tailored to the company's needs and easy to access and use. Without the three elements the very integrity of the CRM is compromised.
The technique of learning the customer's needs and habits is the foundation of business success. This line of thinking is the recipe for business success, and the CRM is the array of cooking utensils that allows that recipe to become a reality. What is that reality? Gaining insight about the customers that allows for improved customer service, increased call center efficiency, added cross-sell and upsell opportunities, improved close rates, streamlined sales and marketing processes, improved customer profiling and targeting, reduced costs, and increased share of customer and overall profitability.
A successful CRM is like a dream come true for most companies, but that dream doesn't materialize without effort. Each of the three crucial elements mentioned above must be adequately addressed: The employees must be motivated to make the CRM work. The present methods of the company must oftened be reformulated to support the goal of the CRM - of creating high quality customer relations. And the right technology must be acquired. Workable solutions can be web-based and paid for on a monthly basis. Truly tailored solutions often take a year or more to purchase, customize, and install, and can cost millions of dollars.
