CRM stands for Customer Relationship Management. It’s a technology used to manage interactions with customers and potential customers. A CRM system helps organisations build customer relationships and streamline processes so they can increase sales, improve customer service, and increase profitability.
The goal of CRM is to improve business relationships with their customers, this is achieved through customer retention and customer acquisitions (in laymen’s terms it is holding on to your current customers and the ability to gain new customers overtime).
Different uses of CRM:
- CRM as Technology: This is a technology product, often in the cloud, that teams use to record, report and analyse interactions between the company and users. This is also called a CRM system or solution.
- CRM as a Strategy: This is a business’ philosophy about how relationships with customers and potential customers should be managed
- CRM as a Process: Think of this as the system a business adopts to nurture and manage those relationships.
Benefits of CRM:
- Better Data Organisation: CRM software allows businesses to import their data through leads, contacts and customers which as a result allows a business to keep track of their sales and engagement with the business.
- Enhanced Communications: CRM software provides automatic reminders for sales teams and allows a business to create email templates speeding up the process of contacting customers.
- Easily Share Information within the Business: A portal that allows a business to easily share information with employees through the use of one application.
- Catch all Leads: Quick analytics can assign the right employee depending on customer needs and allow for a quick response from the business to the customer.
- Analytics: CRM provides a lot of information for a business including things like sale numbers which help keep track of revenue generated by each employee allowing for an easier way to keep track of targets.
The use of the information above CRM allows a company to take a look at the level of customer support they provide along with raw data which in return allows them to implement/change strategy depending on the business/customer needs at any time. As a result of this information provided a business should be able to increase customer satisfaction, engagement and profits. A CRM is just one of the many tools a successful business should be using as a means to improve profits and customer acquisitions.