What Is Customer Relationship Management?
Customer relationship management (CRM) is an enterprise strategy that is geared towards increasing customer satisfaction and loyalty by delivering experiences that are unique to each person. This is accomplished through the use of processes, technology and teamwork across departments.
In the past maintaining these relationships was manual labor and effort. Businesses used to store customer contact information in rolodexes, filing cabinets or spreadsheets. They were not shared with other departments and frequently resulted in lost sales opportunities and ineffective communication. With the introduction of new marketing-technology platforms that provide an integrated database of customer information, maintaining relationships is much more simple and efficient. These systems are called CRM systems.
CRM tools streamline and centralize customer information which makes it easier for teams to work together to maintain leads and improve the overall funnel for sales and marketing. CRMs monitor lead and customer interactions and help businesses identify and prioritize the most valuable leads. This enables salespeople to only reach out to prospects who are qualified. This can result in more conversion rates and greater purchase value, and could significantly decrease the time required to close a deal.
Personalization is another important element of a CRM strategy which shows customers that their business is appreciated. Sending a personalized note of thanks after making a purchase or customizing products or services to satisfy a specific need can create a bond that encourages customers to return to purchase and brand loyalty.