Customer relationship management (CRM) refers to a strategy widely used by companies and organizations (including related integrated information systems and technology, often in the form of software) to record and manage their overall data and interactions with current, past and potential customers.
CRM works to ensure that all customer-interfacing organizational functions (i.e., sales, marketing, technical support) are efficient and synchronized, ensuring that former and potential customers are adequately and appropriately served.
The most critical purpose of CRM is to manage each instance of the company’s customer interaction. CRM manages, stores and disseminates customer information with many built-in tools that can be applied to raw data pertaining to a customer or any given category of customer. For example, data may be analyzed to segregate customers according to demographic, occupation and age, etc.
CRM plays a vital role in an organization’s marketing and research departments. For example, if data indicates that a majority of customers are from Texas, a sales and marketing department can customize strategies for that state. These and other data-mining efforts may show trends to help businesses make better strategic decisions, utilizing technology wisely to serve the needs and wants of customers.
Web Marketing: With the growing popularity of web, customers are tending towards web marketing or web shopping. This helps both customers and suppliers to transact in a real time environment irrespective of their locations. Some of the major advantages of Web Marketing are listed below:
- It is relatively very inexpensive as it reduces the cost for physically reaching to the target customers for interaction.
- Suppliers can reach to more number of customers in lesser amount of time.
- The online marketing campaigns can be easily tracked, traced, calculated and tested.
- The selection process of any product or brand is simplified due to proven online research and analysis techniques.
- Online marketing campaigns are more promotional as compared to manual campaigns.
Email Marketing: Email marketing has turned out to be more efficacious and inexpensive as compared to mail or phone based marketing strategies. Email marketing is direct marketing which is data driven and leads to more accurate customer response and effective fulfillment of customer needs. More attractive features include newsletters, sending of eCoupons, eCards, provision of saving events into calendars etc.
Analyzing customers buying behavior online: A CRM system provides a platform to analyze the customers buying behavior online. This interactive strategy provides great accuracy with high speed which includes profiling services furnishing elaborated bits of information regarding customers purchasing habits or behavior. Individualized analysis of this behavior also helps to identify to which product or brand the customers are more tended. For example an online selling website http://www.xyz.com can analyze the customers buying behavior by installing an in-house service with the help of a full-fledged CRM that checks what all products are being purchased by a particular customer and under which specific group they fall. This is achieved by personalized analyzing the buying history of customers in the past which predicts the future business with those customers also. This accomplishes to build a long-term relationship with customers by properly canvassing customer needs and resulting in customer satisfaction. Analyzing this particular buying behavior of customers online also helps to fix or change of marketing techniques or strategies to mould the system according to the future perspectives.
Forecasting future marketing strategies: Down the line marketing strategies keeps on changing according to the emotional behavioral change of customers. CRM market forecasting techniques help to understand this change through regression and statistical analysis of customer behavior online. These are some complex but more accurate analysis techniques provided by CRM system which are proved to be one of best marketing strategies. This innovative approach is carried out with greater risks but is believed to outturn astonishing rewards.
Building business impact models: It is important for an organization to have check on marketing performance regularly so that the techniques never deteriorate and always match to yield greater results. These CRM oriented models help in delivering accurate measurement of marketing performance throughout the organization and to do better every time.