4. Analyse critically how Customer Relationship Management (CRM) system can play an important role to increase profits for each of the organization.
CRM (Customer Relationship Management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had purchased, and so forth. (Eric Williams, 2006). The CRM system track all of the ways in which a company interacts with its customers and analyze these interactions to optimize revenue, profitability, customer satisfaction because they are getting exactly what they want (ie., exceeding expectations) and customer retention. It also enable employees who interact directly with customers to provide better, more personal service for the customers. The CRM help a company to build customer relationships by looking at things from the customer’s perspective. The company use CRM to focus on what exactly do their customers want and need which enables the production and service efforts. By using CRM a company knowing which products or customers are most or least profitable which enables them focus on maximising profit. The purpose of CRM is to increase profit by providing a better service to your customers than your competitors. CRM will also reduce costs, because the right things are being done (ie., effective and efficient operation), wastage, and complaints. Customer relationship management tools include the software and browser- based application that can receive and organize the information about the customer and then provide to the...
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