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Customer relationship management
From Wikipedia, the free encyclopedia

Customer relationship management (CRM) is a widely implemented model for managing a company’s interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.[1] The overall goals are to find, attract, and win new clients; nurture and retain those the company already has; entice former clients back into the fold; and reduce the costs of marketing and client service.[2] Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.[3] Measuring and valuing customer relationships is critical to implementing this strategy.[4]

Contents
  [hide] 
·1 Benefits of Customer Relationship Management
·2 Challenges
o2.1 Complexity
o2.2 Poor usability
o2.3 Fragmentation
o2.4 Business reputation
o2.5 Security, privacy and data security concerns
·3 Types/variations
o3.1 Sales force automation
o3.2 Marketing
o3.3 Customer service and support
o3.4 Appointment
o3.5 Analytics
o3.6 Integrated/collaborative
o3.7 Small business
o3.8 Social media
o3.9 Non-profit and membership-based
o3.10 Horizontal Vs. Vertical
·4 Strategy
·5 Implementation
o5.1 Implementation issues
o5.2 Adoption issues
o5.3 Statistics
o5.4 Increasing usage and adoption rates
o5.5 Help menus
·6 Development
o6.1 Clarity
o6.2 Test users
·7 Market structures
·8 Related trends
·9 See also
·10 Notes
[edit]Benefits of Customer Relationship Management
A Customer Relationship Management system may be chosen because it is thought to provide the following advantages:[citation needed] §Quality and efficiency
§Decrease in overall costs
§Decision support
§Enterprise ability
§Customer Attentions
§Increase profitability
§Improved planning
§Improved product development
[edit]Challenges
Successful development, implementation, use and support of customer relationship management systems can provide a significant advantage to the user, but often there are obstacles that obstruct the user from using the system to its full potential. Instances of a CRM attempting to contain a large, complex group of data can become cumbersome and difficult to understand for ill-trained users. The lack of senior management sponsorship can also hinder the success of a new CRM system. Stakeholders must be identified early in the process and a full commitment is needed from all executives before beginning the conversion. But the challenges faced by the company will last longer for the convenience of their customers.[citation needed] Additionally, an interface that is difficult to navigate or understand can hinder the CRM’s effectiveness, causing users to pick and choose which areas of the system to be used, while others may be pushed aside. This fragmented implementation can cause inherent challenges, as only certain parts are used and the system is not fully functional. The increased use of customer relationship management software has also led to an industry-wide shift in evaluating the role of the developer in designing and maintaining its software. Companies are urged to consider the overall impact of a viable CRM software suite and the potential for good or bad in its use.[citation needed] [edit]Complexity

Tools and workflows can be complex, especially for large businesses. Previously these tools were generally limited to simple CRM solutions which focused on monitoring and recording interactions and communications. Software solutions then expanded to embrace deal tracking, territories, opportunities, and the sales pipeline itself. Next came the advent of tools for other client-interface business functions, as described below. These tools have been, and still are, offered as on-premises...
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