Customers Relationship Management

Topics: Customer relationship management, Marketing, Customer service Pages: 13 (4308 words) Published: October 11, 2013

1.0              Introduction to CRM.
2.0              CRM in Marketing, Sales Force Automation, CRM in e-Business, Analytical CRM and planning and managing CRM programmes.  
3.0              Emerging concepts in CRM, CRM Strategy, Implementing CRM, Relationship Management in B2B Commerce, CRM in services and e-CRM.  
4.0              Segmentation and Selection.
5.0              Retention and Cross-sell Analysis

Introduction to CRM.
CRM is the abbreviation for customer relationship management. It entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. CRM is often thought of as a business strategy that enables businesses to: Understand the customer

Retain customers through better customer experience
Attract new customer
Win new clients and contracts
Increase profitably
Decrease customer management costs
Within the present business environment, characterized by an increasingly aggressive competence, the battle to win customers is stronger every day. Companies that enter to compete in a new market weaken the already existing and solid ones, due to the new ways of doing and conceiving businesses. One of the factors that have driven all these changes is the constant change and the evolution of technology. Because of this reality, the CRM concept has evolved in such a way that nowadays it must be viewed as a strategy to maintain a long-term relationship with the customers. Further to the knowledge and implications that surround a CRM, one of the main problems is that no model exists to guide companies in the implementation of this type of strategy. Each company is different, has its own culture and business processes, etc. Consequently, it is important not to consider CRM as a magical solution that will solve all the company’s problems. On the contrary, it must be studied to know its benefits and impacts for the organization. The implementation of this strategy requires hard work to be successful. Customer refers to an entity that acquires or consumes goods or services from a desired firm (through the process of purchasing or renting) for a mutually decided amount of damages and has the ability to choose between different products and suppliers. In this sense a customer is also known as client, buyer, purchaser or user of the products/services delivered or provided by a firm or organization also called the supplier, seller or the service provider.

Relationship in business refers to a state involving mutual dealings between people or parties. It involves interactions with customers or prospects to better understand their requirements and to build an expectation through different channels of communication. The more one interacts, the more chances of building a strong business relationship on the grounds of proper understanding of customers. Management refers to managing of customer interactions. This does not merely mean customer support but in its true sense aims at mobilizing the entire organization towards management of all interactions with the customers, thus involving a customer-centric thinking and acting. How CRM is Used Today

While the phrase customer relationship management is most commonly used to describe a business-customer relationship, CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads. Customer relationship management solutions provide a business with the customer business data to help it provide services or products that customers want, provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and understand who the customer is. A CRM business strategy includes marketing, operations, sales, customer service, human resources, R&D and finance, as well as information technology and the Internet to maximize the profitability of customer interactions. For customers, CRM offers customization, simplicity, and...
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