What does Customer Relationship Management involve?
The idea behind – Customer Relationship Management – often shortened to CRM – is to systematically cultivate customer relationships and increase the company’s success. With a CRM solution, all information concerning customers and orders are stored in a central location and are available to all employees. CRM and marketing often go hand in hand. This quickly becomes clear once you consider the main goals of CRM:
- Turning interested parties into customers
- Customer retention
- Improvement of customer orientation
- Analysis of purchasing behaviour, boosting of customer satisfaction and purchase frequency using the information obtained
- Early detection of changes in customer behaviour that enables companies to respond accordingly
- Increased quality of service to set yourself apart from the competition
The fact that companies need to invest much more time and effort in the acquisition of new customers than in the retention of existing customers is already one good argument for CRM. A CRM system supports marketing, distribution, sales and customer service – i.e. wherever you have direct contact with your customers.