What Is Customer Relationship Management?
Customer relationship management (CRM) is a business strategy geared toward increasing customer satisfaction and loyalty by creating experiences that are unique to each person. This is achieved through the use of processes, technology and teamwork across departments.
In decades past maintaining these relationships was a lengthy and manual process. Businesses stored customer contact information in filing cabinets and rolodexes or in spreadsheets, which were often not shared with other departments, which led to lost sales opportunities and miscommunication. With the advent of new marketing-technology platforms that provide a central database for customer information, maintaining relationships is much simpler and more efficient. These systems are referred to as CRM systems.
CRM tools are designed to centralize and streamline customer data to make it easier for teams and individuals to work together and nurture leads, improving the overall funnel of sales and marketing. In addition to tracking customer and lead interactions, CRM tools help businesses identify the most effective leads by scoring and prioritizing them, ensuring that sales representatives are only contacted with prospects who are qualified. This results in higher conversion rates and purchase values, and can significantly decrease the time required to close a deal.
Personalization is one of the most important elements of a strong CRM practice in that it lets customers know that their business is appreciated. From sending a personal thank you note following the sale, to customizing a product or service to meet certain needs that creates a feeling of connection that encourages the purchase of more products and brands, as well as brand loyalty.
