Concepts of Customer Relationship Management

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(CRM)

By: Alireza Azizi

November 05, 2014

crm  Alireza Azizi

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CRM means customer relationship management. Generally CRM is a complete set of processes and technologies of software and hardware in order to manage relationships with current and potential customers. The main functions of this system include identifying, encouraging, developing, maintaining and providing better service to the customers and reporting of these processes is a desirable feature of this system. CRM is a business strategy to select and manage customers in order to optimize and enhance the value of corporate as well as sale in the long run. Customer relationship management is a comprehensive business and marketing strategy that integrates technology, processes and entire business activities around the customer. CRM is an integrated information system for planning, scheduling and activities controlling before and after the sale of organization in order to empower clients to interact with the organization through various means such as website, telephone, etc. CRM states its tasks at three operational, analytical and co-operational phases which include:

  1. Operational that is responsible for automation of basic business processes such as sale, marketing and etc.
  2. Analytical that deals with customer behavior analysis and business intelligence implement.
  3. Co-operational which guarantees the contact with customers via telephone, email, fax, web, etc.

The operational part that is the most important and basic system typically involves three general business fields, Sales Force Automation(SFA), Customer Service and Support (CSS) and Enterprise Marketing Automation (EMA).

In the field of EMA or marketing department, some information is reported regarding to competitors, market trends and macro-environmental variables in the system.

In the field of SFA or sale management department some of the sales process and company’s sales management are performed. This section seeks to collect information about shopping habits, customer friendly and customer tastes and demographics of customers and sales staff’s performance.

In the field of CSS or customer service department, system is optimization agent of some services such as information request, complains, return items, product support and so much more.

CRM Strategy

CRM as a planned strategy trains you about understanding the needs of more customers by staff training and guidance to strength the relations between people in an organization and its customers. The progress and success of an organization depends on good and continually communication with the customers and the success comes with customer relationship management.

The benefits of customer relationship management system are as follows:

  1. Speedin satisfyingtheneeds and demands of
  2. Theopportunity toseethe customeragain.
  3. The cost saving are used in advertising and introducing the organization services.
  4. Increasing theutilityandquality ofthe marketing processthatwill lead tomore sales.
  5. Learn more aboutthe needs,demands andcustomerinterests.
  6. Finally, receiving the positive from customer that incentive tosell more, provide more servicesandincrease
  7. Increasing quality and quantity levels of customer services.
  8. Reducingcustomer problemsand therebyreducingcustomerdissatisfactionandtheir objections.
  9. Organizing and coordinating between the company’s vision and company’s marketing and advertising operations.
  10. Activities reduction and strict energy dissipation that are applied while achieving the sale phase and leads wasting of company’s human and financial capital.

Undoubtedly it can be said that customer relationship management system is the best and most useful system to communicate with the customer. You may be able to work without this system, but you can never create a sustained and continuous growth.

Concepts of Customer Relationship Management CRM