CRM (Customer Relationship Management), as term defines itself that managing relationship between customers and an enterprise. This approach, practice or exercise involve customers` data which processes through different techniques, in order to improve company-customer relationship. Business grows with profit and profit comes through customers. The more enterprise has customers, the more it will earn profit. In order to retaining customers for longer time period, businesses use CRM. Every business, small or large scale, do CRM on their level. Even every individual do CRM as per his capacity. Basically purpose of CRM is to analyse customer data to improve service. This data includes personal information, inquiries from customers, sales made by particular customer, and repetition of sales.
Invention of computer and internet have great effect on businesses. A major shift has been seen after use of computer and internet in business. Same other areas, enterprises are also now shifted their operations on computer and now they manage every activity through computer. Similarly, managing customers activities are now easier with help of technology. Software are made for CRM. CRM software store, analyse and interpret customers` data. CRM systems/Software are specifically design to gather customer data through different ends. This data includes, personal information of customers, their purchase history, their inquiries, buying preferences. With help of these CRM software, front end staff can easily access to this data.
Initially CRM was just a topic of marketing but now it is studied independently. With the help of technology, CRM systems (Software) have been created. Based on activities and nature CRM systems has been divided into three main categories, Operational CRM, Analytical CRM and Collaborative CRM.
Operational CRM Systems
Sales Force Automation
Sales force automation involves all the stages of sales, starting from entering basic contact information of any customer to transforming him a prospective business client. For example, Oracle releases a CRM software in August 2000, which record contact information, makes schedules and performance tracking that is available to all employees so that they can easily access all the information through internet. Basically sales force automation automate all sales activities. Who is customer? What is his tracking number? What is his purchase history? What marketing activities has been done with him? What queries has been made from him? And future predictions about him. Sales force automation also coordinates marketing activities, call centers and integrate retail outlets. This CRM system allow company to stop duplication of activities and track all activities between both parties.
Marketing Automation concentrates on the process of making marketing campaigns more easy, well-organized, proficient, effective and operative. Marketing Automation CRM System allows business to implement those marketing campaigns which are more relevant to its target customers as well as how to implement those marketing campaigns and how to engage customers with these campaigns. CRM Systems with Marketing Automation tools help business to do marketing tasks repeatedly i.e. sending marketing emails on different times or posting marketing activities on social media. Basic marketing Automation purpose is to convert sales lead into final and repeated customer.
Service Automation CRM System are used to facilitate customers in order to give them better service. Customers are helped through different ways, for example mobile phone, emails, SMS, FAQs, tracking codes, Portals and helplines. All these activities managed through Service Automation. Microsoft Dynamics CRM System manages customers call time, call resolution, emails, SMS and more to improve the efficiency of service staff.
Analytical CRM Systems
As term define itself, Analytical CRM Systems are used to analysed customer data. Data gathered through different sources i.e. primary source or secondary source. Businesses can collect data by themselves or take from other data provider firms. Companies can collect data through surveys, interviews, and polls. Emails, SMS, phone calls, social networking website are platforms to use previous discussed data collection tools. Analysed data then present to managers and decision makers to make more informed and well decisions in business favour. Analytical CRM tools can mine data too. Furthermore, data can be correlated, rearranged and recognized through same tools. This type of CRM tools also improve service by searching small problems which can be solved immediately for different types of customers at the same time. These analytic helps businesses to make target pools of customers and allow firms to implement different marketing strategies. For example, through the result of analyses of this tools, managers analyse the buying behaviors of particular customers’ pool. Managers might believe that this specific customer pool is not purchasing some types of products in specific time period. Now with the help of this data managers can alter marketing and sales strategies as per their target market demand.
More about CRM: Models of CRM (Customer Relationship Management)
Collaborative CRM Systems
A successful business not only makes good relationship with customers, but stakeholders too. Success of business depends on good relationships with all stake holders, i.e. suppliers, vendors, distributors, social marketing organizations, governments, local governing bodies, and many others. Collaborative CRM Systems are used to manage collaboration between all stakeholders. They share customer information, business data, and market information. Within the organization, different departments are interlinked with this CRM System. For example, feedback can be collected from support call in order to improve marketing strategies and services for particular customers` set. The info about price of particular product defined by the customers can the transferred to finance and planning department in order to redesign the pricing strategy for that product to meet customer satisfaction. With the help of Collaborative CRM System, customer interaction across different channels can be enabled. Collaborative CRM System Integrates customer interaction with call centers to enable multi-channel interaction with customers and helps them make understand the overall process vales.
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