CRM System: Customer Relationship Management (CRM) firstly came from the United States but different companies worldwide define it differently. However, no matter how you define it, one thing is generally recognized: it refers to the process of relationships between enterprises and customers in scenarios such as brand promotion, sales of products or provision of services with customers as the core.
The goal is to attract new customers’ attention and convert them into corporate paying users, increase the retention rate of old customers, and help refer new ones to increase the company’s market share and profits and enhance its competitiveness.
Customers are an important asset of any enterprise, and the value of products or services of an enterprise often needs to be reflected from its customers. So how to establish long-term and effective business relationships with customers, and how to get closer in every contact with customers? It is very important for customers to understand their needs, and to establish win-win cooperation with them.
There are many points of view on CRM and its definitions in simple terms, here are a number of them:
- CRM is a technology-coupled business strategy to effectively manage the complete customer lifecycle.
- Term e-commerce techniques, technologies and capabilities utilized by companies to manage customer relationships.
- CRM is an e-commerce application.
- Comprehensive strategy and process for attracting, retaining and partnering with selected customers to make higher value for the corporate and therefore the customer.
As we can see, the term CRM system can mean both specialized software and a business approach. As a supporter of the CRM business approach, we think that CRM is going to be fully revealed given that you approach it from a strategic point of view. Although the term CRM is comparatively new, the ideas behind it can’t be called that: companies have long used various kinds of customer relationship management.
CRM Differences | CRM System
What differentiates today’s CRM system is that companies can individually work with each of their thousands or a lot of customers: it represents a relationship marketing perspective on customer management, and also the key innovation is that today these principles operate within the context of unprecedented technological modernization and market transformation.
CRM origins in the last years of the 20th century, there was a split in the business between the understandings of promoting. In contrast to traditional approaches aimed toward one-off sales, marketing as building a system of partnerships involves an extended, maximally close interaction with customers and other stakeholders, and support advantage of the parties.
Relationship marketing is more common in B2B markets for objective reasons. For example, Coca-Cola won’t suffer much from the loss of several dozen customers, while for industrialisation or a construction company, parting with one or two large customers may be disastrous. Within the field of corporate relations, retaining an “old” client is way more important than acquiring new ones.
Also, “corporate” goods and services have become more complex. It may be difficult for a client to grasp even what reasonably technical (technological) solution he needs, and even harder to properly assess the standard of the products offered to him. Accordingly, the further, the more important role trust plays in business relationships, and firms tend to trust the one that has been working with them for several years.
Thus, firms that have didn’t establish long-term relationships with a variety of consumers risk being “superfluous” within the market. However, in my opinion, the concept of CRM is also important for the B2C market, especially in some of its industries. For example, a modern fitness centre cannot do without it. In this business, every client counts, for the company a person from year to year must remain a client of their club. The entire business is built on long-term relationships that guarantee long-term financial well-being.
Also, using a CRM approach will make it easier to return a customer, for example, when the pricing strategy has changed, the company can notify its previous and current customers about special prices for them. At the same time, if the company failed in sending a notification to all its customer, it may end by losing many of them.
All components are important in a CRM strategy; it will not function unless you purchase expensive software. We need a client-oriented ideology in the company, and of course a system of staff motivation.
Another important aspect is not to go too far, not to bombard customers with SMS and e-mail (SMS is generally bad form), such a development of events will only lead to a negative attitude of customers towards the company.
It’s always worth remembering that customers, the most valuable asset in a business, are extremely important to retain. But do not forget that, as in any field of activity, a systematic approach and common sense are important.
