Answer to Question #207575 in Management for Prabhdeep

Question

SUBJECT : CONSUMER BEHAVIOUR

What is the role of CRM in delivering customer relationship strategy , give 7 points with elaboration for role ? Explain with suitable examples.

Answer 1

Customer relationship management (CRM) encompasses all of a company's strategies, procedures, and technology for recording, managing, and evaluating interactions with current, past, and potential customers in order to develop and enrich those relationships. The most important role of CRM is to track each customer interaction via the company's website, phone, live chat, direct mail, marketing tools, and social media in order to aggregate client information into a single CRM database. It has a number of built-in tools (software) that may be applied to raw data about a customer or a group of customers in order to manage, store, and disseminate customer data. Data can be analyzed to segment customers based on their demographics, occupations, and ages, for example. CRM software processes data to assist businesses in providing services or goods that customers want. Customer relationship management is frequently described as a business strategy that enables companies to improve in specific areas.

·        A CRM system includes a historical perspective and analysis of all clients who have been acquired or who are about to be acquired. This aids in reducing the time spent searching for and correlating customers, as well as successfully anticipating client wants and increasing company.

·        CRM stores all of a customer's information, making it simple to track a customer's progress and determining which customers are likely to be profitable.

·        Customers are divided into numerous categories in CRM systems, such as the type of company they undertake or their physical location, and are assigned to different customer managers, also known as account managers. This aids in focusing and concentrating on each consumer individually.

·        A CRM system is useful not only for dealing with existing clients, but also for acquiring new ones. The process begins with identifying a customer and entering all pertinent information into the CRM system, commonly known as an "Opportunity of Business." The Sales and Field personnel then attempt to gain business from these consumers by following up with them in a sophisticated manner and converting them into a winning contract. An integrated CRM system can handle all of this quickly and efficiently.

·        Customer Relationship Management's strongest feature is that it is incredibly cost-effective. The benefit of a well-implemented CRM system is that it reduces the need for paper and manual labor, requiring fewer people to administer and less resources to maintain. In comparison to the conventional manner of doing business, the technologies required to construct a CRM system are also quite cheap and easy to use.

·        All of the information in the CRM system is centralized and accessible at any time. This shortens the procedure and boosts production.

·        Customer satisfaction is increased by efficiently dealing with all consumers and providing them with what they require. This raises the likelihood of gaining more business, resulting in increased turnover and profit.